Your Guide to Absence of Easement Indemnity Policies

Often to sell your home, purchase a property, or have your mortgage approved, you will need an absence of easement indemnity policy in place. Your property may already have this one-time premium insurance document, but sometimes this document may have been lost or may need drafting.

What is Absence of Easement Indemnity Insurance?

An absence of easement indemnity policy is designed to protect you, the property owner or buyer, from financial loss due to a lack of legal right for access (easement of access). In the UK, for some properties, you may need physical access to private land in order to reach the property. Some examples of this would be the need to drive on a private road to reach the front or back of your property or a shared driveway.

By procuring absence of easement indemnity insurance, you can feel secure knowing that your policy can cover you for legal fees, compensation due to possible loss of access, and loss in your property value. Without this insurance, if someone were to challenge your access, you must cover your own legal fees and could potentially lose access without any form of compensation.

Without this indemnity policy in place, it could make selling or remortgaging your home difficult, as many mortgage lenders will require this, and buyers will be conscious of buying a property without protection for disputed access rights.

It is important to note that for at least 12 months before the policy is put on risk (activated/started), the right must have been exercised and unchallenged. Obtaining a statutory declaration (a formal statement affirming the truth, to the best of one’s knowledge) from the seller confirming the position throughout their period of ownership may also be necessary. Once the policy is activated, you are covered for financial losses and any compensation due associated with the indemnity insurance.

Why does it matter?

• Protects you if a neighbour blocks your access.
• Covers associated legal costs.
• Entitles you to potential compensation.
• Helps retain your property’s value.
• Required by most mortgage lenders.
• Reduces delays and issues when selling or remortgaging.

Common types of easement issues

• Access Rights: No legal right to a shared driveway, path, or entrance.
• Parking: Use of a parking space without legal permission.
• Maintenance Access: Requiring use of a neighbour’s land to maintain part of your property.

How to know if I need this insurance?

There are many situations where you may need this insurance - either to complete a sale, be approved for a mortgage, or simply for peace of mind.

You will need this insurance in the following cases:

• Missing legal documents for access.
• Informal or assumed right of way.
• Recent construction over private land.
• Neighbour objections or queries during a sale.

How to check if you’re covered?

• Property Documents: Review your title deeds and associated legal documents.
• Solicitor or Conveyancer: If you used a solicitor to help complete the purchase, they will have records of any associated indemnity policies.
• Mortgage Lender: If your lender required this type of insurance, they may be able to confirm that they hold a copy of the policy.

When looking for your insurance policy, it may be titled as: Absence of Easement Indemnity, Lack of Easement Indemnity Policy, Legal Indemnity Insurance – Right of Way, Access Rights Insurance.

Get covered – What to do next?

If you believe you need an Absence of Easement Indemnity Policy, you can contact us now by calling 0345 603 0708 or emailing indemnities@legalbrokers.com, and a member of our team will have your new insurance cover drafted within ____ day(s).

FAQ

Can I sell my house without absence of easement indemnity insurance?

Yes, although it will be harder. Buyers, solicitors, and mortgage lenders may request this insurance to complete the sale.

Will my mortgage be refused without this policy?

As most mortgage lenders require this indemnity insurance, if there is no legal right of access your mortgage may not be approved.

Is it legally required?

No, there is no legal requirement for this policy, but it is often necessary for mortgage lenders and recommended by solicitors.

What if access has been used for years?

Long-term use of the access may help you gain rights by Easement by Prescription, but this is not guaranteed and will require evidence.