Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • baisui
    • By baisui 18th Jun 17, 10:55 AM
    • 10Posts
    • 1Thanks
    baisui
    indemnity policies
    • #1
    • 18th Jun 17, 10:55 AM
    indemnity policies 18th Jun 17 at 10:55 AM
    I'm buying a house with loft conversion and extension -- they are both well over 10 years old, but there's no documentation. The vendor is buying indemnity policies to cover building regs and planning enforcement. Everyone we have spoken to says enforcement is vanishingly unlikely.

    Our solicitor has asked them to increase the indemnity value from £300k, which I suppose is what was covered when they bought the house, to £400k, which is the purchase price. They are refusing.

    It doesn't seem that important to me, and we want to get through the sale quickly for a number of personal reasons.

    Does anyone have a view on this? Is it important? Should we dig in?

    How much would such a policy cost in any case?

    Many thanks
Page 1
    • eddddy
    • By eddddy 18th Jun 17, 11:19 AM
    • 4,642 Posts
    • 4,300 Thanks
    eddddy
    • #2
    • 18th Jun 17, 11:19 AM
    • #2
    • 18th Jun 17, 11:19 AM
    If you're buying with a mortgage, your mortgage lender may have specific requirements for indemnity cover.

    If you don't meet their requirements, they won't give you a mortgage.


    Is the vendor talking about taking out new policies, or simply passing on the policies they took out when they bought?

    It seems a bit petty to agree to buy new policies with £300k cover, but refuse pay a few pounds extra for £400k cover.

    Anyway, if might be worth finding out via solicitors the cost of the policies before deciding next steps. (You might get a rough idea here: http://www.gcs-title.co.uk/instant-issue/quick-quote-online/)
    • lincroft1710
    • By lincroft1710 18th Jun 17, 3:33 PM
    • 9,314 Posts
    • 7,246 Thanks
    lincroft1710
    • #3
    • 18th Jun 17, 3:33 PM
    • #3
    • 18th Jun 17, 3:33 PM
    The important thing to worry about loft conversions and to a slightly lesser extent ground floor extensions without building regulation approval is - are they safe? There are particular requirements for loft conversions including access, fireproofing and escape, structural safety and natural light and ventilation.

    An indemnity policy won't help you if a fire breaks out and quickly spreads or the floor gives way.
    • baisui
    • By baisui 19th Jun 17, 8:03 PM
    • 10 Posts
    • 1 Thanks
    baisui
    • #4
    • 19th Jun 17, 8:03 PM
    • #4
    • 19th Jun 17, 8:03 PM
    @eddddy

    They're passing on old policies -- does that mean they'd need to take out new ones if they needed to raise the indemnity amount, or would they be able to pay to top it up to the increased amount?
    Last edited by baisui; 19-06-2017 at 8:07 PM. Reason: to add name of person I'm responding to
    • baisui
    • By baisui 19th Jun 17, 8:05 PM
    • 10 Posts
    • 1 Thanks
    baisui
    • #5
    • 19th Jun 17, 8:05 PM
    • #5
    • 19th Jun 17, 8:05 PM
    @lincroft1710

    I'm not really worried about that -- it's obviously been like this for a long time, probably 30+ years, and it's had heavier use than we'll give it. Probably most of the requirements in force now wouldn't have applied then in any case.
    Last edited by baisui; 19-06-2017 at 8:07 PM. Reason: to add name of person I'm replying to
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

330Posts Today

2,737Users online

Martin's Twitter