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Question: 5.14.15. Does the lender accept indemnity insurance if the landlord is absent or insolvent?
| 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 insurnace 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 | No, but may be accepted with our prior written approval. Please refer individual cases See 1.11 |
| Adam & Company International |
No, but may be accepted with our prior written approval. Please refer individual cases. 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. Yes, provided the conveyancer is satisfied and 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 | Indemnity insurance is required if we agree to lend. Please contact on a case by case basis as per 1.11 |
| Atom Bank plc | Yes, provided you are satisfied that such insurance is fully comprehensive and 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 | Yes |
| Bank of China | No. We will not agree to lend in these circumstances. |
| Bank of Ireland (UK) plc | Only if such insurance covers us in the event of a failure to insure or repair the common parts and services. |
| Bank of Ireland as Bank of Ireland Mortgages | Only if such insurance covers us in the event of a failure to insure or repair the common parts and services. |
| 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) | On a case by case basis you can refer to the lender, 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 |
| Buckinghamshire Building Society |
Please refer tot he society. Buckinghamshire Building Society, High Street, Chalfont St Giles, Bucks, HP8 4QB e-mail mortgages@bucksbs.co.uk Tel: 01494 879517 Fax: 01494 877259 |
| 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 | Yes, providing the Title remains good and marketable and you are satisfied that such indemnity insurance covers all associated risks and you are able to give an unqualified certificate of title. You should send us details of the insurer and retain a copy on your file for review. |
| Clydesdale Bank plc | Yes, if the requirements of section 9 are met. |
| Co-operative Bank plc | Yes, subject to the requirements of section 9 being met. |
| Coutts | No, but may be accepted with our prior written approval. Please refer individual cases. See 1.11 |
| Coutts Finance Co | No, but may be accepted with our prior written approval. Please refer individual cases. See 1.11 |
| Coventry Building Society | Yes. Provided that you are satisfied that the insurance will make the title good and marketable. |
| Cynergy Bank | We will consider on a case by case basis. |
| Danske Bank | If this situation arises, please contact us via the details provided at 1.11a. |
| Darlington Building Society | Yes, but refer individual cases prior to submitting Certificate of Title |
| DB UK Bank Ltd | Yes, subject of the requirements of Section 9 being met |
| Dudley Building Society | Yes. Insurance must be sufficient to cover lease requirements. |
| Ecology Building Society | Yes |
| Family Building Soc (a trading name of National Counties BS) | Yes. |
| First Direct |
Yes, indemnity insurance is acceptable. |
| 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 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 | No |
| GE Money Home Lending Ltd | GE Money Home Lending has withdrawn from the UK mortgage market. |
| Gen H | If the property is leasehold and there is an absentee or insolvent Landlord and no more than 6 flats in the building, you do not need to report this to us if you are submitting a clear certificate of title and an appropriate indemnity policy is obtained on completion to protect our security. If there are 7 flats or more in the building this is not acceptable to us. If you need to report any issues, please do so through Secure Link which is accessed via the LMS Conveyancer Zone. |
| Godiva Mortgages Ltd | Yes. Provided that you are satisfied that the insurance will make the title good and marketable. |
| Habito | Yes. Provided that you are satisfied that the insurance will make the title good and marketable. |
| 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 | No, but may be accepted with our prior written approval. Please refer individual cases. See 1.11. |
| Handelsbanken | Yes, if fully comprehensive. |
| Harpenden Building Society |
No |
| Hinckley and Rugby Building Society | Yes. |
| Hodge | 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. |
| Hodge Equity Release | 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. |
| Holmesdale Building Society | No. |
| HSBC UK Bank plc | Yes, indemnity insurance is acceptable. |
| Intelligent Finance | Yes |
| Investec Bank plc | Yes, if fully comprehensive. |
| ITL Mortgages | Yes. Provided that you are satisfied that the insurance will make the title good and 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) | We only lend if (a) there are 6 or less flats in the building and (b) appropriate indemnity insurance covering the issue is in place. |
| Keystone Property Finance | Please refer the matter to the contact details 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, if the title remains good and marketable and you are satisfied that such indemnity insurance covers all associated risks and you are able to issue an unqualified title certificate. |
| Landmark Mortgages Limited | If there is an absentee landlord we are prepared to proceed upon your confirmation that the position is accepted by practitioners in the locality and provided the landlord is not obligated by the terms of the lease to maintain, repair and insure any common services or to enforce such obligations against a third party. In the case of insolvent landlords refer to our New Mortgage Completions. |
| Leeds 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. |
| Legal & General Home Finance Ltd | Please refer to the 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 | Indemnity insurance is required if we agree to lend. |
| Lloyds Bank plc pre fixed 50/30/77 | Indemnity insurance is required if we agree to lend. |
| Lloyds TSB Scotland plc |
Indemnity insurance is required if we agree to lend. |
| M&S Bank | Yes indemnity insurance is acceptable. we will also require you to make a retention equivalent to 6 (six) years ground rent |
| Magellan Homeloans | Yes, providing the Title remains good and marketable and section 9 has been complied with |
