mining and mineral indemnity policy

[Tryingtomovehelp]

Hello, we're in the middle of final enquiries and our vendor is refusing to provide a mining and mineral indemnity policy. We'd have to get it ourselves which I don't mind, just want to move the process along. However, I am not sure what it means. Could someone please shed some light on this please ?Tia

First off is the house in England & Wales? And in an area that has a history of mining? I'm assuming your solicitor has suggested one because the searches have brought this up? The need for one could depend on what the house sits on - if it's coal it's not going to be mined any time soon.
If it is common practice in the area then the vendor's solicitor should advise them so - and mortgage companies may insist on them.
I do wonder how many of these sort of indemnities are ever claimed on, they're a sort of protection rackets really.

@Laughingravy thanks again for replying. The house is in the south east of England

And I believe the mortgage company does insist on having one

Hmmm. Tricky one and frustrating. In the grand scheme of things a couple of hundred quid out of a sale of hundreds of thousands is nothing. And the vendor's EA and solicitor should emphasis this. Even if this sale falls through they will likely hit the same wall again. Not to mention when they bought their seller may have had to buy one for them.
Yes it could be your mortgage company are playing it very safe - what are the chances of a rights owner turning up and demanding access to their minerals. Not to mention who owns such rights is often lost in the mist of time.
I should call your solicitor to get some clarification on what exactly is the issue - I'd guess the deeds include a mines and minerals exception. So the home owner doesn't own the minerals beneath them and technically someone could exploit them.

Thank you , we will definitely ask our solicitor why the vendors are refusing to pay it and what the implications are. It seems strange to us that a vendor who is keen to complete asap wouldn't get everything sorted