Indemnity Policy

Wren14

The property I am purchasing has an extension to the side which was built before the current owner moved in.
He doesn't have any documents (certificates?) for this but took out an indemnity policy for the extension when he bought it. At the request of the solicitor he has now updated the indemnity to reflect the current value of the house.
My solicitor had asked if I am happy to go ahead with the indemnity policy in place and I have said yes. 
Does anybody know if this will affect the mortgage approval? It is going through Halifax with a LTV of 85%

K_S

@wren14 Your solicitor is acting on behalf of Halifax as well. So I would assume their recommendations if implemented would satisfy Halifax's requirements in this regard.

Wren14

Thanks @K_S, the solicitor did say that there were a couple of options:
A. Not proceed but this may not be your preferred option
B. Proceed with the indemnity policy but the mortgage provider would need to be notified and satisfied they are happy to proceed.
The solicitor has been careful not to actually give their opinion! From reading on this forum, indemnity policies are fairly common so I am hoping it is nothing to worry about! 

K_S

@wren14 Can't comment on your specific case, but it is indeed very common and from my experience 9 times out of 10 people pick B and the transaction goes on. Of course, this is just a general statement