Am I worried for nothing? Exchanging 3 months prior to completion.Stressing out

lookstraightahead

cramsteems said:

SpiderLegs said:

I don’t see the problem. 

Given it seems to be the thing you are worried about, when you agreed to exchange with a three month lead time, you specified that if your mortgage offer was pulled you could walk away with no penalty.

You did specify that didn’t you? 

We asked our solicitor to add that, however we have been told it is unlikely to be agreed as the seller would then likely want the same clause from the seller of the new home and that will not happen. The new home provider, don't give a crap, they want an exchange asap so they have a guaranteed buyer otherwise they will happily take the sellers deposit and then the seller will take ours. 

So you're the only ones missing out if it goes wrong.

Runningmad

On the development we are buying a house (FTB) you have to have already sold to proceed with buying the new build. So have to sell and go into rented or stay with relatives while the house is built . I know all developments are different but it's worth putting this to them. 

user1977

MaryNB said:

TheJP said:

MaryNB said:

TheJP said:

Continental said:

I wouldn’t exchange with a such a long time to completion.

You do realise that you would have to purchase buildings insurance at exchange? Anything major going wrong with the house would then be *your* responsibility.

The sellers should go into rented/AirBnB or stay with relatives if they are so desperate to exchange with a long lead time......with a shortage of building materials who is to say it the vendors new build will even be ready? It might not be ready until after Easter or early Summer!

I doubt they will put it (the house you are trying to buy) back on the market as there is no way they will be able to exchange quickly. 

There will be other mortgages available.....I wouldn’t let them bully you into exchanging right now. Indeed there will be plenty of other properties available in the New Year. 

Crazy talk. Just because you exchange doesn't mean you would be liable for anything that goes wrong with the house. I also doubt the vendors will cancel their own cover if exchange happens considering they don't have to insure a new build until completion as that's covered by the developers.

You could ask for a mortgage extension, many lenders offer 3-6 months based on the situation. I would probably stipulate that you would only exchange if there was a clause that the sellers move out even if their property is yet not ready. 

Liability between exchange and completion is not that clear cut. You still have to proceed with completion if the house burns down after exchange so it's wise to have insurance in place. Many lenders insist on insurance being in place from exchange. I had to send my solicitor my policy details before she would proceed with exchange. 

ETA: from citizens advice

https://www.citizensadvice.org.uk/housing/moving-and-improving-your-home/problems-with-buying-and-selling-a-home/#h-problems-with-the-property

A house may be damaged after contracts have been exchanged but before the sale is completed, for example, a burst pipe or a broken window. It is the seller’s responsibility to inform the buyer of any damage. It is however the buyer’s responsibility to insure the property from the date of exchange of contracts and to have the repairs carried out. The buyer will then have to make a claim on their insurance policy.

Simple fix, add it to the contract that the seller will insure the property and be liable for any repairs if anything should break. There is no legal stipulation that you are liable for anything that happens to the house after exchange, the sellers are still the legal owners. lenders want you to insure it asap as their capital is at risk. 

The lender may not release the mortgage unless the buyer has insurance in place so that "simple fix" may not be that simple, or even a fix. 

Lenders only require insurance to be in place at completion. What happens between exchange and completion isn't their concern.

MaryNB

user1977 said:

MaryNB said:

TheJP said:

MaryNB said:

TheJP said:

Continental said:

I wouldn’t exchange with a such a long time to completion.

You do realise that you would have to purchase buildings insurance at exchange? Anything major going wrong with the house would then be *your* responsibility.

The sellers should go into rented/AirBnB or stay with relatives if they are so desperate to exchange with a long lead time......with a shortage of building materials who is to say it the vendors new build will even be ready? It might not be ready until after Easter or early Summer!

I doubt they will put it (the house you are trying to buy) back on the market as there is no way they will be able to exchange quickly. 

There will be other mortgages available.....I wouldn’t let them bully you into exchanging right now. Indeed there will be plenty of other properties available in the New Year. 

Crazy talk. Just because you exchange doesn't mean you would be liable for anything that goes wrong with the house. I also doubt the vendors will cancel their own cover if exchange happens considering they don't have to insure a new build until completion as that's covered by the developers.

You could ask for a mortgage extension, many lenders offer 3-6 months based on the situation. I would probably stipulate that you would only exchange if there was a clause that the sellers move out even if their property is yet not ready. 

