What are Indemnity Policies?
An Indemnity Policy is like an Insurance Policy with a one-off premium. They can be obtained for a number of things but the two most common ones are Buildings Regulation Consent Indemnity Policy and Planning Consent Indemnity Policy. These are usually provided where a Seller has not obtained the relevant consent but they are no substitute for the consent as there is no evidence that the works that the Seller did not obtain consent for have been done properly and you should ensure that your Surveyor gives you his opinion that the works are structurally sound. The policy covers the position if the Local Authority ask you to put the property back to its original condition. The indemnity policies are transferable to your Buyer in the future but you may be expected to top them up to provide cover up to the level of increase in value of the property.
