Legal Indemnity Insurance policies for issue by solicitors and conveyancers

Forfeiture of Lease

The Forfeiture of Lease legal indemnity insurance policy provides cover for a mortgage lender when the landlord of a single private flat or maisonette based within England and Wales exercises, or attempts to exercise, a legal right to forfeit the lease during the term of the mortgage advance granted at the policy’s commencement date.

The policy can be used with residential properties only and does not cover the buyer or owner of the property.

Click here to download our Demands & Needs statement 

Full Key Facts can be viewed by clicking here.

 

Key Features and Benefits

If during the term of the mortgage advance the landlord exercises, or attempts to exercise, a legal right to forfeit the lease, the policy provides cover for the following, up to your selected  limit of indemnity *:

  • any irrecoverable sums expended with our consent to protect the lender's interest in the property, including the cost of complying with any court order
  • the reduction in the value of the lender's interest in the property, if the lease is terminated
  • costs and expenses with our consent. 

The policy does not provide cover for the owner of the property, except for the named mortgagee when in possession.

The policy remains in force from its commencement date for the duration of the mortgage advance.


This ‘At a Glance’ description of cover does not set out the full terms and conditions of cover or the exceptions and limitations which apply to the policy, all of which can be found in the policy document. Please also refer to the Key Facts policy summary.
* For additional cover and limits of indemnity exceeding £1m, see Bespoke Policies

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