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Question: 5.14.11. Does the lender accept indemnity insurance where the terms of the lease are unsatisfactory?
| Lender | Answer |
|---|---|
| Accord Buy to Let | Yes, provided you are satisfied that such insurance is a solution to the difficulty identified and you can give an unqualified Certificate of Title . You must retain a copy of any insurance policy on your file. |
| Accord Mortgages Ltd |
Yes, provided you are satisfied that such insurance is a solution to the difficulty identified and you can give an unqualified Certificate of Title. You must retain a copy of any insurance policy on your file. |
| Adam & Company |
Report in writing to us quoting our reference. See 1.11 |
| Adam & Company International |
Report in writing to us quoting our reference. See 1.11 |
| Ahli United Bank (UK) plc | Please refer to Central Administration Unit |
| Aldermore Bank PLC |
Yes, subject to the requirements of Section 9 of Part 1 being met and the policy being for our benefit and the benefit of our Transferees. Providing the conveyancer is satisfied and can confirm that the insurance provides an adequate solution to the issue identified, including issues of unknown restrictive covenants, and an unqualified certificate of title can be provided. |
| Allied Irish Bank (GB), a trading name of AIB Group (UK) | Refer to AIB Group (UK) plc, Central Securities (GB), 92 Anne Street, Belfast, BT1 3H |
| April Mortgages | Please contact on a case by case basis as per 1.11 |
| Atom Bank plc |
Yes, provided you are satisfied that such insurance is a solution to the difficulty identified and you can give an unqualified Certificate of Title. You must retain a copy of any insurance policy on your file. |
| Aviva Equity Release UK Ltd | No. |
| Bank of China | Possibly, but you must advise us in writing in what way the lease is unsatisfactory before proceeding with the indemnity insurance and confirm you are able to give an unconditional and clean Certificate of Title. We may refuse to lend at our absolute discretion as a result of the Lease defect. |
| Bank of Ireland (UK) plc | Yes, subject to 5.14.2 & 5.14.3 of Part 1, provided the lease defects are those normally covered by indemnity insurance where a Deed of Variation is not possible. |
| Bank of Ireland as Bank of Ireland Mortgages | Yes, subject to 5.14.2 & 5.14.3 of Part 1, provided the lease defects are those normally covered by indemnity insurance where a Deed of Variation is not possible. |
| Bank of Scotland Beginning A |
Yes, subject to the requirements of section 9 being met. |
| Bank of Scotland Beginning O |
Yes, subject to the requirements of section 9 being met. |
| Bank of Scotland Private Banking | |
| Barclays Bank UK PLC | Yes, provided the conveyancer is satisfied that the insurance provides an adequate solution to the issue identified, including issues of unknown restrictive covenants, and an unqualified certificate of title can be provided. |
| Barnsley Building Soc, a trading name Yorkshire Building Soc | Yes, provided you are satisfied that such insurance is a solution to the difficulty identified and you can give an unqualified Certificate of Title. You must retain a copy of any insurance policy on your file. |
| Better HomeOwnership (Mortgages) |
We can accept indemnity insurance on a case by case basis. Please see 1.11 for contact details. |
| Birmingham Bank | No |
| Birmingham Midshires | Yes, subject to the requirements of section 9 being met. |
| Bluestone Mortgages |
Please contact: Settlements Team: Bluestone Mortgages, 3rd Floor, 22 Chancery Lane, London, WC2A 1 LS Tel no: 0800 368 1833 Option 3 Email: settlements@bluestonemortgages.co.uk |
| Bradford & Bingley Limited | Yes |
| Britannia, a trading name of The Co-operative Bank plc | Yes. Provided that you are satisfied that the insurance will make the title good and marketable. |
| Buckinghamshire Building Society | No |
| Chelsea Building Society (a trading name of Yorkshire BS) | Yes, provided you are satisfied that such insurance is a solution to the difficulty identified and you can give an unqualified Certificate of Title. You must retain a copy of any insurance policy on your file. |
| CHL Mortgages |
Please note CHL does not accept underleases. In other situations it's possible, but you must advise us in writing in what way the lease is unsatisfactory before proceeding with the indemnity and we may refuse to lend at our absolute discretion as a result of the Lease defect. Generic title indemnity insurance policies are unacceptable. If the case proceeds you should send us details of the insurer and retain a copy on your file for review. |
