The clause typically ensures that a landlord must notify a lender if they plan to forfeit a lease and repossess a property when, for example, the leaseholder has breached the terms of the lease. This allows the lender to liaise with their borrower in good time, protecting their investment by ensuring any breach is remedied before forfeiture takes place.
In some older leases, however, this clause may be absent, whether due to a drafting error or simply because its inclusion was not common practice at the time. For lenders this is a cause for concern, as they risk facing losses under the mortgage as a result of totally unforeseen forfeiture proceedings.
Having seen an increase in demand for this type of cover, we are delighted to announce that our policy now provides a simple, cost-effective solution to this risk, with premiums starting at just £225 for a policy limit of £50,000. And if your firm deals with this particular defect regularly, we can offer discounted premiums if you set up a block policy – just give us a call to enquire.
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 761515 or enquiries@isisconveyancing.co.uk.