Good leasehold title- Indemnity Insurance?

[Bytor]

Just about to buy a terraced house which it transpires is leasehold and has only a good title lease rather than an absolute title - This is due to lost paperwork from the freeholder granting the lease - property is over 100 years old, so if the freeholder hasn't come back with a querry in that time then unlikely (but not impossible) in the future.

The solicitor informs this is common in Hants for terraced properties. Got over 900 years left on it so not worried about the term. Concern is over status of lease. Sellar has agreed to take out indemnity insurance and informed this should be OK.

My concern is what problems I will face when I come to resell. Solicitor says, she has had only a few cases where people have pulled out, and as this has indemnity insurance, then should not affect any mortgage applications.

Does anyone have any experience with this, and any comments on this!!

Regards & Thanks in advance

[jeffrey]

Just about to buy a terraced house which it transpires is leasehold and has only a good title lease rather than an absolute title - This is due to lost paperwork from the freeholder granting the lease - property is over 100 years old, so if the freeholder hasn't come back with a querry in that time then unlikely (but not impossible) in the future.

The solicitor informs this is common in Hants for terraced properties. Got over 900 years left on it so not worried about the term. Concern is over status of lease. Sellar has agreed to take out indemnity insurance and informed this should be OK.

My concern is what problems I will face when I come to resell. Solicitor says, she has had only a few cases where people have pulled out, and as this has indemnity insurance, then should not affect any mortgage applications.

Does anyone have any experience with this, and any comments on this!!

Regards & Thanks in advance

Just found this.
Good leasehold title should be acceptable security. CML Handbook permits solicitor to certify it as good and marketable; to have indemnity insurance premium payable is rather unfair (+money for old rope so far as insurer is concerned!)

[Richard Webster]

What part of Hants? Southampton area or elsewhere? Have a look at http://www.rwco.co.uk/southampton_leasehold_houses.htm on my website where I explain about the issue for the Southampton area.

It certainly is very common - and even more common where Jeffrey is in Sheffield. The need for the policies is very debateable and Jeffrey takes a common sense Northern attitude which I assume most Sheffield solciitors would take. I didn't bother when I acted on the purchase of a terrace in Sheffield a year or two ago. In Hampshire although they are common in Southampton/Eastleigh, maybe Winchester, I do find that solicitors in Portsmouth, for instance, don't tend to come across them. For this reason, because the issue is localised we tend to find that a Good Leasehold Indemnity Policy seems to be required if only because another buyer's solicitor will probably ask for one - but the likelihood of a claim being made is very very small!

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying client