Product Focus: Mines and Minerals Development of manor house and grounds Background The insured was a leading housing developer who had acquired a site consisting of a manor house with ancillary grounds. This site was currently being used as offices, however, this would change with the proposed development. No formal planning permission was in place for the development, and the developer required an insurance solution due to an exception on the title to the land relating to the mines and minerals interest. Therefore, the risk is that this interest did not vest with the seller of the land but instead, with a third party.
Ramifications of risk The risk presented to the housing developer was two-fold for this policy type. Firstly, there is a risk that the owner of the mines and minerals interest exercise their rights at some point in the future to the mines the minerals. Secondly, there is the trespass risk which could ultimately result in an injunction and or
damages where the owner claims the digging and laying of foundations, cabling etc. to develop the site trespasses into the owner’s mineral strata. In addition to these considerations, the developer was concerned that the title was not good and marketable due to this exception. The developer, who was hoping to secure lending for part of the scheme would need to demonstrate the risk was effectively managed to satisfy the lender’s requirements. The developer was also conscious of potential issues surrounding the risk which may be raised by the end plot purchasers.
Outcome Following full analysis of this matter, the transaction was supported by a First Title Known Risk title insurance policy to protect the developer, their lender and successors in title in the event that the owner of the mines and minerals interest successfully brought a claim.
Call: +44 (0)207 160 8100 Email: info@firsttitle.co.uk Visit: www.firsttitle.co.uk First Title Insurance plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. First Title Insurance plc is registered in England under company number 01112603. Registered office: First Title Insurance plc, ECA Court, 24-26 South Park, Sevenoaks, Kent TN13 1DU.
Leading Title Insurance 1248-0219