No mortgagee protection clause? No problem!
The cover available under our missing mortgagee protection clause policy hasn’t changed. But the type of transactions that we can cover has.
We’re now able to provide the policy for transactions where a limited company landlord is acquiring a residential leasehold property for its buy-to-let business, as well as for purchases where the borrower is a private individual.
Available on a lender-only basis, our cover is available for transactions involving residential leases (particularly older leases) that don’t contain a mortgagee protection clause. The clause ensures that a landlord must notify a lender if they intend to start forfeiture proceedings against the leaseholder, for a future breach of the terms of the lease. Our policy protects lenders in this scenario, as they may be unaware that forfeiture proceedings are taking place. Without this knowledge, lenders will be unable to respond and claim relief from forfeiture – putting them at risk of a financial loss under the mortgage if a lease is forfeited.
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.
