intouch

Launched five years ago, our missing mortgagee protection clause policy initially provided cover to a lender for transactions where the borrower was a private individual, and intending to buy the property to live in themselves. We’re now also able to offer cover for transactions where a limited company landlord is acquiring a residential leasehold property, with the intention of renting it to private tenants.

Available on a lender-only basis, our cover is designed for transactions involving residential leases (particularly older leases) that don’t contain a mortgagee protection clause. The clause ensures that a landlord must notify a lender if they intend to start forfeiture proceedings against the leaseholder, for a future breach of the terms of the lease. Our policy protects lenders in this scenario, as they may be unaware that forfeiture proceedings are taking place. Without this knowledge, lenders will be unable to respond and claim relief from forfeiture – putting them at risk of a financial loss under the mortgage.

For more information or to get a quote, look for the ‘Defective Lease’ heading on our products page, or contact an underwriter directly on 01603 617617 or enquiries@cli.co.uk.