I'm selling my dead mother's house.
There's been all manner of shenanigans, what should have been simple has taken months. We're finally on the brink of completion and I've already made one concession on the sale price. Suddenly the buyer's solicitor wants to "run checks." I've just had this from my solicitor:
"Buyers solicitors have come back to me and requested an indemnity policy for Good Leasehold Title.
Are you happy for me to run a quote and send to you to confirm you are agreeable to cover the cost of the same on completion."
To the best of my knowledge the leasehold fee was last collected in pre-decimal currency for 999 years. Am I misunderstanding something here? Is this normal or am I having my pants pulled down? If they want additional insurance for what I see as a non-existent risk then that's on them surely?
Cheers in advance.
Yeah, tell them if they want insurance they can pay for it, should be peanuts anyway if what you are saying is correct.
Just tell them no, piss off. Who's more desperate for the sale to go through/going to loose fees etc?
Though maybe you're not as much of an idiot as me. 😁
maybe you're not as much of an idiot as me.
I have many character flaws but "daft" is not one of them.
Belligerent on the other hand...
They've got this far and will be keen to get the sale over the line before the stamp duty goes up...
Suggest they pay for it if they want it!
It's in East Lancashire, stamp duty is unlikely to trouble the sale. It's sub-£100k.
To be honest, if I was in your situation I think I'd just be straight up saying you can take any indemnity you desire. Let me know by close of play today if you want to proceed on that basis or I'm going back on the market.
I was frigged about in my recent move, despite being 100% on the right side of the law and common sense. It's very frustrating and a complete waste of time and people's intelligence, let alone money.
Take control of the narrative, they either want it or they don't
Honestly, it's the pettiness that irritates me. It's a five-figure sale, you've been jumping up and down for months and months due to circumstances beyond both parties' control, and now, NOW you're "running a few checks" and trying to shave a couple of hundred quid off the price? ****'s sake.
I've replied (to my solicitor) >>
Policy wont be dear, get a quote then decide.
If its a few quid surely just geting closures worth it....
A quick google suggest somewhere between 10s and 100s. I'm more aggrieved about the pisstaking than the absolute dollar.
I got caught in my last sale. Previous owner had fitted new patio doors, my solicitor clearly hadn’t picked up on the lack of fensa cert when I bought it, but when I sold the buyers flagged it and asked for an indemnity policy. I was raging, til I found out it was about £30. Likewise the one for church fees (forget what it’s called). Think I’ve taken one out for both purchases, for similar, £20-30.
I’d be very surprised if your policy comes back above £50 - I get the impression as risks are vanishingly small, there’s no massive premiums. I would however also be awkward and suggest the buyer is welcome to pay it if they are that concerned, if they’d flagged it at the start of the process then sure, but this late in the day? Nah.
A quick google suggest somewhere between 10s and 100s. I'm more aggrieved about the pisstaking than the absolute dollar.
Appreciate it's a waste of your time but you know what will waste even more time? If the buyer is even more obstinate than you and they pull out of the transaction over 50 bloody quid...
More than happy to pay for the policy up to £100. Please advise buyers I now have to increase the price of the house by £1000 to reflect the increased value now it’s got a shiny insurance policy
if they wish to discuss thiis further I’m happy to have a dialogue at a cost of £1000 per hour or part there off.
Many years ago when buying this place OUR solicitor threw a spanner in the works because it was a brownfield site and the mortgage company would want assurance any contamination had been remediated. Our request for documents to prove it was met with a “are you joking, it was 30 yrs ago and the company that built the houses has gone out of business” and a suggestion from our lawyer that they should take out an indemnity policy, that got a “we can put the property back on the market if you want to be silly” (although he called me direct and wasn’t quite that polite!)… we ended up paying for it. I’m still convinced that either our solicitor or our mortgage company was somehow benefiting from this bullshit.
We had the same sort of crap from buyers of MIL's property just before the sale. Insurance for this, indemnity from that, last minute knocking money off for little jobs, etc. We actually told them to forget it. Everything was declared as best as we knew (the three sisters had lived their a long time before getting married, and we were all round regular doing jobs, and had sorted all the financials out for a number of years).
Such indemnities are normal, it's up to you whether you agree to pay or tell them to jog on and get it themselves.