Liability between exchange and completion is not that clear cut. You still have to proceed with completion if the house burns down after exchange so it's wise to have insurance in place. Many lenders insist on insurance being in place from exchange. I had to send my solicitor my policy details before she would proceed with exchange. 

ETA: from citizens advice

https://www.citizensadvice.org.uk/housing/moving-and-improving-your-home/problems-with-buying-and-selling-a-home/#h-problems-with-the-property

A house may be damaged after contracts have been exchanged but before the sale is completed, for example, a burst pipe or a broken window. It is the seller’s responsibility to inform the buyer of any damage. It is however the buyer’s responsibility to insure the property from the date of exchange of contracts and to have the repairs carried out. The buyer will then have to make a claim on their insurance policy.

Simple fix, add it to the contract that the seller will insure the property and be liable for any repairs if anything should break. There is no legal stipulation that you are liable for anything that happens to the house after exchange, the sellers are still the legal owners. lenders want you to insure it asap as their capital is at risk. 

The lender may not release the mortgage unless the buyer has insurance in place so that "simple fix" may not be that simple, or even a fix. 

Lenders only require insurance to be in place at completion. What happens between exchange and completion isn't their concern.

No, many require it at exchange. I have a mortgage with Halifax and they required it be in place before I exchanged.

https://www.halifax.co.uk/mortgages/help-and-advice/exchange-of-contracts-explained.html
You will need to arrange buildings insurance for your new home before the exchange of contracts

TheJP

MaryNB said:

TheJP said:

MaryNB said:

TheJP said:

Continental said:

I wouldn’t exchange with a such a long time to completion.

You do realise that you would have to purchase buildings insurance at exchange? Anything major going wrong with the house would then be *your* responsibility.

The sellers should go into rented/AirBnB or stay with relatives if they are so desperate to exchange with a long lead time......with a shortage of building materials who is to say it the vendors new build will even be ready? It might not be ready until after Easter or early Summer!

I doubt they will put it (the house you are trying to buy) back on the market as there is no way they will be able to exchange quickly. 

There will be other mortgages available.....I wouldn’t let them bully you into exchanging right now. Indeed there will be plenty of other properties available in the New Year. 

Crazy talk. Just because you exchange doesn't mean you would be liable for anything that goes wrong with the house. I also doubt the vendors will cancel their own cover if exchange happens considering they don't have to insure a new build until completion as that's covered by the developers.

You could ask for a mortgage extension, many lenders offer 3-6 months based on the situation. I would probably stipulate that you would only exchange if there was a clause that the sellers move out even if their property is yet not ready. 

Liability between exchange and completion is not that clear cut. You still have to proceed with completion if the house burns down after exchange so it's wise to have insurance in place. Many lenders insist on insurance being in place from exchange. I had to send my solicitor my policy details before she would proceed with exchange. 

ETA: from citizens advice

https://www.citizensadvice.org.uk/housing/moving-and-improving-your-home/problems-with-buying-and-selling-a-home/#h-problems-with-the-property

A house may be damaged after contracts have been exchanged but before the sale is completed, for example, a burst pipe or a broken window. It is the seller’s responsibility to inform the buyer of any damage. It is however the buyer’s responsibility to insure the property from the date of exchange of contracts and to have the repairs carried out. The buyer will then have to make a claim on their insurance policy.

Simple fix, add it to the contract that the seller will insure the property and be liable for any repairs if anything should break. There is no legal stipulation that you are liable for anything that happens to the house after exchange, the sellers are still the legal owners. lenders want you to insure it asap as their capital is at risk. 

The lender may not release the mortgage unless the buyer has insurance in place so that "simple fix" may not be that simple, or even a fix. 

Also house insurance is in the range of like £100 to £200. Why take any risk for such a small amount of money? 

No lender i have used has definitively asked for insurance more of a recommendation. My comments were directed to the poster that stated if anything happened post exchange they would be liable. Which is not true.

user1977

MaryNB said:

user1977 said:

MaryNB said:

TheJP said:

MaryNB said:

TheJP said:

Continental said:

I wouldn’t exchange with a such a long time to completion.

You do realise that you would have to purchase buildings insurance at exchange? Anything major going wrong with the house would then be *your* responsibility.

The sellers should go into rented/AirBnB or stay with relatives if they are so desperate to exchange with a long lead time......with a shortage of building materials who is to say it the vendors new build will even be ready? It might not be ready until after Easter or early Summer!

