Indemnity Insurance of Matrimonial Homes Act Mortgage Company conveyancing instructions
Skipton and Birmingham Midshires, like the majority of banks, set their own specific instructions when it comes to matrimonial homes act indemnity insurance. This page sets out to enlighten property law firms on the various bank solicitors panel where the title to be charged includes matrimonial homes act. It is not a alternative for checking the Council of Mortgage Lenders’ handbook requirements for each mortgage company, be it HSBC, Halifax or Godiva Mortgages. 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?
Lloyds TSB and Barnsley BS as with many mortgage companies, instructions are such that where matrimonial homes act indemnity insurance is to be put on risk:
- the matrimonial homes act indemnity insurance policy must not contain conditions that you recognise would void or compromise the interests of the mortgage company
- the matrimonial homes act indemnity insurance policy should always be in favor of the mortgage company and, wherever possible, for the benefit of the mortgagor and any next registered proprietor or lender. Where the borrower will not be covered by the matrimonial homes act indemnity insurance policy, the borrower must be informed accordingly.
- your practice must supply a copy of the matrimonial homes act indemnity insurance to the borrower and explain to the mortgagor why the matrimonial homes act indemnity insurance policy was effected and that a further policy could be required if there is supplemental borrowing against the security of the property
- you must point out to the borrower that the borrower is obliged to comply with any conditions of the matrimonial homes act indemnity insurance policy and that the borrower should notify the mortgage company of any notice or potential claim in respect of the insurance
- the limit of indemnity must satisfy the requirements for the mortgage company (see UK Finance Lenders’ Handbook Part 2 )
- the matrimonial homes act indemnity insurance policy should be placed on risk at no expense to the bank
- your practice must approve the terms of the matrimonial homes act policy on behalf of the bank
- your practice is obliged to reveal to the insurer all relevant information which you have gathered
| Lender | Requirement |
|---|---|
| Accord Buy to Let | 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. |
| Adam & Company International | The open market value of the property according to the valuation report. |
| Better HomeOwnership | An amount to cover the mortgage advance as a minimum. |
| Co operative Bank | An amount equal to at least 110% of the mortgage advance. |
| Ecology Building Society | An amount equal to at least 110% of the mortgage advance |
| First Direct | The value of the insurance must be for at least the full value of the property |
| Fleet Mortgages | An amount at least equal to the valuation of the property. |
| HSBC UK Bank | The value of the insurance must be for at least the full value of the property |
| Habito | Higher of purchase price or valuation |
| Hodge | 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. |
| Intelligent Finance | An amount at least equal to the total of the initial mortgage advance plus any pre-agreed reserve. These amounts will be shown in the mortgage offer. |
| Kent Reliance | An amount at least equal to 110% of the mortgage valuation. |
| Landmark | Preference for full market value of the property, but if this level of cover is not available, will accept a minimum of the actual loan amount. You must approve the policy on our behalf. |
| Monmouthshire Building Society | The higher of the purchase price or valuation. For remortgages, the value of the advance. |
| National Counties Building Society | An amount at least equal to the mortgage advance. |
| Paratus | An amount equal to 110% of the valuation or purchase price - whichever is the greater. |
| State Bank of India UK | The purchase price or value of the property, whichever is the higher. |
| Swansea Building Society | Purchase price or market valuation whichever is the higher |
| TSB | The value of the property |
| Virgin | We require the full market value of the Property. Where this isn't available, we'll accept the loan amount as a minimum. |
General Matrimonial Homes Act indemnity insurance points to consider
The extent of the terms for matrimonial homes act indemnity insurance are set out in the policy paperwork. Conveyancing solicitors are obliged to direct the borrower to the matrimonial homes act indemnity insurance policy document. Matrimonial Homes Act indemnity insurance is designed to afford indemnity in respect of the risks set out in the policy schedule - so you should check any draft to ensure it is correct. The lifetime of this non-investment insurance contract is in perpetuity unless otherwise stated in the matrimonial homes act indemnity insurance policy. Again, please check that this is as you expected.Significant features and benefits of matrimonial homes act indemnity insurance :
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 Cover normally includes- The cost 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.
- 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 matrimonial homes act policy, to the extent that such costs are rendered abortive by court decision.
- All other costs and expenses incurred by the Insured with consent in writing from the relevant insurer
- Liability for damages or compensation incurred in any action concerning the risks specified in the matrimonial homes act insurance, as well as fees of a legal nature.
- Market value reduction due to the successful enforcement of the risks specified in the matrimonial homes act policy.
- All sums paid with consent in writing from the insurance company to liberate the land from the risks specified in the matrimonial homes act insurance.
As with any insurance policy, all material information needs to be disclosed to the insurance company at the outset and throughout the policy term, otherwise the matrimonial homes act policy will not be valid.
Matrimonial Homes Act Indemnity Insurance has limitations - Further considerations
Matrimonial Homes Act insurance may satisfy lenders such as RBS or Virgin Money and prevent clients from from suffering financially but it cannot compensate for the stress and inconvenience the emotional suffering - after all the value of a home cannot always be measured in cash in the eyes of the owner. Content on this webpage is for general information for Regulated law firms in England and Wales on the the bank solicitor 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 above information covers to properties in England and Wales.