Claim Case Study: Access Ransom strip Background The insured was developing an estate of five luxury residential properties. The development was set back from the street behind an existing terrace of houses, with an access way leading to and from the public road. This access way also included, for these residential properties, additional parking spaces, space for recycling bins and a turning space for cars.
The evidence available to defend any such claim by the owners of the ransom strip was not sufficient as the access way had previously formed part of a garden belonging to a neighbouring property, and had never been used for access or parking.
The access way included a strip of land which the insured did not have title to, and which was registered to a third party. This strip separated two of the parking spaces from the access way, forming a ransom strip, and also included the turning circle.
As this challenge could not be defended, First Title started negotiations with the owner of the ransom strip for the insured to purchase the land to bring the matter to an end. A successful negotiation resulted in a price of £40,000 plus reasonable costs being agreed. An amount of £44,800 was paid by First Title to the owner of the land in accordance with the terms of the policy and the ransom strip was transferred to the insured. First Title also agreed to meet the insured’s reasonable legal costs of £3,644.
Challenge The insured received a pre-action letter from the third party, which threatened to fence off the ransom strip. The insured raised the claim with First Title as the policy had been issued for a lack of easement for vehicular and pedestrian access, for a turning circle and for refuse collections.
Solution
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