I doubt they will put it (the house you are trying to buy) back on the market as there is no way they will be able to exchange quickly. 

There will be other mortgages available.....I wouldn’t let them bully you into exchanging right now. Indeed there will be plenty of other properties available in the New Year. 

Crazy talk. Just because you exchange doesn't mean you would be liable for anything that goes wrong with the house. I also doubt the vendors will cancel their own cover if exchange happens considering they don't have to insure a new build until completion as that's covered by the developers.

You could ask for a mortgage extension, many lenders offer 3-6 months based on the situation. I would probably stipulate that you would only exchange if there was a clause that the sellers move out even if their property is yet not ready. 

Liability between exchange and completion is not that clear cut. You still have to proceed with completion if the house burns down after exchange so it's wise to have insurance in place. Many lenders insist on insurance being in place from exchange. I had to send my solicitor my policy details before she would proceed with exchange. 

ETA: from citizens advice

https://www.citizensadvice.org.uk/housing/moving-and-improving-your-home/problems-with-buying-and-selling-a-home/#h-problems-with-the-property

A house may be damaged after contracts have been exchanged but before the sale is completed, for example, a burst pipe or a broken window. It is the seller’s responsibility to inform the buyer of any damage. It is however the buyer’s responsibility to insure the property from the date of exchange of contracts and to have the repairs carried out. The buyer will then have to make a claim on their insurance policy.

Simple fix, add it to the contract that the seller will insure the property and be liable for any repairs if anything should break. There is no legal stipulation that you are liable for anything that happens to the house after exchange, the sellers are still the legal owners. lenders want you to insure it asap as their capital is at risk. 

The lender may not release the mortgage unless the buyer has insurance in place so that "simple fix" may not be that simple, or even a fix. 

Lenders only require insurance to be in place at completion. What happens between exchange and completion isn't their concern.

No, many require it at exchange. I have a mortgage with Halifax and they required it be in place before I exchanged.

https://www.halifax.co.uk/mortgages/help-and-advice/exchange-of-contracts-explained.html
You will need to arrange buildings insurance for your new home before the exchange of contracts

That's just a page with a Ladybird guide to buyers about the normal procedures generally, it's not actually a requirement of the lender that you insure from exchange.

This is what the UK Lenders Handbook (the standard solicitors instructions) say about it:

"6.14 Insurance

6.14.1 You must make reasonable enquiries to satisfy yourself that buildings insurance has been arranged for the property from no later than completion.

You should remind the borrower that they:

• Must have buildings insurance in accordance with the requirements of the mortgage contract no later than completion, and
• Must maintain such buildings insurance throughout the mortgage term."

MaiTai

The standard Conditions of Sale (5th Edition) is the recommended conveyancing contract in use in England and Wales.

Clause 5.1.1 The responsibility for the building insurance for the property passes from vendor to purchaser immediately upon exchange of contracts.

Clause 5.1.2 The vendor is under no obligation to insure the property from the date of exchange.

There are a couple of exceptions for example if the obligation to maintain the insurance by the vendor is specifically written into the sales contract.

MaryNB

TheJP said:

MaryNB said:

TheJP said:

MaryNB said:

TheJP said:

Continental said:

I wouldn’t exchange with a such a long time to completion.

You do realise that you would have to purchase buildings insurance at exchange? Anything major going wrong with the house would then be *your* responsibility.

The sellers should go into rented/AirBnB or stay with relatives if they are so desperate to exchange with a long lead time......with a shortage of building materials who is to say it the vendors new build will even be ready? It might not be ready until after Easter or early Summer!

I doubt they will put it (the house you are trying to buy) back on the market as there is no way they will be able to exchange quickly. 

There will be other mortgages available.....I wouldn’t let them bully you into exchanging right now. Indeed there will be plenty of other properties available in the New Year. 

Crazy talk. Just because you exchange doesn't mean you would be liable for anything that goes wrong with the house. I also doubt the vendors will cancel their own cover if exchange happens considering they don't have to insure a new build until completion as that's covered by the developers.

You could ask for a mortgage extension, many lenders offer 3-6 months based on the situation. I would probably stipulate that you would only exchange if there was a clause that the sellers move out even if their property is yet not ready. 

Liability between exchange and completion is not that clear cut. You still have to proceed with completion if the house burns down after exchange so it's wise to have insurance in place. Many lenders insist on insurance being in place from exchange. I had to send my solicitor my policy details before she would proceed with exchange. 

