Introducing the new Perfect Title policy: key takeaways from our lender webinar
We recently hosted a webinar for lender clients and their legal advisers to introduce our new Perfect Title policy for lenders, taking attendees through the key changes, the thinking behind them and what they mean in practice.
While the policy has undergone a significant refresh, the fundamental proposition remains the same. The changes have been designed primarily to make the policy clearer, more flexible and better aligned with the realities of today’s lending environment.
Here are some of the key takeaways from the session.
A clearer, easier-to-navigate policy
One of the most noticeable changes is the structure of the policy itself.
We have reorganised the wording to make it easier for lenders and their advisers to understand how the coverage operates and quickly locate the information they need. Uninsured Matters – previously referred to as exclusions – are now brought together in one place, the claims process has been consolidated, and the Underwriting Criteria appears at the end of the document.
The Insured Risks remain broadly familiar, but we have simplified, consolidated or clarified a number of areas. These include insolvency, occupational tenancies, leasehold matters and local authority consents. We have also introduced a more general fraud Insured Risk, bringing greater clarity around the types of fraud to which the policy can respond.
Greater flexibility for today’s lending environment
A key development is our new approach to Approved Jurisdictions.
Rather than relying solely on the historically prescribed list, the new policy allows us to work with individual lenders to consider a wider definition based on factors such as their borrower profile, KYC procedures and ID checks.
It isn’t a move to worldwide coverage by default, but it gives us greater flexibility to reflect the lending activity of individual clients. The policy can also accommodate specified UK rights to reside regardless of nationality, subject to the appropriate verification.
Clearer treatment of development transactions
We have now separated Insured Use into Continued Use and Development Use, helping to clarify how the policy responds across different property and transaction types.
Residential and commercial properties are brought together under Continued Use, while the criteria for Development Use have been updated. Where a transaction qualifies as Development Use, the majority of Insured Risks can continue to apply, subject to the specific limitations set out within the policy.
Accurately reporting the intended use remains important, particularly where works are planned during the term of the loan.
Updated conveyancer and ID requirements
The new policy increases the minimum External Conveyancer requirement from two to three appropriately regulated partners, directors or members. This applies to the borrower’s legal representation as well as the lender’s, alongside requirements around adequate professional indemnity insurance.
We have also updated the Underwriting Criteria to reflect developments in electronic identity verification.
The introduction of advanced EID, including biometric verification using the NFC chip within a passport, can remove the need for an additional pre-completion check where the required standard has been met. Other changes provide greater flexibility around repeat borrowers, overseas borrowers and the certification of paper identification.
What happens next?
The webinar generated some excellent questions, particularly around existing pipeline cases, Approved Jurisdictions, conveyancer requirements, pricing and how lenders will move onto the new policy.
Importantly, we will not simply switch existing lender clients to the new wording overnight.
We will work with clients individually over the coming months to agree an appropriate transition. This may include refreshing elements of the underwriting process and agreeing how existing pipeline business should be treated. Our current ambition is to retire the previous Perfect Title policy by the end of 2026.
For most clients, we also do not expect the enhanced policy to result in increased premiums. Our existing rating model and minimum premium structure remain, although older pricing arrangements may be reviewed as part of the transition.
Thank you to everyone who joined us and contributed questions during the session.
If you weren’t able to attend live – or would like to revisit any of the topics discussed – you can now watch the webinar recording and read our Q&A, where we answer many of the practical questions raised by attendees.
If you would like to discuss the new Perfect Title policy, your existing arrangements or what the transition will mean for your organisation, please get in touch with our team.
