Matrimonial Homes Act Indemnity Insurance Mortgage Company conveyancing requirements
Yorkshire Building Society and Santander, like most mortgage companies, set their own requirements when it comes to matrimonial homes act indemnity insurance. The content herein aims to help conveyancing practitioners on the different mortgage company approved list of panel lawyers where the title for the the property to be mortgaged contains matrimonial homes act. It is not a substitute for checking the CML handbook requirements for each mortgage company, for example Coventry BS, Skipton or Bank of Scotland. The information on this page is not focused on matrimonial homes act indemnity insurance requirements.
Need help with matrimonial homes act indemnity insurance from your lender?
Godiva Mortgages and Nationwide as with the majority of banks, obligations require that where matrimonial homes act indemnity insurance is to be put on risk:
- the matrimonial homes act indemnity insurance policy should always be in favor of the bank and, wherever possible, for the benefit of the borrower and any subsequent owner or mortgagee. If the borrower will not be covered by the matrimonial homes act indemnity insurance policy, you must advise the mortgagor of this fact.
- you is duty bound to point out to the borrower that the borrower is obliged to adhere to any conditions of the matrimonial homes act indemnity insurance policy and that the mortgagor should notify the bank of any notice or potential claim in respect of the policy
- you must provide a copy of the matrimonial homes act indemnity insurance to the borrower and explain to the borrower why the matrimonial homes act indemnity insurance policy was effected and that a further policy could be required if there is additional borrowing against the security of the property
- the matrimonial homes act indemnity insurance policy should not incorporate terms which you recognise would invalidate or compromise the interests of the mortgage company
- your practice must approve the terms of the matrimonial homes act policy on behalf of the bank
- the matrimonial homes act indemnity insurance policy should be effected without charge to the mortgage company
- the level of indemnity must meet the requirements for the lender (See Part II Handbook requirements )
- your practice must disclose to the insurer all relevant information which you have gathered
| Lender | Requirement |
|---|---|
| Accord Mortgages | An amount at least equal to the amount of the mortgage advance. Any indemnity insurance policy must protect the borrowers, any successors in title and any mortgagee. |
| Aldermore Bank | 110% of the purchase price or valuation, whichever is greater. Any indemnity insurance policy must be for our benefit, that of any transferee/assignee (legal or equitable) of the mortgage and also the borrower(s). Where a property is being sold at undervalue and an equity gift is being provided, the conveyancer must ensure the seller obtains an Insolvency Act Indemnity Insurance Policy and provides evidence to you, so that you are comfortable an appropriate policy is in place to Aldermore’s satisfaction. This indemnity insurance aims to cover Aldermore against any future claims by creditors of the seller that may challenge the sale. |
| Coutts Finance | The open market value of the property according to the valuation report. |
| Darlington Building Society | The higher of value or purchase price of the property. |
| Dudley Building Society | Purchase price or valuation, whichever is higher. |
| Fleet Mortgages | An amount at least equal to the valuation of the property. |
| Foundation Home loans | An amount equal to 110% of the valuation or purchase price - whichever is the greater. |
| Furness Building Society | Property valuation or purchase price, whichever the greater. |
| Habito | Higher of purchase price or valuation |
| Investec | The open market value of the property according to the valuation report. |
| Kent Reliance | An amount at least equal to 110% of the mortgage valuation. |
| Keystone Property Finance | An amount equal to 110% of the valuation or purchase price - whichever is the greater |
| Landbay Partners | An amount equal to 100% of the property valuation or purchase price (whichever is greater) plus 10%. |
| Metro Bank | The open market value of the property according to the valuation report. |
| Perenna | The higher of the purchase price or valuation. |
| Precise Mortgages | An amount at least equal to 110% of the mortgage valuation. |
| Scottish Building Society | Amount of mortgage plus 25%. |
| TSB | The value of the property |
| The Mortgage Business | An amount at least equal to the mortgage advance/credit limit - whichever is the highest. |
Non lender-specific considerations
The extent of the terms for matrimonial homes act indemnity insurance are explained in the policy document. Property lawyers should point your non-lender client to the matrimonial homes act indemnity insurance policy document. Matrimonial Homes Act Contingency insurance is devised to afford indemnity in respect of the risks set out in the policy schedule - so it is essential check the schedule to ensure it is correct. The continuance of this non-investment insurance contract is in perpetuity unless the policy says something to the contrary. It is well worth checking that the time frame is correct.Matrimonial Homes Act indemnity insurance: Important aspects and benefits:
Protection via such a policy is to cover the risk of third parties looking to enforce rights that can affect the use of a property. Matrimonial Homes Act indemnity insurance Policies should be checked for the following- The out of pocket expenses of altering or taking down 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 consent in writing from the insurance company to liberate the property from the risks specified in the matrimonial homes act policy.
- Reimbursement for compensation incurred in any action concerning the risks specified in the matrimonial homes act policy, as well as solicitors charges.
- Expenses for works (including professional fees) for the purpose of the development commenced, prior to proceedings for the enforcement of the risks specified in the matrimonial homes act insurance, to the extent that such costs are rendered abortive by court order.
- Market value reduction due to the successful enforcement of the risks specified in the matrimonial homes act insurance.
- All ancillary costs and expenses incurred by the Insured with the written consent of the relevant insurance company
You also need to be sure that the answers on the application form are correct. However remote the likelihood of a claim on the mortgage company insurance policy might be you can certain that the insurer will check the details on any proposal form very carefully before any claim is admitted.
Other considerations for matrimonial homes act indemnity insurance
Bear in mind, that if a covenant is breached and changes have to be made, simply getting monetary compensation from matrimonial homes act insurance may be adequate for your client. Information provided on this webpage is for general information for conveyancers and solicitors in England and Wales on the the lender conveyancing panel, it does not constitute advice for members of the public who should contact their lawyer for advice relating to the bank indemnity insurance. Whilst we endeavour to keep the information up to date and correct we do not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.
An important exclusion applying to most matrimonial homes act Policies is if you make any contact with any party who might cause a claim under the Policy, it can invalidate the cover.
The content set out above covers to properties in England and Wales.