Earlier this year we released two new combined products in response to growing market demand.
Missing Mortgagee Protection Clause and Housing Act (lender only)
Having noticed an increase in transactions that required cover for both a missing mortgagee protection clause, and protection against the risk of repossessions under the Housing Act, we developed our lender only Missing Mortgagee Protection Clause and Housing Act policy.
As more housebuilders are selling new-build houses as leasehold properties, lenders are increasingly exposed to the risk of forfeiture of lease, and our combined policy covers two of the most common areas of concern. Firstly, a mortgagee protection clause safeguards lenders by requiring a landlord to notify them before taking any action to forfeit a lease and repossess a property: for example, where the leaseholder has breached the terms of their lease through non-payment of ground rent or other service charges. However, if the clause is missing for any reason, the landlord, as the freehold owner, could forfeit the lease and take back the property before the lender even has time to respond.
The second concern is around the rent thresholds applied by the Housing Act, which have not been reviewed for many years. Where the unpaid ground rent exceeds £250 per year (or £1,000 per year for properties in London) a lease can be interpreted as a tenancy and fall under the quicker eviction process used for tenancy agreements, again impacting the time the lender has to respond. With ground rents having increased since the review, more long leases on residential properties are ‘technically’ at risk of being caught by conflicting legislation.
This combined product is available on a lender-only basis for existing residential properties, where the borrowers are private individuals, with premiums starting at £248 for a policy limit of £100,000. You can find the policy under the ‘Defective Lease’ heading on the products page of our website.
Flying Freehold and Pedestrian Access
Our second new combination is a Flying Freehold and Pedestrian Access policy. Typically required for a property where a passageway passes beneath the flying freehold, this product now combines two commonly requested policies and provides cover where:
- there are inadequate pedestrian rights of way to and from the property, and the owner of the access attempts to prevent the use of it
- the property may suffer loss or damage if it is not possible to enforce the adjoining owner to contribute towards, and allow access for, any necessary repairs and maintenance.
With premiums starting at £146 for a policy limit of £60,000, the policy can be found under both the ‘Flying Freehold’ and ‘Access’ headings on our website. There is also a ‘no survey’ option available to accommodate cash buyer transactions, which can often proceed without a property survey.
Making life easier
You’ll find more than 90 combined covers to choose from on ICON at isis-icon.co.uk, and if you can’t find the combination you need, just give us a call. Even if there’s no standard combined cover, we’ll provide you with separate policies but still with the benefit of a ‘combined covers’ discount. Call one of our specialists on 01603 761515 or email firstname.lastname@example.org.