Indemnity Policy Query

HayleyB26

Hi all,
When we purchased our property in 2020, we had an indemnity policy to protect us in regard to land to the side of the property, which the previous owners had adverse possession of. 

We are considering applying to purchase the land, so that it is included in the title plan officially. Is it worth doing? What are the risks of doing this? 

user1977

Contacting the owner would almost certainly invalidate your indemnity insurance. Didn't your solicitor explain this sort of thing at the time of your purchase?

HayleyB26

Yes it was all explained, I'm just wondering if it is worth purchasing it officially, or keeping the policy? 

user1977

The risk is that you contact the owner, they don't sell to you, and you then don't have cover under the policy either.

HayleyB26

Yeah that's my worry. The land in question is currently owned by the local authority. I'm a detached property on a corner plot, where the side of my garden is made up of this land, up to the public highway. It has been like this since before 2000. It wouldn't be suitable for any other use and it doesn't impose on any neighbours. Just trying to weigh up my options.

Is there a way I could anonymously find out, without risking my indemnity policy? 

user1977

Find out what?

HayleyB26

Whether or not the council would be willing to sell.

Personally, I'd rather be legit and officially own the land. But perhaps that's me being pessimistic and the indemnity policy is more than sufficient.

user1977

HayleyB26 said:

Whether or not the council would be willing to sell.

How would you do that? Contact the council anonymously and ask them whether they'd like to sell the strip of land next to 21 Acacia Avenue (the only person who'd be interested in buying it being the owner of 21 Acacia Avenue who has made it into their garden...) and somehow get them into a binding contract to sell the land to the mystery anonymous buyer?

No, you can't do that.

ThisIsWeird

Hayley, (or other forumite) could you explain/do you know how the policy currently 'protects' you?

If the council were to become aware of the situation (I presume the land is now fenced as part of the garden?) by, say, the word of a neighbour or just realisation, how would the policy protect you? I presume it wouldn't actually be capable of preventing the council taking it back?

These policies are a mystery to me.

user1977

ThisIsWeird said:

Hayley, (or other forumite) could you explain/do you know how the policy currently 'protects' you?

If the council were to become aware of the situation (I presume the land is now fenced as part of the garden?) by, say, the word of a neighbour or just realisation, how would the policy protect you? I presume it wouldn't actually be capable of preventing the council taking it back?

These policies are a mystery to me.

This might help jog your memory:

https://forums.moneysavingexpert.com/discussion/comment/79573679/#Comment_79573679

(different risk here of course, but same principles apply)

Section62

HayleyB26 said:

Yeah that's my worry. The land in question is currently owned by the local authority. I'm a detached property on a corner plot, where the side of my garden is made up of this land, up to the public highway. It has been like this since before 2000. It wouldn't be suitable for any other use and it doesn't impose on any neighbours. Just trying to weigh up my options.

Is there a way I could anonymously find out, without risking my indemnity policy? 

If the land is between your property and the highway then there's a good chance the land is also part of the highway.

How old is the house, and was it originally built by the council?

This is relevant because if the land is highway then you can't (ever) get adverse possession.