Does indemnity insurance cover lack of building regs approval or just planning

papermoney · 23 June 2007 at 10:18PM

permission?

I am waiting for the vendors solicitors to confirm that the garage conversation was converted to the correct stand. The vendors do not have any planning permission or building regs approval - it was done 10 years ago so it is out of the time frame the council would do anything but the soliciotr needs to let the mortgage lender know there isnt any bilding regs.

Idemnity insurance has been mentioned but i didn't think it covered building regs but may have just made that up as im not sure why i think that.

Jonbvn · 23 June 2007 at 10:30PM

After 10 years, planning permission is no longer relevant. However, building regs are very important, since satisfying them are what ensures your property is safe. Therefore, the indemnity insurance will cover building regs.

HTH

papermoney · 24 June 2007 at 12:46PM

I have just re read the letter from my solicitor and he is saying that indemnity does not cover building regs. He has said he will write to the lender and see how they want to proceed. They may ask for a full structural survey.

silvercar · 24 June 2007 at 3:41PM

In the same way that there is only 4 years for a council to object to work done without planning permission, there is only 1 year to object to a lack of building regs.

You should be directing questions to your surveyor about the construction of the conversion. Provided your surveyor is happy that the building is solid, you could either live with the lack of building regs or insist that the seller takes out an indemnity policy. All the indemnity policy will do is give you peace of mind when you sell. As 10 years have past there is no enforcement action that anyone can take. An indemnity policy only covers action being taken (an impossibility) it doesn't cover shoddy workmanship, hence my suggestion that you speak to your surveyor.

papermoney · 24 June 2007 at 7:47PM

I don't know who the surveyor is. I know that sounds daft. We paid the money to northern rock who dealt with it all. The initial survey said that the solicitor should convince themselves that everything is 'sound' I think this is what the solicitor is trying to do with the vendors solicitor.

I know the vendor can not prove it is sound. So not sure what happens next.

SpampMan · 26 June 2007 at 7:31PM

Silvercar is correct, the period in which enforcement action can be taken has passed. Your solicitor, on the other hand, will no doubt insist on an indemnity policy before they give the OK to the lender. I have personally encountered this situation. I gave the vendor the option of getting BR approval on their extension (this was within 4 years of the work and as the vendor did not declare lack of building regs on the SPIF, I asked building control if they had a record which meant that a BR indemnity policy could not be obtained). They didn't, I bought another house and the vendors could not sell theirs.

papermoney · 26 June 2007 at 9:23PM

Thanks everyone. I have received a letter from my solicitor saying that the lenders are still happy to proceed aslong as I am aware of the situation and satified with the condition of the work.

My sol is just confirming with them if this means they want me to have a survey done on the property or not.

SO fingers crossed by the end of the week, we'll know more. This house buying is becoming a nightmare.

SpampMan · 26 June 2007 at 9:28PM

You have an understanding lender and I may have misjudged your solicitor. Many sales fall through for this issue.

papermoney · 26 June 2007 at 9:32PM

I have had a run in with the lender right at the start of the process and did get it sorted. They are probably just wanted to get it over and done with to get rid of me lol.

The sol has annoyed me but i feel we are finally making headway, so going to stick it out.

steelercaz13 · 10 December 2009 at 3:01PM

Any update on what happened here? I am in a similar position at the moment and panicking a bit about buying the property we're intersted in... :-(

Doozergirl · 10 December 2009 at 3:24PM

Papermoney bought her house and has since sold it, I think!

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Does indemnity insurance cover lack of building regs approval or just planning

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