Bulding Regulations Indemnity Policy

JoeShmoe_2

I wonder if anyone can advise us

We are selling a house which had some work done over 15 years ago to knock down a partition wall between the 2 reception rooms. We dont have the plans or any form of regulation certificate (we believe it was never put through the council)

Ouur buyers solicitor is now saying that unless we get building regs retrospectively the sale cannot proceed. However without the plans we cant get these regs (plus the hassle of cost and opening up the works is something we would rather avoid)

To be fair the buyers seem more concerned about the issue they may when they come to resell than any structural issue with the work

I understand that the seller can offer to take out a indeminty policy which can be sorted out between the solicitors. Is this a fair trade off in this case? Is this common standard procedure where building regulations cannot be obtained? Should the buyer now be happy that he now has a recousre to get over this issue when he comes to resell?

Many thanks in advance for you help

silvercar

Your confusing planning permission and building regs approval. You don't need planning permission to get building regs approval.

You can call the council and ask them to inspect and issue a building regs certificate.

your buyers may be concerned about problems selling (Though in practice, they would not be asked to undo work more than 4 years old just because it didn't have planning permission, unless you live in a conservation area or its a listed building).

They may be concerned about the quality of the work. Is there a risk that the upper floor is not supported? They should get a surveyor/ or a structeral engineer to look at it if they are worried. Did they have a structural survey?

An indemnity policy may be a good compromise. it will cover them for the loss in value of the house not having the building cert. Not really worth anything other than peace of mind to a future buyer. It won't cover the cost of putting right shoddy work, should this be required.

JoeShmoe_2

Tks for the quick response

The work is fine. Indeed a previous buyer (where the chain fell through) had a full structural survey carried out and there were no issues. The wall is not load bearing and is timberframe with plasterboard. Where the archway is on the ground floor they have simply added a steel beam, so standard stud timber partition. My father in law is also a registed builder and has said the work is fine. Its also over 15 years old and there are no signs of cracks, bowing etc

The problem here is the buyers solicitor seems to have a real bee in her bonnet about these regs. Ive been advsied by my solicitor that a) you cant obtain the regs without plans and b) the process will be expensive, very time consuming and require work to the property.

H'e advised us that asking the council for the regs isnt an option so the only recourse is the indeminty policy. He also states that their solictor can only advise, whether or not to take the policy is purely a decision for the client. So it looks like they will have to make a cold hard choice or its back on the market

BobProperty

I recall talking to a structural engineer a few years back and he was off to do the calculation for the building regs approval in retrospect for a "through lounge" which had been done years earlier. The building reg (BR) approval was being insisted on by either the purchaser or lender. The lender part might be important. I'm getting the impression that this is more commonplace now, and where work has obviously been done, the necessary BR approval is being required. You can understand that lenders and insurers are wanting to cover themselves against any future problems (and reduction in value if something goes wrong). This will also be one advantage of HIPs as the BR approval will be expected to be in the pack.
I don't see why you can't get retrospective permission, but I think your solicitor is confusing plans as in planning permission with plans as in diagram plus calculations for building regulations.

JoeShmoe_2

No I mean plans like 1000:1 scale drawings of the work that was carried out. Builders plans if you like

Update: This morning my solictior has spoekn to theirs about this indemnity policy, ready for a battle, and she agreed straightaway and said she would speak to her client. It appears the buyer has been making claims through my estate agent that appear to be false

Which leads me to believe the buyer is trying to claim his solcitor wont proceed unless there's regs when really this is him trying to force us to get the regs done. If that is the case then that strengthens my resolve even more. He takes the policy else we have a fallthrough

Doozergirl

JoeShmoe wrote:

Which leads me to believe the buyer is trying to claim his solcitor wont proceed unless there's regs when really this is him trying to force us to get the regs done. If that is the case then that strengthens my resolve even more. He takes the policy else we have a fallthrough

It's more likely that your buyer has no clue of what's involved and has gotten a bee in their bonnet. I've seen it on this board a lot.

Fingers crossed they'll go with the indemnity policy - if their solicitor explains it properly, I doubt there'll be a problem.

Good Luck!

clutton_2

i agree absolutely with doozergirl - i would suggest that the buyers gets an indemnity policy, BUT, if they wont, and you are in a chain, and getting stressed, a couple of hundred quid or less to buy a policy will progress the sale (annoying as that is), - don't get yourself unnecessarily stressed - moving is stressful enough as it is.

£200 in the grand scheme of things is small beer for a fast and smoother sale, dontcha think ?

JoeShmoe_2

Perhaps you ought to tell my buyer that. I agree wholheartedly

Mishy

We have just viewed a house which has had a loft conversion and a kitchen extension done to the building. We asked the seller about the papers for the work done. She said that they don't have the papers but they do have an indeminty policy.

All well and good but if someone is willing to do the work without planning permission then what else have they done to the house. It is okay saying yes you can get covered with this indeminty policy but what about when (if we bought the house) we decide to sell it. Where do we stand?

JoeShmoe I'm sorry but maybe your buyers need to be sure that they are doing the right thing with buying your house.

JoeShmoe_2

Well we have now sold the house. The buyers accpeted the policy on advice from their solictor. Remember we didnt do the work so we didnt have the papers. Its up to you but this whole indemnity policy business exists to protect you if and when you come to sell the house

Mishy

Yes but if we decide to do any work on the house and seek planning permission then that indeminty policy will expire therefore leaving us in limbo. Do you know what I mean?