ETA: from citizens advice

https://www.citizensadvice.org.uk/housing/moving-and-improving-your-home/problems-with-buying-and-selling-a-home/#h-problems-with-the-property

A house may be damaged after contracts have been exchanged but before the sale is completed, for example, a burst pipe or a broken window. It is the seller’s responsibility to inform the buyer of any damage. It is however the buyer’s responsibility to insure the property from the date of exchange of contracts and to have the repairs carried out. The buyer will then have to make a claim on their insurance policy.

Simple fix, add it to the contract that the seller will insure the property and be liable for any repairs if anything should break. There is no legal stipulation that you are liable for anything that happens to the house after exchange, the sellers are still the legal owners. lenders want you to insure it asap as their capital is at risk. 

The lender may not release the mortgage unless the buyer has insurance in place so that "simple fix" may not be that simple, or even a fix. 

Also house insurance is in the range of like £100 to £200. Why take any risk for such a small amount of money? 

No lender i have used has definitively asked for insurance more of a recommendation. My comments were directed to the poster that stated if anything happened post exchange they would be liable. Which is not true.

user1977 said:

MaryNB said:

user1977 said:

MaryNB said:

TheJP said:

MaryNB said:

TheJP said:

Continental said:

I wouldn’t exchange with a such a long time to completion.

You do realise that you would have to purchase buildings insurance at exchange? Anything major going wrong with the house would then be *your* responsibility.

The sellers should go into rented/AirBnB or stay with relatives if they are so desperate to exchange with a long lead time......with a shortage of building materials who is to say it the vendors new build will even be ready? It might not be ready until after Easter or early Summer!

I doubt they will put it (the house you are trying to buy) back on the market as there is no way they will be able to exchange quickly. 

There will be other mortgages available.....I wouldn’t let them bully you into exchanging right now. Indeed there will be plenty of other properties available in the New Year. 

Crazy talk. Just because you exchange doesn't mean you would be liable for anything that goes wrong with the house. I also doubt the vendors will cancel their own cover if exchange happens considering they don't have to insure a new build until completion as that's covered by the developers.

You could ask for a mortgage extension, many lenders offer 3-6 months based on the situation. I would probably stipulate that you would only exchange if there was a clause that the sellers move out even if their property is yet not ready. 

Liability between exchange and completion is not that clear cut. You still have to proceed with completion if the house burns down after exchange so it's wise to have insurance in place. Many lenders insist on insurance being in place from exchange. I had to send my solicitor my policy details before she would proceed with exchange. 

ETA: from citizens advice

https://www.citizensadvice.org.uk/housing/moving-and-improving-your-home/problems-with-buying-and-selling-a-home/#h-problems-with-the-property

A house may be damaged after contracts have been exchanged but before the sale is completed, for example, a burst pipe or a broken window. It is the seller’s responsibility to inform the buyer of any damage. It is however the buyer’s responsibility to insure the property from the date of exchange of contracts and to have the repairs carried out. The buyer will then have to make a claim on their insurance policy.

Simple fix, add it to the contract that the seller will insure the property and be liable for any repairs if anything should break. There is no legal stipulation that you are liable for anything that happens to the house after exchange, the sellers are still the legal owners. lenders want you to insure it asap as their capital is at risk. 

The lender may not release the mortgage unless the buyer has insurance in place so that "simple fix" may not be that simple, or even a fix. 

Lenders only require insurance to be in place at completion. What happens between exchange and completion isn't their concern.

No, many require it at exchange. I have a mortgage with Halifax and they required it be in place before I exchanged.

https://www.halifax.co.uk/mortgages/help-and-advice/exchange-of-contracts-explained.html
You will need to arrange buildings insurance for your new home before the exchange of contracts

That's just a page with a Ladybird guide to buyers about the normal procedures generally, it's not actually a requirement of the lender that you insure from exchange.

This is what the UK Lenders Handbook (the standard solicitors instructions) say about it:

"6.14 Insurance

6.14.1 You must make reasonable enquiries to satisfy yourself that buildings insurance has been arranged for the property from no later than completion.

You should remind the borrower that they:

• Must have buildings insurance in accordance with the requirements of the mortgage contract no later than completion, and
• Must maintain such buildings insurance throughout the mortgage term."

