we are selling our property but part of an extension we built

Hi

Thank you for your question and patience, I’m Tom and I’ll try to help you.

The general underwriting criteria which you must meet in order to be able to obtain indemnity insurance for a flying freehold is:
1. The property must have been used as a residential property in the last 12 months
2. The structure which forms the flying freehold must have been in place for longer than 12 months
3. A survey or valuation not more than 6 months old did not reveal structural problems with the flying freehold
4. That you must be able to confirm that you are not aware of any diufficulties in carrying out repairs or maintenance to it
5. You must not be aware of any objkection, challenge or dispute realting to the repair prior to the commencement of the policy.

If you are able to comply with the above then you will almost certainly find that a insurer will offer indemnity insurance for this.

The question is whether or not the Buyer and their Solicitors and the buyer’s lender are prepared to proceed on the basis of indemnity insurance. Generally, if it is a small portion of the building which forms the flying freeholder (which it sounds like this is) then the solicitor will be okay with it provided that they are satisfied the Buyer understands the policy and it’s limitations.

Some lenders accept indemnity insurance for flying freeholds and some do not, it will depend on who the buyer’s lender is as to whether they accept it or not.

My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question.


Kind regards,


Tom

Hi,

If you are selling the property then, frankly, if the buyer's are prepared to proceed on the basis of of an indemnity policy then I would do it that way. It'll probably be cheaper than the alterations and you always have alterations as an option in the event that they cannot proceed on the basis of indemnity insurance.

Kind regards

Tom

Hi,

Sorry, I now see that you mentioned that they raised it in a previous sale.

In these circumstances, the usual self-service indemnity policies that solicitors can use would probably not be appropriate so they would have to go direct to the insurer to ask for a bespoke policy based on the specific circumstances. The insurer would provide them with a quote, which is likely to be a little more expensive but probably not prohibitively so.

Kind regards,


Tom

You're welcome.

Please do remember to rate my answer once you are finished though.

Good luck.

Kind regards,

Tom