First time buyer help!

Gibbons4

Hello all,

Me and my partner have just been accepted for a share to buy mortgage... However, the lender is asking for an indemnity policy payment of £188 relating to the sewage works...

It is a new build in a new estate and has only recently been finished, so my question basically is do we need to pay it, or is it something that the housing association/sellers should be paying for, as the sewage works on the estate are not managed by us the buyers??

Any help would be greatly appreciated as my other half is at her wits end with it and I cannot make sense of the policy myself!

To make matters worse, our solicitor is saying that we could use another lender as they won't ask for it, but it's been going on so long now we want to just get it sorted and get into the property.

Thanks in advance.

Kind regards,

Pete

kingstreet

If the lender is asking for it, you appear to have no choice but to provide it.

As to who pays for it? Who knows? There is no hard and fast rule. If you want it dealt with quickly, pay it.

If you want to protract things more and have the HA think about it for two or three months...

Gibbons4

Hi kingstreet,

Thank you for your reply.

As we only own 40% of the property, we are trying to see if the HA will pay for the other 60%, or if they have any documentation declaring that the sewage works conform to the water authorities standards to waive the policy all together.

This is the reason for the policy:

This Adoption of Sewer Indemnity provides cover against potential liability for future costs demanded by the
relevant water authority to bring the sewer or drain connected to the property up to an adoptable standard.
It is designed to ensure you are indemnified against loss
arising from a claim under the policy, subject to the policy
terms and conditions.

I'm reading this as if it already has been verified by the water authorities then we don't need to pay it?

Thanks again.

Thrugelmir

Gibbons4 wrote: »

but it's been going on so long now we want to just get it sorted and get into the property.

For the amount involved seems simplest just to pay the amount required.

kingstreet

Gibbons4 wrote: »

I'm reading this as if it already has been verified by the water authorities then we don't need to pay it?

You would need to ask your solicitor to verify this.

Gibbons4

I know it's quicker to pay it, but I refuse to pay for something that I don't need to pay for...

As for the solicitors, they're currently about as much use as a chocolate tea pot!

enthusiasticsaver

So your choices are either you move to another lender and take the chance they also won't ask for it or ask the HA if they will contribute (unlikely) or just pay it. Unfortunately this trend for asking for indemnities for various things seems to be getting more common. Is it because the estate is not yet finished and the water authorities have not yet adopted the sewage pipes? Can you or your solicitor check with the water authorities as to when they are likely to adopt them?

Gibbons4

Hi,

Yes this is the reason for the indemnity, I have asked my HA to find out when this is likely to take place so will await their reply.

Thanks!