I've already quote Halifax above. It's a requirement of theirs and my solicitor checked that I had it before I exchange. I didn't say all lenders, I said some. HSBC says most require it.

HSBC Insurance

It’s not a legal requirement, but most mortgage lenders insist that you to have buildings insurance in place when you exchange contracts. This is when you legally own the property and are responsible for the building. 

HSBC Mortgages

Your solicitor or licensed conveyancer will exchange contracts with the seller’s conveyancer, and you’ll hand over your deposit for the house. The agreement is now legally binding, and you’ll need buildings insurance in place at this point. 

Nationwide
Remember, you'll need to arrange for buildings insurance on your new home before you can exchange contracts.

Santander
If you’re moving home, when you’re happy with the contract and you’ve signed it, your solicitor or licensed conveyancer will ‘exchange’ your contract with the seller’s solicitor - this is then legally binding. The solicitors will then agree a completion date. At this point, you’ll also need home insurance. Buildings insurance is a requirement of your mortgage and is essential to protect you against damage caused by things like fire and flooding etc

Natwest

When you exchange, you'll sign a contract that legally commits you to buying the property. You'll need to pay your deposit, the signed contract will be exchanged with the seller's solicitor or conveyancer, and the two side will agree a date to complete the sale.

At this point your solicitor or conveyancer will have carried out all necessary land searches. You'll need to have buildings insurance in place too, in case something happens to the property before you move in.

RBS

Once your offer has been accepted, your solicitor and the seller's solicitor will deal with the formal process of transferring title and firming up the deal, known as concluding missives. Once this has happened you'll be formally bound to purchasing the property.

At this point your solicitor or conveyancer will have carried out all necessary land searches. You'll need to have buildings insurance in place too, in case something happens to the property before you move in.

Barclays is the only one of the major lenders I checked that requires it at completion

Your mortgage adviser will have already spoken to you about arranging buildings, content and life insurance – your buildings cover needs to start on your completion date. If you haven’t already arranged home contents and life insurance, you should consider that now. 

Thrugelmir

user1977 said:

MaryNB said:

user1977 said:

MaryNB said:

TheJP said:

MaryNB said:

TheJP said:

Continental said:

I wouldn’t exchange with a such a long time to completion.

You do realise that you would have to purchase buildings insurance at exchange? Anything major going wrong with the house would then be *your* responsibility.

The sellers should go into rented/AirBnB or stay with relatives if they are so desperate to exchange with a long lead time......with a shortage of building materials who is to say it the vendors new build will even be ready? It might not be ready until after Easter or early Summer!

I doubt they will put it (the house you are trying to buy) back on the market as there is no way they will be able to exchange quickly. 

There will be other mortgages available.....I wouldn’t let them bully you into exchanging right now. Indeed there will be plenty of other properties available in the New Year. 

Crazy talk. Just because you exchange doesn't mean you would be liable for anything that goes wrong with the house. I also doubt the vendors will cancel their own cover if exchange happens considering they don't have to insure a new build until completion as that's covered by the developers.

You could ask for a mortgage extension, many lenders offer 3-6 months based on the situation. I would probably stipulate that you would only exchange if there was a clause that the sellers move out even if their property is yet not ready. 

Liability between exchange and completion is not that clear cut. You still have to proceed with completion if the house burns down after exchange so it's wise to have insurance in place. Many lenders insist on insurance being in place from exchange. I had to send my solicitor my policy details before she would proceed with exchange. 

ETA: from citizens advice

https://www.citizensadvice.org.uk/housing/moving-and-improving-your-home/problems-with-buying-and-selling-a-home/#h-problems-with-the-property

A house may be damaged after contracts have been exchanged but before the sale is completed, for example, a burst pipe or a broken window. It is the seller’s responsibility to inform the buyer of any damage. It is however the buyer’s responsibility to insure the property from the date of exchange of contracts and to have the repairs carried out. The buyer will then have to make a claim on their insurance policy.

Simple fix, add it to the contract that the seller will insure the property and be liable for any repairs if anything should break. There is no legal stipulation that you are liable for anything that happens to the house after exchange, the sellers are still the legal owners. lenders want you to insure it asap as their capital is at risk. 

The lender may not release the mortgage unless the buyer has insurance in place so that "simple fix" may not be that simple, or even a fix. 

Lenders only require insurance to be in place at completion. What happens between exchange and completion isn't their concern.

