Wednesday, 8 July 2015

Notice for CML Handbook Changes to Insurance Requirements

The CML is introducing an amendment to the Lenders Handbooks for England and Wales, Northern Ireland and Scotland on Monday 30th November 2015. The change will remove reference to Part 2 in the buildings insurance requirement sections of the Handbooks (clause 6.14. England and Wales, 6.13 Northern Ireland and 6.14 Scotland).  The clause will require conveyancers/solicitors to make reasonable enquiries that buildings insurance cover has been arranged for the property from no later than completion and to remind the borrower that they:

  • Must have buildings insurance in accordance with the requirements of the mortgage conditions no later than completion, and
  • Must maintain such buildings insurance cover throughout the mortgage term

Lenders adopting CML Handbook will no longer have an additional list of requirements relating to buildings insurance in part 2 of the Handbook. The change will relate to certificates of title lodged from 30th November.

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