We’ve recently introduced some improvements to existing cover as well as some new products as a result of feedback from solicitors.
Search policy for commercial cases – in response to increasing demand, we’ve added a ‘No search - purchase’ option for both existing and new-build commercial properties; previously, this cover was available only for residential properties. The new policy is particularly useful for cash buyers who want transactions to move quickly, and therefore are going ahead without searches being obtained. The new cover is already proving popular with the commercial pricing starting at a very competitive £53.
Estate Rent charges – we’re pleased to tell you that we’ve introduced a new Estate Rent charges policy for lenders only.
Estate rent charges are imposed by developers on modern, large developments, so that all individual property owners contribute towards future maintenance of unadopted, communal areas e.g. landscaped and grassed areas. Following the Roberts v Lawton ruling in 2016, lenders have become increasingly concerned that the owner of an estate rent charge can register a lease against the property’s freehold title, and even attempt to claim possession of a property to help secure any arrears.
The rent simply has to remain due and unpaid for 40 days before this action can be taken, whether a demand is issued or not. Lenders are naturally concerned they would be left to incur significant costs and a potential loss under the mortgage as a result of this action, if their borrower defaults on the mortgage.
Premiums start at just £42 of a limit of indemnity of £100,000.
Parental help to buy – More and more lenders are insisting on Insolvency Act indemnity cover where part, or all, of the deposit is provided by the buyer’s parents.
So, in response to demand, we’re delighted to announce our new, standalone Parental help to buy Insolvency Act policy (lender only), which is available from just £50, reflecting the low risk nature of the cover required. The policy is also available where a step parent is contributing.
Sewer insurance – the policy primarily covers the policyholder for increased costs if access is required by the water authority to carry out essential repairs when part of a property has been built over or near to a public sewer or private drain.
We have improved the policy so that now it covers any reduction in the market value of the property if any required consents cannot be obtained from the statutory water authority to reinstate the property, following the repairs.
For more information or a quote, call one of our specialist underwriters or sign in to Elite, our online quotation service which can be found under cli.co.uk.