Absent Landlord Indemnity Policy

When a leasehold landlord/freeholder can’t be traced (or is in liquidation or receivership) ground rent and service charge may not be demanded, and consent for works or assignment can’t be obtained.

The Absent Landlord Indemnity Insurance Policy (also known as Absentee Landlord or Missing Landlord Insurance) we arrange is provided by insurers and helps keep your transaction moving with clear terms.

Background (In what circumstances is cover required?)

Absentee Landlord insurance covers the situation where the landlord of a leasehold property cannot be traced or is in liquidation or receivership. Consequently, rent has not been, and is not being, paid or demanded and consent cannot be obtained for work to the Property or assignments of the lease.

Note. In circumstances where development is going to give rise to a breach of a leasehold covenant, a separate Restrictive Covenant Indemnity may be required.

Risks covered:

Losses arising as a consequence of action taken (including rights of re-entry) in respect of arrears of rent/service charge, failure to comply with assignment conditions, breach of covenants in the lease in relation to works carried out on the property.

This includes the market value of the Property should the Insured be dispossessed or evicted under a court order damages payable to &/or costs & expenses recoverable by the landlord and/or costs and expenses necessary for an application for relief from the court.

Frequently asked questions

What if the absent freeholder later reappears and demands payment or consent?

If the absent freeholder comes forward after completion, the policy is designed by the insurer to protect the insured against a valid claim arising from unpaid rent or missing consents. Insurers will usually ask for clear ground rent receipts or other evidence showing reasonable efforts to maintain payments. This helps demonstrate that you’ve acted appropriately while the freeholder was missing.

Do I still need to follow the lease covenants?

Yes. Even when a freeholder cannot be contacted, you’re still expected to comply with your lease covenants as far as possible. The insurance covers the risk of enforcement rather than granting consent itself. If you’re unsure whether Absent Landlord Insurance alone is suitable, seek advice from your solicitor or insurance broker before proceeding.

Can this cover apply to a single private dwelling?

Yes. The policy can apply to leasehold flats, maisonettes, or a single private dwelling where the landlord is untraceable or insolvent. It provides reassurance for buyers, lenders and solicitors when it’s not possible to obtain consent or rent demands because the freeholder is missing.

What if multiple leases exist for the same property?

Where more than one lease relates to the same property, each situation will be reviewed individually. Depending on the details, one policy may extend to all interests, or separate cover might be required. Your LawSure adviser can review the documentation and confirm the most suitable option for your transaction.