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Question: 5.14.11. Does the lender accept indemnity insurance where the terms of the lease are unsatisfactory?

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 insurance 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 Report in writing to us quoting our reference. See 1.11

Adam & Company International Report in writing to us quoting our reference. 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.
Allied Irish Bank (GB), a trading name of AIB Group (UK) Refer to AIB Group (UK) plc, Central Securities (GB)
Atom Bank plc 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.
Aviva Equity Release UK Ltd No.
Bank of Ireland (UK) plc Yes, subject to 5.14.2 & 5.14.3 of Part 1, provided the lease defects are those normally covered by indemnity insurance where a Deed of Variation is not possible.
Bank of Ireland as Bank of Ireland Mortgages Yes, subject to 5.14.2 & 5.14.3 of Part 1, provided the lease defects are those normally covered by indemnity insurance where a Deed of Variation is not possible.
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.
Barclays Bank UK PLC Yes
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.
Birmingham Midshires Yes, subject to the requirements of section 9 being met.
Bluestone Mortgages Please contact: Settlements Team, Bluestone Mortgages, Melbourne House, 44-46 Aldwych, London, WC2B 4LL
Tel no: 0800 368 1833
Email: settlements@bluestone.co.uk
Bradford & Bingley Plc Yes
Britannia, a trading name of The Co-operative Bank plc Yes. Provided that you are satisfied that the insurance will make the title good and marketable.
Buckinghamshire Building Society No
Capital Home Loans Possibly, but you must advise us in writing in what way the lease is unsatisfactory before proceeding with the indemnity.
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.
Clydesdale Bank plc Yes, subject to the requirements of sections 9.1 & 9.2 being met.
Co-operative Bank plc Yes, provided that you are satisfied that the insurance will make the title good and marketable.
Coutts Report in writing to us quoting our reference. See 1.11
Coutts Finance Co Report in writing to us quoting our reference. See 1.11
Coventry Building Society Yes. Provided that you are satisfied that the insurance will make the title good and marketable.
Cynergy Bank Yes.
Darlington Building Society Yes
DB UK Bank Ltd Yes, subject ot the requirements of Section 9 being met
Dudley Building Society Please contact us, see contact details in 1.11a.
Earl Shilton Building Society Refer to Mortgage Dept at Head Office - Earl Shilton 01455 844 422
Ecology Building Society Refer to 1.7
Family Building Soc (a trading name of National Counties BS) Yes.
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 be satisfied that the insurance will make the title good and marketable and you can give an unqualified Certificate of Title.
Furness Building Society Yes, subject to an unqualified Certificate of Title.
GE Money Home Lending Ltd GE Money Home Lending has withdrawn from the UK mortgage market.
Godiva Mortgages Ltd Yes, Provided that you are satisfied that the insurance will make the title good and marketable.
Habito No
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 Report in writing to us quoting our reference. See 1.11.
Handelsbanken Yes providing the policy covers the specific defect and meets the requirements in paragraph 9 of Part 1.
Harpenden Building Society Generally, no
Hinckley and Rugby Building Society If the terms of the lease are unsatisfactory and an appropriate indemnity is available, this is acceptable, see 9.2 bullet two. For other defects, the lease must be varied with our consent.
Hodge Equity Release Please refer providing full details of any issues together with the potential impact on us.
Await receipt of our response before proceeding.
Hodge Life Yes, subject to 5.14.2 & 5.14.3 of Part 1, provided the lease defects are those normally covered by indemnity insurance where a Deed of Variation is not possible, you can give an unqualified Certificate of Title and the conditions in paragraph 9 are also 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 In some cases, please refer to Mortgage Services
Intelligent Finance Yes
Investec Bank plc Each case will be assessed on its merits depending on which terms are unsatisfactory and if indemnity insurance can be provided - please contact the member of Banking Legal or PBLO notified to you in the Transaction Instructions to discuss the circumstances and to seek approval.
ITL Mortgages Yes. Provided that you are satisfied that the insurance will make the title good 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) Yes, but only if it covers the specific defect and also meets the requirements in paragraphs 9.1 and 9.2 of Part 1.
Keystone Property Finance Please refer defect and your recommendation to the contact point 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 Refer to Completions Legals@landbay.co.uk
Landmark Mortgages Limited If you consider that the terms of the lease are unsatisfactory you must obtain a Deed of Variation to remedy the defect or ensure that an indemnity policy is put in place. The original policy is to be lodged with us after completion.
Leeds Building Society Yes provided you can give an unqualified Certificate of Title and you retain a copy of the insurance policy on your files.
Legal & General Home Finance Ltd Refer to 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.
Lloyds Bank plc pre fixed 20/40 Please refer the details to Mortgage Processing. Please see 1.11.
Lloyds Bank plc pre fixed 50/30/77 Please refer the details to Mortgage Processing. Please see 1.11a
Lloyds TSB Scotland plc Please refer the details to Mortgage Processing. Please see 1.11a
M&S Bank In some cases. Please refer to:
M&S Bank, PO Box 12, Skipton, BD23 2HL. Telephone Number 0345 002 1128 Fax 0345 111 0322
Magellan Homeloans Yes, provided that this is known to the borrower and valuer and that the insurance is transferable. Also subject to requirements in Section 9 relating to indemnity insurance
Manchester Building Society Yes, the limit of indemnity must equal the purchase price or valuation.
Market Harborough Building Society No
Masthaven Bank Please contact: Mortgages Team, Masthaven Bank Limited, 90 Long Acre, London, WC2E 9RA.
Telephone: 0207 036 2020
Metro Bank plc No.
Molo Finance Buy to Let Mortgages Please refer defect and your recommendation/advice to the contact point in 1.11a.
Monmouthshire Building Society Yes on the basis that the provisions of section 9 are met.
Mortgage Agency Services No
Mortgage Express Yes
Mortgage Express No 2  
National Counties Building Society Yes.
National Westminster Bank plc Yes

