leasehold property

dixie118

Im currently in the process of buying a house, it is a leasehold property.

i have recently found out that there is a descrepancy with the lease and therefore i will have to be covered by an indemnity insurance.

does anyone know if this is a common occurance or whether this is risky? my mortgage lender may withdraw their offer as they do not usually accept insurance indemnity.

any thoughts?

Richard_Webster

Can't really comment unless I know what the discrepancy is. Please explain a bit more.

chrisw

I've just bought a house with a similar thing, actually my father-in-laws old house. He had an extension built about 20 years ago but didn't obtain the leaseholders consent. My solictor advised me to take out the indemnity insurance which is a one-off payment of £240 but continues indefinitely and stays with the house deeds when the house is subsequently sold.

Ironically. one of the conditions of the insurance is that there must have been no contact with the leaseholders about the extension for so many years previously. Therefore, if you simply write to them to ask for their permission then you can't take out the insurance, which is fine if they say yes, but not so good if they say no or demand a huge sum to say ok.

I had no issues with the mortgage and I don't foresee any problems when I sell.

chappers

Also bear in mind this insurance is indemnity insurance and just that it indemnifies you or any subsequent owner from costs in the event that the freeholder tries to exercise his rights and in some cases against loss.
However it has no special powers to ensure you keep your extension, say for example the freeholder takes you to court to remove the extension and wins.Tehn it's goodbye extension , you would be covered for all the legal costs, probably the costs of complying with the order and in some cases any loss as a result of the enforcement e.g possible drop in value of your property

Richard_Webster

Interesting couple of posts about possible problems if there has been an extension not approved by landlord but OP hasn't actually told us yet what the problem is - it could be something different.

Missing landlord?
Good Leasehold Title?

Please let us know...