Bespoke mortgage indemnity policy requirement from Nationwide 28 April 2022 at 5:21PM in Insurance & life assurance 1 reply 116 views

MsJoss

Hi,

We are trying to sell our flat and Nationwide are the lender for our buyer. Our flat is a leasehold property and the lease contains a forfeiture clause but no mortgage protection clause.

Nationwide have said they require an indemnity policy or a Deed of Variation to cover this. Our freeholder will not agree to a Deed of Variation so we are trying to find a suitable indemnity policy.

Unfortunately Nationwide requires that the indemnity policy places no obligations on them to update the insurer. Our solicitor has tried multiple insurance companies but none will agree to that requirement. 

Has anyone experienced this before and found a suitable indemnity policy? Our solicitor, our buyer's solicitor, and both estate agents have never experienced this before. We’re about to lose our sale and onward purchase because of this and are at our wits' end.

Many thanks for any advice or guidance.

kingstreet

I'd post this on HBR&S (Home Buying Etc) as you are more likely to find members familiar with this type of cover.