If you are of the view that the terms of the lease are unsatisfactory, we would request that you revert to the Landlord to have the lease terms varied or, alternatively where possible, agree for indemnity insurance to be effected before contacting us.

Nationwide Building Society Yes providing the policy covers the specific defect and meets the requirements in paragraph 9 of Part 1.

If the ground rent during the lease term rises to >£250 per annum (or >£1000 per annum in Greater London) this can lead to the potential forfeiture of the lease through the Housing Act 1988. We will accept any of the following solutions to the issue, you do not need to advise us which one has been taken. Receipt of your Certificate of Title will be taken as proof that one of the options has been implemented.

- A deed of variation is required to insert a clause in the lease that the Landlord/Managing agent must inform any lender of the breach and allow appropriate time (not less than 28 days’ notice is required) for the lender to remedy the breach before bringing possession proceedings under the Housing Act 1988.

- You may arrange for the landlord/managing agent to enter into a side agreement (below*). Please forward the completed undertaking to the processing office.

- It is acceptable for an indemnity policy to be taken out that protects us as lender. Please insert the policy number on the Certificate of Title. The indemnity policy should meet our usual requirements as set out in the UK Finance Mortgage Lenders Handbook.

If none of the three options above are available, the case cannot proceed, and you should advise us accordingly.

*Side agreement:

“Dear Sir/Madam
Re: <insert applicant name and security address>
Leaseholder:
Borrower:
Landlord:
Property:
Lease:
Lender:
Mortgage Account No:

Nationwide Building Society has been asked to provide a mortgage for the purchase of the above property and requires your agreement to the undertaking below. This undertaking must be returned to the solicitor named above.