| Clydesdale Bank plc | Yes, subject to the requirements of sections 9.1 & 9.2 being met. |
| Co-operative Bank plc |
Yes, provided the lease defects are those normally covered by indemnity insurance where a Deed of Variation is not possible, you can give an unqualified Certificate of Title and the conditions in paragraph 9 are also satisfied. |
| Coutts | Report in writing to us quoting our reference. See 1.11 |
| Coutts Finance Co | Report in writing to us quoting our reference. See 1.11 |
| Coventry Building Society | Yes. Provided that you are satisfied that the insurance will make the title good and marketable. |
| Cynergy Bank | Yes. |
| Danske Bank | If this situation arises, please contact us via the details provided at 1.11a. |
| Darlington Building Society | Yes |
| DB UK Bank Ltd |
Yes, subject ot the requirements of Section 9 being met |
| Dudley Building Society | Please contact us, see contact details in 1.11a. |
| Ecology Building Society | Refer to 1.7 |
| Family Building Soc (a trading name of National Counties BS) | Yes. |
| First Direct | In some cases, please refer us, see 1.11a for contact details |
| Fleet Mortgages | Yes. However, your attention is drawn to 9.1 below. |
| Foundation Home Loans |
We will accept such policies in limited circumstances on a case by case basis. The policies must be adequate and if this means that the Policy is to be bespoke (i.e. not a self-write) then it is our requirement that such a policy is to be taken. You must be satisfied that the insurance will make the title good and marketable and you can give an unqualified Certificate of Title. You must ensure that the requirements of Section 9 of Part 1 being met and the policy being the benefit of us, our transferees and our assignees. |
| Furness Building Society |
Yes, subject to an unqualified Certificate of Title. |
| GE Money Home Lending Ltd | GE Money Home Lending has withdrawn from the UK mortgage market. |
| Gen H | If you are of the view that the terms of the lease are unsatisfactory, we would request that you revert to the Landlord to have the lease terms varied. Alternatively, where possible and at our discretion (please report to us as detailed at 1.11a), we may be agreeable to you obtaining suitable indemnity insurance. Any indemnity insurance proposed must adequately protect us and you still must be able to certify that the title is good and marketable. |
| Godiva Mortgages Ltd | Yes, Provided that you are satisfied that the insurance will make the title good and marketable. |
| Habito | No |
| Halifax |
Yes, subject to the requirements of section 9 being met. |
| Halifax Loans Ltd |
Yes, subject to the requirements of section 9 being met. |
| Hampden & Co. plc | Report in writing to us quoting our reference. See 1.11. |
| Handelsbanken | Yes providing the policy covers the specific defect and meets the requirements in paragraph 9 of Part 1. |
| Harpenden Building Society |
No |
| Hinckley and Rugby Building Society | If the terms of the lease are unsatisfactory and an appropriate indemnity is available, this is acceptable, see 9.2 bullet two. For other defects, the lease must be varied with our consent. |
| Hodge | Yes, subject to 5.14.2 & 5.14.3 of Part 1, provided the lease defects are those normally covered by indemnity insurance where a Deed of Variation is not possible, you can give an unqualified Certificate of Title and the conditions in paragraph 9 are also satisfied. Please add details of the Policy provider and the Policy number on the Certificate of Title and retain a copy on your file. |
| Hodge Equity Release |
Please refer providing full details of any issues together with the potential impact on us. Await receipt of our response before proceeding. |
| Holmesdale Building Society | No. |
| HSBC UK Bank plc | In some cases, please refer to us, see 1.11a for contact details. |
| Intelligent Finance | Yes |
| Investec Bank plc | Only in certain circumstances. Please refer individual cases. See 1.11 |
| ITL Mortgages | Yes. Provided that you are satisfied that the insurance will make the title good and marketable. |
| JPMorgan Chase Bank, N.A. | Refer to office issuing Mortgage Instructions. |
| Kensington Mortgage Company Ltd | Yes subject to the requirements of Section 9 of Part 1 being met and the policy being the benefit of us, our transferees and our assignees. |
