Home Selling & Buying Protection Insurance

Habib2342

Hello,

I'm considering taking out the above insurance as I'm looking to sell my leasehold flat and purchase another one.

My buyer will either be  a deposit+mortgage (residential or btl) or ideally a cash buyer. The former carries more risk as there could be issues with the deposit or mortgage meaning they're not proceedable. Hopefully a cash buyer will materialise.

On the buying side, the main concern I have is the possibility of being gazumped. I don't want to be in a position where I've spent money on legal fees and then be informed the deal is not going ahead because the seller has accepted a higher offer. There is one property I am looking to make an offer on but when I asked the agent if the property would be taken off the market to allow conveyancing to follow through, he said potentially. That to me implies the seller would still be holding out for a higher offer and so the flat would still be on the market. Presumably they would've gone sole rather than multiple agency when advertising to protect their bottom line as well.

Is it worth taking out or am I being overly cautious. Can't put my flat on the market until the holiday period is out of the way.  The agent that is marketing my flat said its not worth it in the current market but if I wanted peace of mind to cover all possible angles, then its worth taking out.


Thanks. 

user1977

Search for previous threads on this - the insurance policies cover only a restricted range of scenarios, and like any other insurance you're unlikely to be beating the "house" (otherwise how do the insurers make a profit) so you may as well save your money.

anselld

It isnt really a case of seller holding out for a higher offer it is holding out for an offer which is proceedable.  You are not currently proceedable as you have not even put yours on the market so you cant really expect seller to withdraw from market and wait for you.

poseidon1

Habib2342 said:

Hello,

I'm considering taking out the above insurance as I'm looking to sell my leasehold flat and purchase another one.

My buyer will either be  a deposit+mortgage (residential or btl) or ideally a cash buyer. The former carries more risk as there could be issues with the deposit or mortgage meaning they're not proceedable. Hopefully a cash buyer will materialise.

On the buying side, the main concern I have is the possibility of being gazumped. I don't want to be in a position where I've spent money on legal fees and then be informed the deal is not going ahead because the seller has accepted a higher offer. There is one property I am looking to make an offer on but when I asked the agent if the property would be taken off the market to allow conveyancing to follow through, he said potentially. That to me implies the seller would still be holding out for a higher offer and so the flat would still be on the market. Presumably they would've gone sole rather than multiple agency when advertising to protect their bottom line as well.

Is it worth taking out or am I being overly cautious. Can't put my flat on the market until the holiday period is out of the way.  The agent that is marketing my flat said its not worth it in the current market but if I wanted peace of mind to cover all possible angles, then its worth taking out.


Thanks. 

Your best bet is to study terms and conditions per example below -

https://www.rhinohomeprotect.com/home-buyers-insurance/essential-property-protection/


I used Rhino back in 2020 when trying to make a cash purchase of a house. Seller withdraw property on the eve of exchange of contracts giving no reasons. Rhino paid out my solicitor fees in entirety ( around £725) once proof that the deal was dead in the water. Premium at the time was £64, so prices have increased bit since then.

Given England's dysfunctional conveyancing system I would neither buy or sell without cover.

saajan_12

Habib2342 said:

Is it worth taking out or am I being overly cautious. Can't put my flat on the market until the holiday period is out of the way.  The agent that is marketing my flat said its not worth it in the current market but if I wanted peace of mind to cover all possible angles, then its worth taking out.

Insurance is jut swapping (A) a potential cost (lost fees) for (B) a smaller definite cost (insurance premiums) in certain circumstances. Its not really about being safer or peace of mind, since the worst case (lost fees) isn't disasterous. Any policy would cover a set list of causes, it can't cover everything (else it'd be ripe for fraud) so there's still a risk, albeit reduced. 

Ultimately its up to you whether you prefer (A) or (B)

FoundTheRightHome

It’s basically a trade-off between a small certain cost now and the risk of losing money later if the deal falls through before exchange. These policies usually cover specific scenarios e.g. gazumping, chain collapse, mortgage offer issues and up to a capped amount — they don’t cover every reason a sale or purchase can fail. The wording and exclusions matter.

For some people, they’re worth it purely for peace of mind, especially if losing survey and legal fees would hurt financially. For others, it’s a risk they’re comfortable carrying themselves.

Suggest worth checking:

• exactly what causes are covered
• claim limits vs your likely costs
• timing rules as some have to be taken out very early

They don’t stop chains collapsing — they just potentially soften the financial impact if one does.