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Indemnity Insurance against searches


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Hi All

 

I'm considering putting an offer in on a repossession tomorrow but after speaking to my solicitor today she has said that the time to exchange is up to 3 weeks due to local authority searches. Legally as soon as an offer is accepted they'll advertise the accepted offer price and others could then offer more and I'd potentially lose the property.

 

Has anyone ever took out an indemnity policy against the local searches meaning the 'search' time can be reduced to 5 working days and the risk of being 'out bidded' is minimised?

 

Thanks

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On 6/11/2018 at 8:20 PM, fordy9 said:

Hi All

 

I'm considering putting an offer in on a repossession tomorrow but after speaking to my solicitor today she has said that the time to exchange is up to 3 weeks due to local authority searches. Legally as soon as an offer is accepted they'll advertise the accepted offer price and others could then offer more and I'd potentially lose the property.

 

Has anyone ever took out an indemnity policy against the local searches meaning the 'search' time can be reduced to 5 working days and the risk of being 'out bidded' is minimised?

 

Thanks

 

Not one for me.  I buy in cash and always complete full searches.  Every property so far we have found something lurking on the local search that has resulted in some sort of issue.  Personally I would continue as normal and get the searches paid for straight away.  Local searches only take 2 weeks, 3 tops.  

If a higher offer goes in then a higher offer goes in.... it could be a rather expensive mistake to make in my view, but I try to be as careful as possible, its easy for everything to go wrong very quickly.

 

Darren

 

www.fmp-investments.com

www.f-m-p.uk

property@f-m-p.uk

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I've used search indemnity insurance for a remortgage. Granted local searches were done when purchased but I've never had an issue with searches on any of my purchases. Local searches contain, amongst others, matters such as utility's, planning and road adoption. 

To give yourself more confidence ask your solicitor if they have completed on any properties near (within a few hundred meters) to the one you are considering purchasing. Chances are if they have then the searches results will be very similar if not identical.

If the solicitor knows the area well they should tell you if they have had previous search issues in the vicinity. 

It's the deeds that often contain problems concerning covenants, charges etc and your solicitor can obtain a copy of these from the land registry instantly for £3. I would be far more concerned about these than the search results. 

One other thing to consider is the cost of any indemnity policy, if this is low then it tells you something about the risk involved. Insurance companies don't have a habit of losing money, therefore if it's low cost there is a low risk. My last policy of this nature cost £14 which to me says there's next to no chance of them ever needing to pay out!

Hope this helps

Paul 

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These are my experiences.

 

The first was a charge that was placed on the property by the council.  This would not have shown on the deeds as it was new, and the deeds take a few months to be updated.  It was for £18,500 off the top of my head.

 

My 2nd one related to underpinning.  This again was only discovered on the local search and was referenced to the early 90's.  Apart from this there was no other information.

 

 

I have also had the indemnity insurance for a re-mortgage, but this has been the lenders choice.  I am assuming that  this is because you have already been through the purchase procedure so searches etc would have already been completed.

 

Its all about how you manage your risk I suppose, personally I will always pay for searches (this may change in the future as I gain more experience) but what I have picked up so far is that its not a good idea to rush something that costs so much money.  Get it right, loads of money.  Get it wrong.......

 

 

Darren

 

www.fmp-investments.com

www.f-m-p.uk

property@f-m-p.uk

 

 

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