| Kent Reliance (a trading name of OneSavings Bank plc) | Yes, but only if it covers the specific defect and also meets the requirements in paragraphs 9.1 and 9.2 of Part 1. |
| Keystone Property Finance | Please refer defect and your recommendation to the contact point in 1.11a. You must be satisfied that the insurance will make the title good and marketable and you can give an unqualified Certificate of Title |
| Landbay Partners Limited |
Yes, provided the lease defects are those normally covered by indemnity insurance where a Deed of Variation is not possible, you can give an unqualified Certificate of Title and the conditions in section 9 are also satisfied. |
| Landmark Mortgages Limited |
If you consider that the terms of the lease are unsatisfactory you must obtain a Deed of Variation to remedy the defect or ensure that an indemnity policy is put in place. The original policy is to be lodged with us after completion. |
| Leeds Building Society | Yes provided you can give an unqualified Certificate of Title and you retain a copy of the insurance policy on your files. |
| Legal & General Home Finance Ltd | Refer to Underwriting department. If indemnity insurance is accepted you must ensure that the insurance will make the title good and marketable and the insurance policy complies with the requirements of section 9. |
| LendInvest | Yes. However, your attention is drawn to 9.1 below. You must be satisfied that the insurance will make the title good and marketable and you can give an unqualified Certificate of Title. |
| LiveMore Capital | Yes. For remortgage transactions where the property is already owned by the borrower(s), you should ensure that we have the benefit of the indemnity insurance. Should you consider it necessary to take out indemnity insurance, you should explain to the borrower why you consider this necessary, and ensure that you can give an unqualified Certificate of Title. |
| Lloyds Bank plc pre fixed 20/40 | Please refer the details to Mortgage Processing. Please see 1.11. |
| Lloyds Bank plc pre fixed 50/30/77 | Please refer the details to Mortgage Processing. Please see 1.11a |
| Lloyds TSB Scotland plc |
Please refer the details to Mortgage Processing. Please see 1.11a |
| M&S Bank |
In some cases. Please refer to: M&S Bank, PO Box 12, Skipton, BD23 2HL. Telephone Number 0345 002 1128 Fax 0345 111 0322 |
| Magellan Homeloans | Yes, provided that this is known to the borrower and valuer and that the insurance is transferable. Also subject to requirements in Section 9 relating to indemnity insurance |
| Manchester Building Society | Yes, the limit of indemnity must equal the purchase price or valuation. |
| Market Harborough Building Society | No |
| Masthaven Bank | Please contact: Mortgages Team, Masthaven Bank Limited, 15-18 Rathbone Place, London, W1T 1HU. Telephone: 0207 036 2020 |
| Metro Bank plc | No. |
| ModaMortgages |
Yes, but only if it covers the specific defect and also meets the requirements in paragraphs 9.1 and 9.2 of Part 1. A copy of the insurance policy should be submitted via email to completions@modamortgages.co.uk. Please include the Mortgage Reference Number which is on the first page of the Mortgage Offer. |
| Molo Finance | Please refer summary details of defect, and your recommendation/advice to the contact point in 1.11a. |
| Monmouthshire Building Society | Yes on the basis that the provisions of section 9 are met. |
| Mortgage Agency Services | No |
| Mortgage Express | Yes |
| Mortgage Express No 2 | |
| MPowered Mortgages |
Yes, provided the conveyancer is satisfied that the insurance provides an adequate solution to the issue identified, including issues of unknown restrictive covenants, and an unqualified certificate of title can be provided. Please refer the nature of the defect along with your recommendation to the contact point in 1.11a |
| National Counties Building Society | Yes. |
| National Westminster Bank plc |
Yes If you are of the view that the terms of the lease are unsatisfactory, we would request that you revert to the Landlord to have the lease terms varied or, alternatively where possible, agree for indemnity insurance to be effected before contacting us. |
| Nationwide Building Society |