Our house also has a lost lease, we went through the same (not the pettiness of asking the vendor to pay for it, but getting one, I mean). Shrug. Just the cost of doing business really, it's trivial compared to the cost of the house.
We just sold FiL's house, he died the day it went on the market (literally) so we got and accepted an offer last summer but then couldn't do anything for another 6 months until probate came through. Completed 3 weeks after that, not a single issue, clean as a whistle. Very relieved as the house is in a state of collapse (which possibly explains the simplicity of the sale, as it's a redevelopment site not a house).
I had this recently. Policy was about £100. Paid up last minute as well...
When we bought the house we put £100 in an account with the solictor in case anyone came knocking. Like you no ground rent had been collected for decades beforehand. We got the £100 back after 15years.
I believe there has been a legal case that resulted in someone paying out a lot, hence the rise in these policies.
Feels like money for old rope, but the selling process seems like an archaic practice with very few qualified people at the wheel...
Seems like an insurance co means of making money, if you do any investigation as to whether a "chancel repairs" indemnity policy is actually required, that would then invalidate the policy....
Part and parcel of house buying but it should have been sorted much earlier in the process. When we sold my parents house there was paperwork missing for the extention. That was sorted by me giving a statement to the effect the extention was in place when the house was bought 30 yars before. Maybe an indemnity policy as well.
They wanted a statement that the central heating was in good working order. As it was a 40 year old system with issues I just said no. The condition of the house was already reflected in the price. The heating and much else would obvioysly be replaced by the buyers so the condition was pretty irrelevant.
I dread ever moving house. Been here over 30 years, apart frim the legalities etcof selling the thought of clearing the attic, garage, and shed is not attractive.
I'd pay. As already said it won't be much and if it all goes wrong for the sake of £100 you'll be paying your conveyancer's fees for nothing other than a principle.
I can't see a massive advantage in asking you to provide a policy, just make sure that anything that you were planning to leave as a favour and didn't declare as part of the sale goes in the bin
Make it clear that this is your final concession; they stand to lose more money on conveyancing, searches, mortgage, surveys, etc,
Tell them fine, you'll pay the stupid £50 premium, but oh dear look here I didn't realise the house has [tiny inconsequential benefit] so the property price has gone up by £50.
Beat them at the petty game 😀
In lieu of professional guidance (of which I have already solicited elsewhere [here] and am awaiting responses)
You can consider the above response "professional guidance" 😉
Reply this morning,
Good morning,
Thank you for your email.
Please find attached indemnity policy attached for the cost of £22.33. Please note there is an additional admin fee of £40 for arranging the policy.
Kindly confirm that you are happy to cover the cost of the same on completion.
I've said to pay it, but noted that "happy" is not the adjective which first leapt to mind.
Had an almost identical request selling my nans house... They wanted an indemnity policy for the conservatory...
I called thier bluff.. And that was the last I heard about it.. I'd already given them a reasonable discount on the sale price.
Yes is was only £80 In my case.. But they were just trying to nickel and dime me that close to completion, so it really pissed me off!
Dear estate agent..
My Conveyancer contacted me today saying the buyers also want me to pay circa £80 for an indemnity policy for the conservatory...
To be very frank, I'm seriously considering cancelling the sale and putting the house back on the open market, Interest rates are slowly falling and house prices are slowly rising, so if they want to try any further, funny business, I will simply cancel the sale and put the house back onto the open market, I'm in no immediate rush to sell, and I believe I've given them a very good and fair deal, especially the way the economy is going at the moment, I'm not minded to entertain this kind of 11th hour nonsense.
I trust I have made myself clear.
*I've copied my conveyance solicitors in for transparency.
Kind regards,
I called thier bluff..
I was sorely tempted to do the same just on principle.
The reason I didn't is twofold. Firstly, as I said in the OP this has dragged on and on because of admin. The buyer has chased regularly but has been patient and not pulled out. It's the right thing to do to recognise that. Secondly, the whole thing is raw, my mum and I were very close. I went to the property yesterday to remove some of her effects, I wandered directionless around the house for half an hour and then left empty-handed because I couldn't cope with it. At this point in the proceedings I just want it done with.
Totally fair enough... Do what's best for you, and indemnity policies don't cost much in the grand scheme of things.
