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    • Gibbons4
    • By Gibbons4 12th Feb 18, 9:35 AM
    • 4Posts
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    Gibbons4
    First time buyer help!
    • #1
    • 12th Feb 18, 9:35 AM
    First time buyer help! 12th Feb 18 at 9:35 AM
    Hello all,

    Me and my partner have just been accepted for a share to buy mortgage... However, the lender is asking for an indemnity policy payment of 188 relating to the sewage works...

    It is a new build in a new estate and has only recently been finished, so my question basically is do we need to pay it, or is it something that the housing association/sellers should be paying for, as the sewage works on the estate are not managed by us the buyers??

    Any help would be greatly appreciated as my other half is at her wits end with it and I cannot make sense of the policy myself!

    To make matters worse, our solicitor is saying that we could use another lender as they won't ask for it, but it's been going on so long now we want to just get it sorted and get into the property.

    Thanks in advance.

    Kind regards,

    Pete
Page 1
    • kingstreet
    • By kingstreet 12th Feb 18, 10:28 AM
    • 33,559 Posts
    • 18,196 Thanks
    kingstreet
    • #2
    • 12th Feb 18, 10:28 AM
    • #2
    • 12th Feb 18, 10:28 AM
    If the lender is asking for it, you appear to have no choice but to provide it.

    As to who pays for it? Who knows? There is no hard and fast rule. If you want it dealt with quickly, pay it.

    If you want to protract things more and have the HA think about it for two or three months...
    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.
    • Gibbons4
    • By Gibbons4 12th Feb 18, 10:38 AM
    • 4 Posts
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    Gibbons4
    • #3
    • 12th Feb 18, 10:38 AM
    • #3
    • 12th Feb 18, 10:38 AM
    Hi kingstreet,

    Thank you for your reply.

    As we only own 40% of the property, we are trying to see if the HA will pay for the other 60%, or if they have any documentation declaring that the sewage works conform to the water authorities standards to waive the policy all together.

    This is the reason for the policy:

    This Adoption of Sewer Indemnity provides cover against potential liability for future costs demanded by the
    relevant water authority to bring the sewer or drain connected to the property up to an adoptable standard.
    It is designed to ensure you are indemnified against loss
    arising from a claim under the policy, subject to the policy
    terms and conditions.

    I'm reading this as if it already has been verified by the water authorities then we don't need to pay it?

    Thanks again.
    • Thrugelmir
    • By Thrugelmir 12th Feb 18, 10:53 AM
    • 58,925 Posts
    • 52,250 Thanks
    Thrugelmir
    • #4
    • 12th Feb 18, 10:53 AM
    • #4
    • 12th Feb 18, 10:53 AM

    but it's been going on so long now we want to just get it sorted and get into the property.
    Originally posted by Gibbons4
    For the amount involved seems simplest just to pay the amount required.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • kingstreet
    • By kingstreet 12th Feb 18, 10:58 AM
    • 33,559 Posts
    • 18,196 Thanks
    kingstreet
    • #5
    • 12th Feb 18, 10:58 AM
    • #5
    • 12th Feb 18, 10:58 AM
    I'm reading this as if it already has been verified by the water authorities then we don't need to pay it?
    Originally posted by Gibbons4
    You would need to ask your solicitor to verify this.
    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.
    • Gibbons4
    • By Gibbons4 12th Feb 18, 11:00 AM
    • 4 Posts
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    Gibbons4
    • #6
    • 12th Feb 18, 11:00 AM
    • #6
    • 12th Feb 18, 11:00 AM
    I know it's quicker to pay it, but I refuse to pay for something that I don't need to pay for...

    As for the solicitors, they're currently about as much use as a chocolate tea pot!
    • enthusiasticsaver
    • By enthusiasticsaver 12th Feb 18, 1:19 PM
    • 6,609 Posts
    • 13,859 Thanks
    enthusiasticsaver
    • #7
    • 12th Feb 18, 1:19 PM
    • #7
    • 12th Feb 18, 1:19 PM
    So your choices are either you move to another lender and take the chance they also won't ask for it or ask the HA if they will contribute (unlikely) or just pay it. Unfortunately this trend for asking for indemnities for various things seems to be getting more common. Is it because the estate is not yet finished and the water authorities have not yet adopted the sewage pipes? Can you or your solicitor check with the water authorities as to when they are likely to adopt them?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Gibbons4
    • By Gibbons4 12th Feb 18, 1:42 PM
    • 4 Posts
    • 0 Thanks
    Gibbons4
    • #8
    • 12th Feb 18, 1:42 PM
    • #8
    • 12th Feb 18, 1:42 PM
    Hi,

    Yes this is the reason for the indemnity, I have asked my HA to find out when this is likely to take place so will await their reply.

    Thanks!
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