Yes providing the policy covers the specific defect and meets the requirements in paragraph 9 of Part 1. If the ground rent during the lease term rises to >£250 per annum (or >£1000 per annum in Greater London) this can lead to the potential forfeiture of the lease through the Housing Act 1988. We will accept any of the following solutions to the issue, you do not need to advise us which one has been taken. Receipt of your Certificate of Title will be taken as proof that one of the options has been implemented. - A deed of variation is required to insert a clause in the lease that the Landlord/Managing agent must inform any lender of the breach and allow appropriate time (not less than 28 days’ notice is required) for the lender to remedy the breach before bringing possession proceedings under the Housing Act 1988. - You may arrange for the landlord/managing agent to enter into a side agreement (below*). Please forward the completed undertaking to the processing office. - It is acceptable for an indemnity policy to be taken out that protects us as lender, however we require that the indemnity does not place obligations on us to update the insurer. Please insert the policy number on the Certificate of Title. The indemnity policy should meet our usual requirements as set out in the UK Finance Mortgage Lenders Handbook. If none of the three options above are available, the case cannot proceed, and you should advise us accordingly. *Side agreement: “Dear Sir/Madam Re: <insert applicant name and security address> Leaseholder: Borrower: Landlord: Property: Lease: Lender: Mortgage Account No: Nationwide Building Society has been asked to provide a mortgage for the purchase of the above property and requires your agreement to the undertaking below. This undertaking must be returned to the solicitor named above. In consideration of the Lender granting the Borrower a mortgage on the property, the Landlord (on behalf of itself and any successors in title) undertakes not to commence any proceedings for obtaining possession of the Property under any of the grounds in Schedule 2 of the Housing Act 1988 without:- (a) giving the Lender not less than 28 days’ notice in writing of their intention to commence proceedings; and (b) if within such a period of 28 days (or within such other period specified in the notice period, if longer), the Lender indicates in writing to the Landlord that it wishes to remedy such breach, or is going to take such action as may be necessary to resolve the problem complained of by the Landlord, giving the Lender such time as may be reasonable (in view of the nature and extent of the breach/problem) to take such action Signed................................…………………………... Dated.................................' |
| Nedbank Private Wealth Ltd | You must contact us for instructions as to whether or not we will accept indemnity insurance in any particular case where the lease terms are defective. |
| New Street Mortgages |
Yes subject to the requirements of Section 9 of Part 1 being met and the policy being the benefit of us, our transferees and our assignees |
| NRAM Ltd | If you consider that the terms of the lease are unsatisfactory you must obtain a Deed of Variation to remedy the defect or ensure that an indemnity policy is put in place. The original policy is to be lodged with us after completion. |
| Paragon Buy to Let Mortgages |
Please refer defect and your recommendation/advice to the contact point in 1.11a. |
| Paragon Residential Owner-Occupied Mortgages | Please refer defect and your recommendation/advice to the contact point in 1.11a. |
| Paratus AMC Ltd |
We will accept such policies in limited circumstances on a case by case basis. The policies must be adequate and if this means that the Policy is to be bespoke (i.e. not a self-write) then it is our requirement that such a policy is to be taken. You must be satisfied that the insurance will make the title good and marketable and you can give an unqualified Certificate of Title. |
| Parity Trust | Refer to 1.7 |
| Pepper Money |
If this situation arises, please contact the Lending Department on 0333 370 1101 or email lendingenquiries@pepper.money |
| Pepper Money (PUK) |
If this situation arises, please contact the Lending Department on 0333 370 1101 or email lendingenquiries@pepper.money |
| Perenna |
Yes, provided you are satisfied that such insurance is a solution to the difficulty identified and you can give an unqualified Certificate of Title. You must retain a copy of any insurance policy on your file. |
| Platform (a trading name of The Co-operative Bank p.l.c.) | No. |
| Precise Mortgages (Charter Court Financial Services Ltd) |
Yes, but only if it covers the specific defect and also meets the requirements in paragraphs 9.1 and 9.2 of Part 1. |
