Shared Ownership Question!

Whisper87

Hi Folks,

Would anyone know if we need to take out life and home insurance before closing the sale?

I thought it might just be home insurance, but someone suggested it could be both.. Also do i insure the whole amount, or just the 50% that i will be paying back for now?

How do i calculate a rebuild value for the house?

And does anyone know any companies which are fairly cheapish? - For shopping around purposes?

Thanks a mill for all your help!

Davy

Think you would need both, but you will probably just have to do 50% of the value

The_Conductor

Its standard for a mortgage lender to have life assurance to the value of the mortgage stipulated as a term when granting the mortgage. Most lenders will try to push you in the direction of their inhouse life assurance company (think BOI Life for example) but there is no requirement that you have to use their internal providor.

It does vary from lender to lender- but if you request a copy of the standard terms and conditions that apply to any particular lender- they will normally give you a shopping list of what they're likely to look for.........

juke

Based on memory only: If your local authority is funding the mortgage element of the purchase (which I think is the norm), then you normally don't need to take out a separate life policy.

I think you will need building/fire insurance - their own valuer should set the minimum amount you need to insure for.

They will send you a letter with specific instructions for you to follow.

Whisper87

Thanks for d info folks!

Fancy That

Yes you need both before closing the sale.

Word of advice make sure you get the level term life insurance...i.e. the one that is not decreasing with the payments of your home.