Indemnity insurance for leasehold house

[yesterdaystotalsteps123]

Hi, I'm in an area where leasehold houses are very common. My ground rent is £3.50 per year. Solicitors can't track down who holds the freehold and ground rent hasn't been collected in years. Buyers solicitors have asked me to pay for 6 years worth of lease (£21 so fine) but also to get an indemnity insurance policy which comes in at £147 which seems extortionate. I've said no but will I have to?

I had a similar issue and the price was about the same.

The issue with the 3.50 a year isn’t the cost of paying it all. It’s the fact that normally there is a clause saying that non payment will allow the freeholder to put a charge on the house and/or take possession.

In that situation I would advise to pay the indemnity.

£147 is surely a tiny proportion of the overall price/costs of moving. Are you willing to risk your buyers not completing?

Thanks. My solicitor hasn't explained anything!