Indemnity policy??

sazandy25

Hi, we are in the process of remortgaging from Skipton building society to TSB. We only moved into the property August 2017, we have almost 50% ltv. We are currently tied in with Skipton until 31st August & have found a good 10 year fix.

TSB have issued the mortgage offer, but their solicitors are now asking for an Indemity policy?

Here is an extract from the email -

Thank you for providing the Leasehold information however we still await any indemnity policies that were provided to you upon your purchase in respect of the Good Leasehold Title held on your register.


This is your properties title as there is an absent freeholder and the Headlease has Good Leasehold title only. Should you not hold the relevant indemnity policy we are able to purchase one on your behalf.

Have got some old documents from the previous owners but not sure what I'm looking for.

Any advice advice gratefully received

minimike2

Do you have a policy?

If not they will arrange one for you (or you could arrange it yourself)

davidmcn

Are you sure this didn't come up when you bought? Try asking your solicitor.

sazandy25

No mention of anything when we bought.

How would I go about arranging one my self? Maybe cheaper to do it myself 🤔

Also how much are we talking roughly? House is worth £155000

davidmcn

They don't cost much and the solicitors can get them more easily than you can. Though you might want to ask your previous solicitors why they didn't do anything about it.

sazandy25

Have contacted previous solicitor as we definitely didn't receive anything.

Is a policy mandatory to remortgage?

davidmcn

sazandy25 wrote: »

Is a policy mandatory to remortgage?

I don't know in general how necessary it is for this sort of issue, but the new lenders are entitled to impose whatever requirements they like.

sazandy25

Is there anyway its covered on our house insurance, as when we take out/ renew it they ask if the property is leasehold etc.

Have emailed solicitor to ask why this wasn't flagged up when we moved & contacted the remortgage solicitor to check it is a requirement by the new lender & if they could provide a quote.

minimike2

No it would not be covered on a house insurance policy. You NEED to have a proper indemnity policy set up (this is usually just a one off payment and they are not expensive). Suggest just getting the solicitor to put it in place rather than dragging things out with "what if's" and "why's".

sazandy25

Thanks will do