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Mineral & Mining rights indemnity insurance


Grosey

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Living in Cornwall comes with the privilege of all mining and mineral rights on your freehold land being owned by Prince Charles... That's fine, I'm fairly sure there's no tin in my patch of wasteland anyway. 

 

However er mortgage company now want indemnity insurance in place before they approve the mortgage, again fine except they have stated they will arrange this with a rough policy cost of £1000! A quick Google search has lead me to believe this is them being majorly opportunistic, however has anyone actually taken out one of these policies and could they give me an idea of cost? 

 

Generic title indemnity policies for things such as flying freehold or various covenants etc seem to be up to £300 maximum, is a mineral rights policy really likely to be that different?

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I live in Cornwall and have owned several houses. Previous ones, mining rights owned by Bassets. This one, at Wheal Clifford (the oldest mine that eventually made up Consolidated Mines) was owned by Williams' but now Rio Tinto. I have never been asked for indemnity, all, or at least most of Cornwall land underneath has mining rights owned by someone other than yourself. Argue this, who is your lender? Maybe Steamy Tea can come in on this and add his ha'penny.

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For the build I am borrowing through folk2folk, they are a peer to peer lender - it has saved me jumping through the hoops of a self build mortgage application, however this issue has cropped up at the last minute. 

 

As as you say in mid to west Cornwall there are actually a lot of mines where rights have actually been acted upon, I'm in Saltash about 300m from the Tamar River, there's never been a mine in sight of here! 

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Not really.  I had a mining survey done as I am in a mining area (not far from Mafaldina).  But as I paid cash, and the house was only 18 years old, I decided to not worry about it.

 

I thought that money lenders had to accept 'third party' insurance policies these days, assuming they have the right cover.

 

It may be worth pointing out that no fracking is going to happen in Cornwall.

Edited by SteamyTea
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