| Principality Building Society | Yes - provided you are satisfied that such insurance is a solution to the problem identified and you can give an unqualified Certificate of Title. The conditions in paragraph 9 must also be satisfied. Please add details of the Policy provider and the Policy number on the Certificate of Title and retain a copy on your file. |
| Reliance Bank Ltd | Yes but referral to lender required to assess the policy in place |
| Rooftop Mortgages Ltd | No. |
| Saffron Building Society | Yes - subject to the terms of Section 9 of Part 1 of the Handbook, and the policy being for our benefit and the benefit of our Transferees |
| Sainsbury's Bank | We will accept title indemnity insurance in this scenario provided that (a) the policy covers the specific defect in the terms of the lease and (b) meets the general requirements of paragraph 9 of Part 1. You should not submit your Certificate of Title until such time as we have confirmed we are happy to proceed. |
| Santander UK plc | Refer to Mortgage Operations office instructing you. |
| Scottish Building Society | Yes, provided you can give an unqualified Certificate of Title, that you meet the requirements of section 9, and you retain a copy of the insurance policy on your files. |
| Scottish Widows Bank |
Please refer the details to New Business Processing (see 1.11a). |
| Secure Trust Bank PLC | Yes, subject to the requirements of Section 9 of Part 1 being met and the policy being for our benefit and the benefit of our Transferees. |
| Skipton Building Society |
Yes, as long as our successors in title including purchasers on a repossession sale are also entitled to the benefit of the policy. Please see 5.14.9 for details of the circumstances in which we will accept indemnity insurance. |
| St James Place Bank | Yes. |
| State Bank of India UK | Yes, provided you are satisfied that such insurance is a solution to the difficulty identified, it meets the requirements of Section 9 and you can give an unqualified Certificate of Title. The original policy must be placed with the Title Deeds. |
| Swansea Building Society | Yes - by agreement for individual cases |
| The Mortgage Business |
Yes, subject to the requirements of section 9 being met. |
| The Mortgage Lender Limited |
Please contact completions@themortgagelender.com Tel: 0344 257 0426 |
| The Mortgage Works |
Yes providing the policy covers the specific defect and meets the requirements in paragraph 9 of Part 1 at the full purchase price/value whichever is the higher. |
| The Royal Bank of Scotland plc |
Yes If you are of the view that the terms of the lease are unsatisfactory, we would request that you revert to the Landlord to have the lease terms varied or, alternatively where possible, agree for indemnity insurance to be effected before contacting us. |
| The Royal Bank of Scotland plc Direct Line Mortgages | Yes. |
| The Royal Bank of Scotland plc Direct Line One | Yes. |
| The Royal Bank of Scotland plc First Active | Yes. |
| The Royal Bank of Scotland plc Natwest one Account | Yes. |
| The Royal Bank of Scotland plc One Account | Yes. |
| The Royal Bank of Scotland plc Virgin One | Yes. |
| The Tipton & Coseley Building Society | Yes. |
| Together Personal Finance Limited | Yes, as long as the conditions set out in 5.4.7 of Part 1 are satisfied. |
| Topaz Finance Ltd |
Yes in accordance with paragraph 9. |
| TSB Bank plc | Please refer the details to Mortgage Processing. Please see 1.11a |
| Ulster Bank |
Yes If you are of the view that the terms of the lease are unsatisfactory, we would request that you revert to the Landlord to have the lease terms varied or, alternatively where possible, agree for indemnity insurance to be effected before contacting us. |
| Vida Homeloans | No - Vida Homeloans will not accept an indemnity in this situation or lend if the lease is unsatisfactory. |
| Virgin Money | Yes, but only if it's not possible or practicable to obtain a deed of variation. |
| Whistletree (a trading name of TSB Bank plc) | If you consider that the terms of the lease are unsatisfactory you must obtain a Deed of Variation to remedy the defect or ensure that an indemnity policy is put in place. The original policy is to be lodged with us after completion |
| Yorkshire Bank Home Loans Ltd | Yes, subject to the requirements of sections 9.1 & 9.2 being met. |
| Yorkshire Building Society | Yes, provided you are satisfied that such insurance is a solution to the difficulty identified and you can give an unqualified Certificate of Title. You must retain a copy of any insurance policy on your file. |
| Zephyr Homeloans | No. All defects must be remedied. |