No, many require it at exchange. I have a mortgage with Halifax and they required it be in place before I exchanged.

https://www.halifax.co.uk/mortgages/help-and-advice/exchange-of-contracts-explained.html
You will need to arrange buildings insurance for your new home before the exchange of contracts

That's just a page with a Ladybird guide to buyers about the normal procedures generally, it's not actually a requirement of the lender that you insure from exchange.

This is what the UK Lenders Handbook (the standard solicitors instructions) say about it:

"6.14 Insurance

6.14.1 You must make reasonable enquiries to satisfy yourself that buildings insurance has been arranged for the property from no later than completion.

You should remind the borrower that they:

• Must have buildings insurance in accordance with the requirements of the mortgage contract no later than completion, and
• Must maintain such buildings insurance throughout the mortgage term."

As far as the borrower is concerned. The over riding requirement will be the terms and conditions contained in the mortgage offer document. Not the UK lenders handbook. 

user1977

Thrugelmir said:

user1977 said:

MaryNB said:

user1977 said:

MaryNB said:

TheJP said:

MaryNB said:

TheJP said:

Continental said:

I wouldn’t exchange with a such a long time to completion.

You do realise that you would have to purchase buildings insurance at exchange? Anything major going wrong with the house would then be *your* responsibility.

The sellers should go into rented/AirBnB or stay with relatives if they are so desperate to exchange with a long lead time......with a shortage of building materials who is to say it the vendors new build will even be ready? It might not be ready until after Easter or early Summer!

I doubt they will put it (the house you are trying to buy) back on the market as there is no way they will be able to exchange quickly. 

There will be other mortgages available.....I wouldn’t let them bully you into exchanging right now. Indeed there will be plenty of other properties available in the New Year. 

Crazy talk. Just because you exchange doesn't mean you would be liable for anything that goes wrong with the house. I also doubt the vendors will cancel their own cover if exchange happens considering they don't have to insure a new build until completion as that's covered by the developers.

You could ask for a mortgage extension, many lenders offer 3-6 months based on the situation. I would probably stipulate that you would only exchange if there was a clause that the sellers move out even if their property is yet not ready. 

Liability between exchange and completion is not that clear cut. You still have to proceed with completion if the house burns down after exchange so it's wise to have insurance in place. Many lenders insist on insurance being in place from exchange. I had to send my solicitor my policy details before she would proceed with exchange. 

ETA: from citizens advice

https://www.citizensadvice.org.uk/housing/moving-and-improving-your-home/problems-with-buying-and-selling-a-home/#h-problems-with-the-property

A house may be damaged after contracts have been exchanged but before the sale is completed, for example, a burst pipe or a broken window. It is the seller’s responsibility to inform the buyer of any damage. It is however the buyer’s responsibility to insure the property from the date of exchange of contracts and to have the repairs carried out. The buyer will then have to make a claim on their insurance policy.

Simple fix, add it to the contract that the seller will insure the property and be liable for any repairs if anything should break. There is no legal stipulation that you are liable for anything that happens to the house after exchange, the sellers are still the legal owners. lenders want you to insure it asap as their capital is at risk. 

The lender may not release the mortgage unless the buyer has insurance in place so that "simple fix" may not be that simple, or even a fix. 

Lenders only require insurance to be in place at completion. What happens between exchange and completion isn't their concern.

No, many require it at exchange. I have a mortgage with Halifax and they required it be in place before I exchanged.

https://www.halifax.co.uk/mortgages/help-and-advice/exchange-of-contracts-explained.html
You will need to arrange buildings insurance for your new home before the exchange of contracts

That's just a page with a Ladybird guide to buyers about the normal procedures generally, it's not actually a requirement of the lender that you insure from exchange.

This is what the UK Lenders Handbook (the standard solicitors instructions) say about it:

"6.14 Insurance

6.14.1 You must make reasonable enquiries to satisfy yourself that buildings insurance has been arranged for the property from no later than completion.

You should remind the borrower that they:

• Must have buildings insurance in accordance with the requirements of the mortgage contract no later than completion, and
• Must maintain such buildings insurance throughout the mortgage term."

As far as the borrower is concerned. The over riding requirement will be the terms and conditions contained in the mortgage offer document. Not the UK lenders handbook. 

So find us a mortgage offer which requires it. And/or explain why the lender would care, given they're not a party to the contract. They obviously don't care enough to bother instructing the solicitors to check insurance is in place at exchange.