London & European, a Continental provider of insurance services to enhance the speed, simplicity and security of property transactions, recently predicted that a surge in the uptake of title insurance policies will be undertaken by Europe's prime lenders. The company believes that building societies in particular will take up the policies.

“We've experienced a 116 percent increase over the past year in inquiries from this community as its focus has shifted from growth or market share to risk," said Christian Bearman, the company's director. “Since the credit crisis began just over a year ago, it has become clear that the prime market has recognised the value that title insurance can deliver in adding an extra layer of security to their mortgage portfolios."

He said that a practice that had been an accepted risk management tool amongst non-standard lenders for several years is now quickly gaining equal status amongst building societies and other prime lenders. Bearman pointed out the prime lending community faces three major risk categories which are rising exponentially in the current climate, which are repossessions, mortgage fraud and attorney negligence.

He claimed that with 25 percent of all United Kingdom property transactions having a title defect that could make a property impossible to sell, the risk to a building society or high street lender of not being able to recoup its investment, is significant. London & European believes that title insurance offers an effective risk management tool as it covers losses against existing and historical title problems.

Bearman claims that few Europeans realize that title insurance also covers fraud and forgery by a borrower or attorney.

“Building societies and high street lenders are in unparalleled territory in terms of risk and liquidity challenges," he added. "Title insurance offers an increasingly attractive proposition in helping them manage their risk exposure more effectively both now and in the future.”

Over the years, London & European has established itself as a leader in the provision of products and services that help to accelerate the complex processes of property transactions. Recent company developments include exciting web-based initiatives that help conveyancing attorneys and lenders save valuable time in their processes, streamlining workflow and providing enormous value for all parties.