Indemnity policy

Witeter

Hi there, wondered if anyone would be able to help. We are in the process of purchasing a property. Our solicitors highlighted that there is an unregistered lease on the property, when we looked for more information this lease was taken out in the 1920s and lasts for 99 years, there is around 7-9years left on the lease. Our mortgage provider is happy to lend as long as an indemnity policy is in place. The current owners have an indemnity policy for the property. We just don't know whether we should walk away from the property or not, is this a big deal? Is it low risk? We know that worse case scenario would be someone coming out of the woodwork and taking us to court in the coming years because they own the lease. Is this quite common? We love the house so are quite torn. Thanks

davidmcn

Witeter wrote: »

We know that worse case scenario would be someone coming out of the woodwork and taking us to court in the coming years because they own the lease. Is this quite common?

Is it quite common for the worst case scenario to occur? No, that's why insurance is readily available at a low price. If it were to happen, you'd pass it to the insurers to sort out. And in the really worst worst case scenario, the insurance would cover the loss in value of the property.

Aren't your solicitors giving you advice about this?

Witeter

Thanks for the reply. Our solicitor has advised us to not purchase it, however she also admits that she doesn't have much experience relating to indemnity policies in relation to unregistered leases. We are trying to figure out if our solicitor is just being overly cautious or if it really is something that most people wouldn't touch with a bargepole.