| Manchester Building Society | Yes, the limit of indemnity must equal the purchase price or valuation. |
| Market Harborough Building Society | No |
| Masthaven Bank | No. |
| Metro Bank plc | Refer to Mortgage Operations Helpdesk, see 1.11. |
| ModaMortgages |
We only lend if (a) there are six or less flats in the building and (b) appropriate indemnity insurance covering the issue is in place. 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 | If we are to accept indemnity insurance the conveyancer must ensure and confirm that it meets our requirements set out in Section 9 and that the policy has rapid payout. |
| Monmouthshire 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. |
| Mortgage Agency Services | Yes |
| 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. |
| National Counties Building Society | Yes. |
| National Westminster Bank plc | Yes |
| Nationwide Building Society |
Yes, providing there are no more than 6 flats in the building (no need to contact the Issuing Office)-7 flats or more unacceptable |
| Nedbank Private Wealth Ltd | You must refer to us |
| 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 there is an absentee landlord we are prepared to proceed upon confirmation that the position is accepted by practitioners in the locality and provided the landlord is not obliged by the terms of the lease to maintain, repair and insure any common services or to enforce such obligations against a third party. In the case of insolvent landlords refer to 11.1a. |
| Paragon Buy to Let Mortgages |
Generally no, but:- 1. Where the security comprises a house we may be prepared to accept a suitable indemnity policy if the landlord is absent or insolvent where the lease term is a long lease such as 999 years or similar. 2. Where the security comprises a flat please refer the matter to the contact details in 1.11a. |
| Paragon Residential Owner-Occupied Mortgages |
Generally no, but:- (i) Where the security comprises a house, we may be prepared to accept a suitable indemnity policy if the landlord is absent or insolvent where the lease term is a long lease such as 999 years or similar. (ii) Where the security comprises a flat, we may be prepared to accept a suitable indemnity policy if the landlord is absent or insolvent if:- 1. the term of the lease remaining at the end of the mortgage is a minimum of 100 years; and 2. there are no more than two flats in the block; and 3. there is sufficient evidence that the owners of the flats are performing the obligations imposed on the landlord, particularly, in respect of repairing and insuring the building. |
| 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 |
| Parity Trust | Refer to 1.7 |
| Pepper Money | No, Pepper Money does not lend where the landlord is absent or insolvent. |
| Pepper Money (PUK) | No, Pepper Money does not lend where the landlord is absent or insolvent. |
| Perenna | Please contact our Mortgage team by either telephone: 0330 341 2013 or Email: conveyancing@perenna.co.uk |
| Platform (a trading name of The Co-operative Bank p.l.c.) | Yes. |
| Precise Mortgages (Charter Court Financial Services Ltd) |
We only lend if (a) there are 6 or less flats in the building and (b) appropriate indemnity insurance covering the issue is in place. |
| 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 section 9 must also be satisfied. You must provide us with a copy of the Policy and retain a copy of the Policy on your file. |
| Reliance Bank Ltd | Yes |
| Rooftop Mortgages Ltd | Please refer the property specific details to the address shown on the mortgage offer. |
| 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 not lend where there is an absent or insolvent landlord. |
| Santander UK plc | We may accept indemnity insurance but the matter must be referred to the Mortgage Operations office instructing you for confirmation that indemnity insurance is acceptable and for details of any additional requirements. |
| Scottish 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 the insurance policy on your file. The insurance must meet the requirements of section 9. |
| Scottish Widows Bank | Yes. |
| 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. |
| St James Place Bank | Yes. |
| State Bank of India UK |
Please refer to contact point in 1.11a with full details of the situation and your recommendation/advice. If we do agree to lend, indemnity insurance will be required. |
| Swansea Building Society | No |
| The Mortgage Business |
Yes, subject to the requirements of section 9 being met. |
| The Mortgage Lender Limited | No. We are not prepared to lend in these circumstances. |
| The Mortgage Works |
Yes, for the full purchase price/value whichever is the higher. Acceptable with indemnity insurance where there are no more than 6 flats in the building, where 7 or more flats then not acceptable. For Leasehold houses with an absent or insolvent Landlord, acceptable with suitable indemnity insurance. |
| The Royal Bank of Scotland plc | Yes. |
| 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 | No, we do not lend in these circumstances. |
| Together Personal Finance Limited | Yes, as long as the conditions set out in 5.4.7 of Part 1 are satisfied. |
| Topaz Finance Ltd | No. |
| TSB Bank plc | Indemnity insurance is required if we agree to lend. |
| Ulster Bank | Yes. |
| Vida Homeloans |
Vida Homeloans may accept indemnity insurance if the landlord is absent or insolvent, provided: • It meets our requirements in section 9, • There are 6 or less flats in the building, and • You must be satisfied that the insurance will make the title good and marketable and you can give an unqualified Certificate of Title |
| Virgin Money |
No. Instead refer to: Mortgage Processing Operations Virgin Money Gosforth Newcastle upon Tyne NE3 4PL Solicitor Helpline: 0845 604 4858 Solicitor Email: postoffer@virginmoney.com If the landlord is absent, we'll lend if you confirm: - that the position is accepted by practitioners in the local area of the property; and - the landlord isn't required by the lease to maintain, repair or insure any common areas/services or to enforce such obligations against 3rd parties. |
| Whistletree (a trading name of TSB Bank plc) | Yes, Indemnity Insurance is required |
| Yorkshire Bank Home Loans Ltd | Yes, if the requirements of section 9 are 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. |