Natwest Indemnity Policy

RedCannon94

Hey all.

Currently have an offer from Natwest and recently our solictor mentioned there's an issue with the ground rent potentially increase beyond £250 in the future. Naturally they will approach the management company to see what can be done in terms of a deed of variation.

Does anyone know if Natwest accept an Indemnity Policy if this wasn't possible? I've heard some lenders dont accept it.

Also typically in this situation, who fronts the bill?

simon_or

Usually the vendor in my experience buying/selling flats but it's up for negotiation.

Your solicitor should be able to answer the question about whether an indemnity policy will do the trick if the freeholder doesn't agree to a variation.

RedCannon94

simon_or said:

Usually the vendor in my experience buying/selling flats but it's up for negotiation.

Your solicitor should be able to answer the question about whether an indemnity policy will do the trick if the freeholder doesn't agree to a variation.

Yeah currently awaiting a response on this. 

We wouldn't be able to afford a few grand to get a DoV sorted so an indemnity policy would be preference if push came to shove.

RedCannon94

Another question on this. With our offer due to be sent to the solicitor any day now, will they likely inform Natwest of the situation or will they address it first of all?

Wouldn't want Natwest withdrawing the offer when the solicitor is pretty confident she can find a solution.

user1977

In practice lenders don't usually "withdraw the offer", it's just a question of whether the solicitor is able to sign off that everything complies with the lender's requirements to draw down the loan funds. If they can't then the offer just sits there until it expires.

RedCannon94

user1977 said:

In practice lenders don't usually "withdraw the offer", it's just a question of whether the solicitor is able to sign off that everything complies with the lender's requirements to draw down the loan funds. If they can't then the offer just sits there until it expires.

Ahh okay that's fine. Found out this morning that the company who manage the ground rent actually agreed a few years back to approve any DoVs to remove the increases so should be a simple job for the solicitor in the end