Indemnity policy for planning permission on leasehold property

p1985

Hi all, first post so be gentle.

We are first time buyers at the latter stages of buying a leasehold property. We have today been advised that the current owner of the property does not have any documentation regarding a small extension (porch) to the side of the property. They have lived their over 16 years and they suggest the extension was in place before they moved in. As it is leasehold property it may well be that the extension was not given permission by the landlord. Our solicitor has suggested to the seller that they put in place a indemnity policy to protect us the buyers should action be taken.

Can anyone advise if this is worth it? Also our solicitor advised that after 20 years action cannot be taken. So it may be that the work done is nearing this 20 year deadline.

Can anyone shed some light on this for us? any help would be appreciated.

KellsBells

Hi,
An indemnity is quite possibly the best course of action. Otherwise your mortgage lender is unlikely to lend on the property.

And if you haven't already been told... don't approach the council - this can make it difficult for an indemnity policy to be arranged. I would suggest on this case you take your solicitor's advice.

p1985

Thanks for your advice KellsBells, do you know if it is the case that after 20 years no action can be taken against you by the landlord? Ive searched and searched but cannot find any answers on this at all.

Richard_Webster

-This has nothing to do with Planning Permission and therefore whether or not you talk to the Council is irrelevant. Don't talk to the landlord/freeholder about it! Even if Planning Permission were required for the work it is now immune under Planning Law.

It is an interesting point as to whether 20 years breach of a leasehold covenant prevents enforcement by the landlord. The 20 year rule is the case for freeholds but I wouldn't be sure about the leasehold point and would have to look it up.

However in this case you can only really prove 16 years (by getting the sellers to do a statutory declaration saying it was there when they bought). It may be possible to get a leasehold covenant indemnity policy - these tend to be more expensive and difficult to get than freehold ones, but OP's solicitor should be able to advise on that.