Lack of Building Regulation Consent Indemnity Insurance Bank conveyancing requirements

Birmingham Midshires and Accord, in common with many mortgage companies, set their own specific instructions when it comes to lack of building regulation consent indemnity insurance. This page is designed to help property law practitioners on the different mortgage company solicitors panel where the title for the the property to be mortgaged includes lack of building regulation consent. It is not a substitute for checking the Council of Mortgage Lenders’ handbook requirements for each mortgage company, for example Santander, RBS or Lloyds TSB. The information on this page is not focused on lack of building regulation consent indemnity insurance requirements.

Need help with lack of building regulation consent indemnity insurance from your lender?

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Barnsley BS and Coventry BS as with most mortgage companies, instructions are such that where lack of building regulation consent indemnity insurance is to be put on risk:

• you is duty bound to spell out to the borrower that the borrower is obliged to adhere to any conditions of the lack of building regulation consent indemnity insurance policy and that the mortgagor should notify the mortgage company of any notice or potential claim in respect of the policy
• you must approve the terms of the lack of building regulation consent policy on behalf of the mortgage company
• the lack of building regulation consent indemnity insurance policy must be placed on risk at no expense to the lender
• the minimum level of cover for the policy must satisfy the requirements for the mortgage company (See Part II Handbook requirements )
• the lack of building regulation consent indemnity insurance policy should not incorporate conditions that you are aware would void or prejudice the interests of the bank
• the lack of building regulation consent indemnity insurance policy should always be for the benefit of the lender and, if possible, for the benefit of the mortgagor and any future registered proprietor or bank. If the mortgagor will not be covered by the lack of building regulation consent indemnity insurance policy, you must advise the borrower of this fact.
• you must disclose to the insurer all relevant information which you have acquired
• your firm must supply a copy of the lack of building regulation consent indemnity insurance to the borrower and explain to the mortgagor why the lack of building regulation consent indemnity insurance policy was effected and that a further policy may be required if there is further lending against the mortgaged property

As to the level of cover for the lack of building regulation consent indemnity insurance policy (or for that matter any indemnity insurance), consider the following sampling of Section 9.2 of the Part 2 requirements for mortgage companies:

Lack of Building Regulation Consent Contingency Insurance : Reflections

The full terms, conditions and exclusions for lack of building regulation consent indemnity insurance are set out in the policy document. Conveyancing solicitors should point the borrower to the lack of building regulation consent indemnity insurance policy itself. Lack of Building Regulation Consent indemnity insurance is designed to provide indemnity in respect of the risks specified in the policy schedule - so you should check the schedule to ensure it is in order. The lifetime of this non-investment insurance agreement is in perpetuity unless otherwise stated in the lack of building regulation consent indemnity insurance policy. It is well worth checking that the time frame is correct.

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Significant features and benefits of lack of building regulation consent Contingency insurance :

This policy would usually provide protection from financial loss that might arise in the event of a third party making a cliam in respect of the risks identified in the policy document. Lack of Building Regulation Consent indemnity insurance Policies should be checked for the following

• The cost of altering or demolishing all, or part of the development and the reinstatement of the land, insofar as such alteration, demolition or re-instatement is made necessary by court order.
• Money paid with the written consent of the insurance company to free the land from the risks specified in the lack of building regulation consent insurance.
• Reimbursement for compensation incurred in any proceedings in respect of the risks specified in the lack of building regulation consent indemnity insurance, including solicitors charges.
• The cost of works (including professional fees) for the purpose of the development begun, or contracted for, prior to proceedings for the enforcement of the risks specified in the lack of building regulation consent insurance, to the extent that such costs are rendered abortive by court decision.
• Market value reduction due to the successful enforcement of the risks specified in the lack of building regulation consent indemnity insurance.
• All ancillary costs and expenses incurred by the Insured with the written consent of the relevant insurance company

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Always consider what is not included in the lack of building regulation consent insurance e.g. does the policy cover any property that has been altered within the year prior to the policy being put on risk? Does it cover legal costs?

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Lack of Building Regulation Consent Indemnity Insurance has limitations - Other considerations

There may be consequences arising from the enforcement of the risks identified in the lack of building regulation consent policy which are not adequately covered by financial compensation.

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WhenIBought

Has missing building regulations paperwork come to light long after you bought, perhaps for an extension or conversion completed by a previous owner? If an indemnity policy was arranged, what were you told about the missing documents and the scope of the cover? Visit WhenIBought's missing building regulations approval page to explore the issue and tell us about your purchase.

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The content set out above is in relation to properties in England and Wales.