Missing Deeds Indemnity Insurance Lender conveyancing requirements
Godiva Mortgages and Halifax, in common with many mortgage companies, dictate their own specific instructions when it comes to missing deeds indemnity insurance. This page is designed to help residential conveyancing lawyers on the different lender approved list of panel lawyers where the title to be charged contains missing deeds. It is not a alternative for checking the Council of Mortgage Lenders’ handbook requirements for each mortgage company, whether it be Accord, Virgin Money or Yorkshire Bank Home Loans. The information on this page is not focused on missing deeds indemnity insurance requirements.
Need help with missing deeds indemnity insurance from your lender?
Birmingham Midshires and Santander in common with the majority of mortgage companies, requirements are that where missing deeds indemnity insurance is to be taken out:
- the missing deeds indemnity insurance policy needs to be for the benefit of the bank and, if possible, in favour of the mortgagor and any future owner or lender. If the mortgagor will not be protected by the missing deeds indemnity insurance policy, the mortgagor needs to be informed accordingly.
- you must provide a duplicate of the missing deeds indemnity insurance to the mortgagor and explain to the mortgagor why the missing deeds indemnity insurance policy was effected and that additional insurance might be necessary if there is additional lending against the security of the property
- the minimum level of cover for the policy must satisfy the requirements for the mortgage company (see UK Finance Lenders’ Handbook Part 2 )
- your firm must approve the terms of the missing deeds policy on behalf of the bank
- the missing deeds indemnity insurance policy should be placed on risk without expense to the mortgage company
- the missing deeds indemnity insurance policy must not incorporate terms which you recognise would void or prejudice the interests of the lender
- you is obliged to disclose to the insurer all relevant information which you have obtained
- your firm must point out to the mortgagor that the borrower will need to adhere to any conditions of the missing deeds indemnity insurance policy and that the borrower should notify the mortgage company of any notice or potential claim in respect of the insurance
| Lender | Requirement |
|---|---|
| Adam & Company International | The open market value of the property according to the valuation report. |
| Ahli United Bank | An amount equal to the value of the Mortgaged Property |
| Allied Irish Bank | At least the amount of the mortgage advance. |
| Bank of China | Cover to full value of the property or the Mortgage Advance, whichever is the higher. |
| Bank of Scotland | The value of the property. |
| Birmingham Midshires | An amount equal to at least 110% of the purchase price or value, whichever is higher. |
| Capital Home Loans | An amount which is at least equal to the value or the purchase price of the property, whichever is the higher |
| Clydesdale Bank | Open market value of property. |
| Gen H | An amount equal to the value of the property unless specifically agreed in writing otherwise. |
| Hodge Equity Release | An amount equal to the purchase price or value, whichever is higher. Any indemnity insurance policy must be for our benefit, that of any transferee/assignee (legal or equitable) of the mortgage, the borrower(s) and any successor in Title. |
| Kensington Mortgage | Must be for a minimum of 110% of the purchase price or valuation whichever is the greatest. |
| M&S Bank | the value of the insurance must be for at least the full value of the property |
| ModaMortgages | An amount at least equal to 110% of the mortgage valuation. |
| National Westminster Bank | An amount equal to the value of the property. |
| Reliance Bank | £1,000,000.00 |
| Rooftop Mortgages | The value of the property for mortgage purposes as disclosed in the valuation. |
| Sainsbury's Bank | An amount equal to the higher of the value of the property or the purchase price. |
| TSB | The value of the property |
| RBS (One Account) | An amount equal to the value of the property. |
| Ulster Bank | An amount equal to the value of the property. |
Non lender-specific considerations
The extent of the terms for missing deeds indemnity insurance are set out in the policy paperwork. Conveyancing Practitioners are obliged to point the borrower to the missing deeds indemnity insurance policy paperwork. The intention of missing deeds indemnity insurance is to afford indemnity in respect of the risks specified in the policy schedule - so it’s important to check the document to ensure it is correct. The lifetime of this non-investment insurance contract is in perpetuity unless the policy says something to the contrary. Adequacy in this regard should be checked.Missing Deeds Contingency insurance: Important characteristics 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. Missing Deeds indemnity insurance Policies should be checked for the following- The out of pocket expenses of altering or destroying 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.
- Cover for compensation incurred in any action concerning the risks specified in the missing deeds policy, including legal and associated costs.
- Loss in market value due to the successful enforcement of the risks specified in the missing deeds indemnity insurance.
- Expenses for works (including professional fees) for the purpose of the development begun, or contracted for, before the commencement of proceedings for the enforcement of the risks specified in the missing deeds indemnity insurance, to the extent that such costs are rendered abortive by court decision.
- Money paid with consent in writing from the insurance company to liberate the property from the risks specified in the missing deeds indemnity insurance.
- All other costs and expenses incurred by the Insured with consent in writing from the relevant insurance company
You also need to be sure that the answers on the application form are accurate. However remote the likelihood of a claim on the bank insurance policy might be you can rest assured that the insurer will check the details on any proposal form very carefully before any claim is admitted.
Supplemental considerations for missing deeds indemnity insurance
There may be consequences arising from the enforcement of the risks identified in the missing deeds insurance which are not adequately covered by financial compensation. Information provided on this webpage is for general information for Regulated law firms in England and Wales on the the mortgage company conveyancing panel, it does not constitute advice for members of the public who should contact their lawyer for advice relating to the mortgage company 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 missing deeds 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 is in relation to properties in England and Wales.