What are Indemnity Policies and when do you need one?

An indemnity policy is a legal document which acts like an insurance policy, as it indemnifies both the seller and the buyer when there appears to be a problem in the title. There could be several reasons why an indemnity policy may be required, there could be for example a lack of buildings compliance for installation of a boiler or windows, it could simply be that deeds or searches to the property are missing.

It is the responsibility of the seller to obtain and pay for an indemnity policy, however, it is important that the same is approved by the buyer. The costs of the policy vary, however. it is usually at a small one-off price and this is normally taken into consideration at the end of the transaction.

Right to Buy

What is it?

The right to buy scheme was put into place by the Housing Act 1980 by the Conservative government. It provides the opportunity for council and social housing tenants to buy their home at a discounted price.

If you are eligible for the right to buy, there is a maximum discount available depending on where you live. The maximum discounts available varies as follows:

London - £103,900

The rest of England - £77,900

Wales - £8,000

What are the requirements?

In order to be eligible for the right to buy scheme, you have to satisfy all of the following conditions:

You have been a public-sector tenant for three years;
The property you are intending to buy is to be your main place of residence;
The property is self-contained and you are not sharing the property with other people; and
You have no legal issues with debt.

Wales

The Welsh Government are currently seeking to abolish the right to buy scheme by way of The Abolition of the Right to Buy and Associated Rights (Wales) Bill, which was introduced in March 2017.

There are also a number of local authorities who have already suspended the right to buy scheme under The Housing (Wales) Measure 2011 for a period of up to five years. This includes Local Authorities in Anglesey, Carmarthenshire, Flintshire and Swansea.

England

The right to buy scheme is still in place in England and no proposals have been put forward for it to be abolished.