No search indemnity insurance

GN2020

Hi everyone,
Our local authority search can’t be done until the end of January, I was talking to a friend yesterday about it and they mentioned the no search indemnity insurance. 
Given the amount of time it could take even after they start it, the mortgage offer could expire and the lady whose house we’re buying is in a care home, she’s not in the best of health so if she sadly passed, it would go to probate and set the whole thing back by months. 

Just to add, it’s only the local authority search that they can’t do.
We don’t plan on moving, we very much plan to live our days out in this house, we’ve no children and aren’t going to have any, we don’t want to extend the house etc either. 

Has anyone got any experience of this insurance? Pro’s, cons etc...

I’m just after some opinions before I speak with our solicitor today. 

Thank you. 

davidmcn

The main pros are that you don't need to wait, and it's cheaper than actually getting the search.
Only real cons are (a) it's insurance, so in the (immensely unlikely) event that a problem did crop up, it may well only pay out compensation rather than actually sort the problem, (b) it only covers things which objectively affect the value of the property, not minor surprises, and (c) some mortgage lenders don't accept them (I get the impression that the bulk do though).
Bear in mind the limitations of local searches anyway e.g. they'll tell you about the planning history of the property you're buying, not about the planning applications round the corner - do your own research for that sort of thing.

GN2020

davidmcn said:

The main pros are that you don't need to wait, and it's cheaper than actually getting the search.
Only real cons are (a) it's insurance, so in the (immensely unlikely) event that a problem did crop up, it may well only pay out compensation rather than actually sort the problem, (b) it only covers things which objectively affect the value of the property, not minor surprises, and (c) some mortgage lenders don't accept them (I get the impression that the bulk do though).
Bear in mind the limitations of local searches anyway e.g. they'll tell you about the planning history of the property you're buying, not about the planning applications round the corner - do your own research for that sort of thing.

Thanks ever so much for that, I do appreciate it. 

I’ve done some searching and the only planning nearby are some new houses but it’s not something that will affect us as it’s about half a mile down the road. 

There’s no real scope for extending the house we’re buying anyway and to be honest, we wouldn’t want to, it’s only us two and the house is fine as it is! 

GN2020

It’s with Nationwide as well if anyone knows whether they accept this insurance? 

davidmcn

GN2020 said:

It’s with Nationwide as well if anyone knows whether they accept this insurance? 

Yes - see 5.4.6:
https://lendershandbook.ukfinance.org.uk/lenders-handbook/englandandwales/nationwide-building-society/#C9105

GN2020

davidmcn said:

GN2020 said:

It’s with Nationwide as well if anyone knows whether they accept this insurance? 

Yes - see 5.4.6:
https://lendershandbook.ukfinance.org.uk/lenders-handbook/englandandwales/nationwide-building-society/#C9105

Ah that’s smashing, thanks so much for that!