More and more lenders accepting Search Delay Insurance
Barclays Bank, Halifax, Lloyds Bank, Nationwide, The Royal Bank of Scotland, Yorkshire Building Society, and Skipton Building Society are just a handful of an increasing number of lenders now accepting Search Delay Insurance – according to the UK Finance Mortgage Lenders’ Handbook for Conveyancers, as of 22nd February 2021.
The use of Search Delay Insurance is also permitted under CoPSO guidance; “where local authority delays mean search information cannot be obtained within the timeframe required by the conveyancer and their client”. By contrast, “‘No Search’ Insurance products which provide insurance as a substitute for definitive search information, not just as cover for any delay until the search information is available, are not compliant with the Search Code.”
This clarification is a welcomed relief to residential conveyancers, many of whom are now feeling the pressure to pull out all the stops to get their transactions over the line before the end of the Stamp Duty holiday on 31st March – even with the expected announcement of a 3 month extension being confirmed in the Spring Budget.
Where can I find Search Delay Insurance?
Offered by tmgroup, in partnership with legal indemnity provider CLS Property Insight, Search Delay Insurance is available to order now on tmconvey and tmconnect:
• A limit of indemnity up to £1 million
• A site size of up to 2 acres
• £19.50 inc. IPT
The policy provides the insured party with financial cover in the event that an entry that would have been revealed in a delayed search leads to a loss under the terms of the policy.
Areas of potential cover include loss of market value and professional and legal costs associated with a loss event – for both New Build and existing properties – in relation to the following searches; official Local Authority, drainage and water searches, coal mining and Q22 commons/green enquiry. PCCB regulated equivalent enquiries are also included under the policy cover.
For more information and to see a sample policy, please contact your Client Relationship Manager.