Local Search vs Local Search Indemnity Insurance

anon_2019

Hi,

I was wondering if anyone has an experience of proceeding with the Local Search Indemnity Insurance?

I bought my existing property which was a new build back in 2015. Myself & my partner are now buying together on the same development another new build due to be finished October/November 2019. The solicitor has suggested that the search indemnity insurance may well appeal to us this time round.

They have stated 'as this is an established development, the planning permissions are already in place and it is unlikely there would be any of the adverse entries referred to in the paragraph above. As a matter of practice we would always advise having a local search carried out in every purchase, as the only way to be 100% conclusive about such matters is by checking the public registers with the local authority.'

We are on timescales (of our own) to complete November latest and know our local council have huge delays on the Local Searches currently. I just wondered how concrete is the indemnity insurance in my situation?

Any feedback would be much appreciated

G_M

As your solicitor says, not having a local search done introduces a degree of risk. He is therefore professionally bound to recommend a local search.



But given that it's an established estate, and one that you are familiar with, the risk does sound minimal.


Are you getting a mortgage? Is the lender goimg to be happy with insurance? Usually the lender will be advised by their (ie your) solicitor....

davidmcn

For newbuilds I would say it's hardly worthwhile doing either, as the developer's planning process would have flushed out anything material. Just go for the insurance.

davidmcn

G_M wrote: »

Is the lender goimg to be happy with insurance?

The answers to which can be found here.

Slithery

I've done it before when buying in the same town as selling, but no mortgage was needed and I was happy to take the risk.

What does your new lender have to say on the matter?

Cakeguts

Don't you even want to know if the land the property is on is likely to be contaminated or not? What about mine shafts? Or even a new build we pulled out of when we found the developer didn't own the land the access road was on.

davidmcn

Cakeguts wrote: »

Don't you even want to know if the land the property is on is likely to be contaminated or not?

The local search would only help you to the limited extent that some contaminated sites are registered as such by local authorities. There will be much more detailed information about contamination in the reports submitted as part of the planning application, almost certainly available on the council's planning website.

What about mine shafts?

Not the local search, that would be the Coal Authority search. And again, ground stability would be covered by the planning papers.

Or even a new build we pulled out of when we found the developer didn't own the land the access road was on.

That's down to the solicitor's examination of title, not the local search.

ethank

You'll probably find that the developer already has taken out a policy for the entire site already.