Bespoke mortgage indemnity policy requirement from Nationwide


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.


  • kingstreetkingstreet Forumite
    38K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I'd post this on HBR&S (Home Buying Etc) as you are more likely to find members familiar with this type of cover.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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