HELP PLEASE: the new build I am buying is in breach of covenant. Should I pull out?

Slinky

Are you sure the limited company is the same one trading when the house was built? Company names can be reused. If you look on companies house website you can find out the date the company was formed.

House13

What exactly would an indemnity policy cover in this situation?

user1977

House13 said:

What exactly would an indemnity policy cover in this situation?

If somebody came out of the woodwork claiming they had the right to enforce the covenant, it would cover the costs of:-

• the insurers' solicitors arguing that they don't have the right to enforce it

• if that fails, whatever it costs to pay them off to discharge the covenant (like I said above, that's more likely to be what they're after then actually demolishing the house)

• ultimately, if the house had to be demolished, it would reimburse the OP for whatever they paid (less whatever the now mostly-useless plot of land was worth)

House13

• ultimately, if the house had to be demolished, it would reimburse the OP for whatever they paid (less whatever the now mostly-useless plot of land was worth)

Is that true? My solicitor seemed to suggest otherwise. For a policy that costs a few hundred pounds the insurer is taking a big risk.

user1977

House13 said:

• ultimately, if the house had to be demolished, it would reimburse the OP for whatever they paid (less whatever the now mostly-useless plot of land was worth)

Is that true? My solicitor seemed to suggest otherwise. For a policy that costs a few hundred pounds the insurer is taking a big risk.

Yes, it's true - that's why the value insured is (generally) the current purchase price of the property. It is of course incredibly unlikely that that would be the outcome (the beneficiary of the covenant would most likely just be after some cash rather than the satisfaction of seeing your house torn down), and they're probably selling thousands of these policies for every significant claim made.

jimbog

p00hsticks said:

lincroft1710 said:

Doozergirl said:

The 1950s isn't exactly recent.  

Oi. DG, some of us can remember the 1950s quite vividly!!

As a recent meme that was pointed out to me said - it;s as far back from today to 1970 as it is from 1970 to 1918 - which is true but scary if you are of a certain age like me.

And if you are like me and have no problem with the Beatles blaring out of you car on the way to work it is the same as someone in the 1960's getting thrilled listening to Victorian music