Insurance for unknown covenants.

knightstyle

We have been quoted £118 with Liberty Mutual Insurance Europe SE for this on the house we are selling, plus £35+VAT handling charge by our solicitor.  Is this about right?  House was a new build 2006 and we bought from the builders but there are unknown covenants from 1886 that have been flagged up by the buyers solicitor.
Looking for cheaper quote who would you recommend?

Titus_Wadd

Is there much risk that anyone with an interest in enforcing these old covenants will do so?  Have you seen whatthey prohibit?  We have old covenants regarding brick kilns and gypsy encampments...I actually quite fancy having a Romany wagon as a Summer House...ever the small-time rebel!

davidmcn

What advice did you get when you bought? Is there perhaps an existing policy you've forgotten about?
Your solicitor is best to ask about competitive quotes if you really think it's worthwhile (generally the insurers don't deal directly with the public), but I wouldn't expect anything significantly cheaper.

Kyresa

Were these not flagged up in the paperwork when you purchased?  have a look through.  You might find a policy already in existence... 

knightstyle

Nothing from when we bought from the builders who no longer exist.

AdrianC

It's all about your appetite for risk.

The land that your 2006 house is built on has restrictions dating back from 1886. Those have been lost in the mists of time. There's a record that they apply... but not what they are.

What do you think the chances of the beneficiary of those covenants turning up, waving them, and saying "This says you cannot do X!"
Do you think that risk is so high that it's worth spending £160 on an insurance policy that'll pay the legal expenses to defend such a claim?

Remember - the insurers think it's such a low risk that they're only asking for £118 to cover that risk in perpetuity...

FinallyStoppedLurking

Probably not ever going to be an issue but I'd pay the £150 to make the sale go through. 

badger09

Selling a Probate property a couple of years ago, I paid £140 for an indemnity policy to cover the breach of a single covenant prohibiting any building/structure without permission. A conservatory had been added.

The risk of any follow up was negligible but I wouldn't risk a nervous buyer pulling out for the sake of £140 - less than 0.05% of agreed price.

knightstyle

Thanks for the replies, it just irks me that we have taken a hit on the price we paid in 2006 and now have to pay this.