In consideration of the Lender granting the Borrower a mortgage on the property, the Landlord (on behalf of itself and any successors in title) undertakes not to commence any proceedings for obtaining possession of the Property under any of the grounds in Schedule 2 of the Housing Act 1988 without:-
(a) givin the Lender not less than 28 days’ notice in writing of their intention to commence proceedings; and
(b) if within such a period of 28 days (or within such other period specified in the notice period, if longer), the Lender indicates in writing to the Landlord that it wishes to remedy such breach, or is going to take such action as may be necessary to resolve the problem complained of by the Landlord, giving the Lender such time as may be reasonable (in view of the nature and extent of the breach/problem) to take such action

Signed................................…………………………...
Dated.................................'
Nedbank Private Wealth Ltd You must contact us for instructions as to whether or not we will accept indemnity insurance in any particular case where the lease terms are defective.
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 you consider that the terms of the lease are unsatisfactory you must obtain a Deed of Variation to remedy the defect or ensure that an indemnity policy is put in place. The original policy is to be lodged with us after completion.
Paragon Buy to Let Mortgages Please refer defect and your recommendation/advice to the contact point in 1.11a.
Paragon Residential Owner-Occupied Mortgages Please refer defect and your recommendation/advice to the contact point in 1.11a.
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
Pepper Money If this situation arises, please contact the Lending Department on 0333 370 1101 or email
lendingenquiries@pepper.money
Pepper Money (PUK) If this situation arises, please contact the Lending Department on 0333 370 1101 or email
lendingenquiries@pepper.money
Platform (a trading name of The Co-operative Bank p.l.c.) No.
Precise Mortgages (Charter Court Financial Services Ltd) Yes - provided that the insurance makes the title good and marketable. We require you to make the customer(s) fully aware of the possible implications of the unsatisfactory lease terms.
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 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.
Rooftop Mortgages Ltd No.
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 accept title indemnity insurance in this scenario provided that (a) the policy covers the specific defect in the terms of the lease and (b) meets the general requirements of paragraph 9 of Part 1. You should not submit your Certificate of Title until such time as we have confirmed we are happy to proceed.
Santander UK plc Refer to Mortgage Operations office instructing you.
Scottish Building Society  
Scottish Widows Bank Please refer the details to
New Business Processing (see 1.11a).
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 Yes, provided you are satisfied that such insurance is a solution to the difficulty identified, it meets the requirements of Section 9 and you can give an unqualified Certificate of Title. The original policy must be placed with the Title Deeds.
Swansea Building Society Yes - by agreement for individual cases
Tesco Bank (a trading name of Tesco Personal Finance plc) We will accept title indemnity insurance in this scenario provided that (a) the policy covers the specific defect in the terms of the lease and (b) meets the general requirements of paragraph 9 of Part I.
The Mortgage Business Yes, subject to the requirements of section 9 being met.
The Mortgage Lender Limited Please contact completions@themortgagelender.com

Tel: 0344 257 0426
The Mortgage Works Yes providing the policy covers the specific defect and meets the requirements in paragraph 9 of Part 1 at the full purchase price/value whichever is the higher.
The Royal Bank of Scotland plc Yes

If you are of the view that the terms of the lease are unsatisfactory, we would request that you revert to the Landlord to have the lease terms varied or, alternatively where possible, agree for indemnity insurance to be effected before contacting us.
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 Yes.
Together Personal Finance Limited Yes, as long as the conditions set out in 5.4.7 of Part 1 are satisfied.
Topaz Finance Ltd Yes in accordance with paragraph 9.
TSB Bank plc Please refer the details to Mortgage Processing. Please see 1.11a
Ulster Bank Ltd Yes

If you are of the view that the terms of the lease are unsatisfactory, we would request that you revert to the Landlord to have the lease terms varied or, alternatively where possible, agree for indemnity insurance to be effected before contacting us.

Vida Homeloans No - Vida Homeloans will not accept an indemnity in this situation or lend if the lease is unsatisfactory.
Virgin Money Yes, but only if it's not possible or practicable to obtain a deed of variation.
Whistletree (a trading name of TSB Bank plc) If you consider that the terms of the lease are unsatisfactory you must obtain a Deed of Variation to remedy the defect or ensure that an indemnity policy is put in place. The original policy is to be lodged with us after completion
Yorkshire Bank Home Loans Ltd Yes, subject to the requirements of sections 9.1 & 9.2 being 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 Mortgages No. All defects must be remedied.