Help Indemnity policy

papacatta

Hi I need some advice please

WE are close to completing to buy a house and our solicitor has contacted us regarding two issues.

1 no building regs for a conservatory which was built 12 years ago which has central heating.

and 2 no building regs for chinney breast removal(dont know how long ago that was done)estimate last 5 years though.

The surveyer who did our valuation report had written that the chimney removal work looked to be a high standard and that the conservatory was impressive and an attraction of the house.

Our solicitor said that the sellers are offering us an indemnity policy for both the conservatory and the chimney breast removal and also a breach of restrictive covenant policy because of the work.

As first time buyers we dont know what to do next,we are trying to get the sellers to arrange a surveyer to view the chimney work in detail but if we go ahead with the purchase(we like the house),we think this problem will keep rearing up when we try to sell it.

Are these types of things normal in present house buying or should we cut our loses and start all over again.

All advice welcome please

seabright

This is normal. If you are buying with a mortgage your lenders will insist on these policies, even if you would choose not to have them.

Lots of puchases need indemnity policies to cover various problems that either can't be solved, would take ages to solve or where it's not not cost effective to try and solve the problem.

Lack of building regs and restrictive covenant policies are the most common type, so don't worry about it. They are one-off premiums, so once they're bought, that's it, you don't have to pay again. Plus, it looks like your sellers have agreed to pay in this instance, from the way you write.

I have a Restrictive Covenant policy in place on my own house, if that makes you feel any more reassured!

poppysarah

If the surveyor thinks it has been done properly - (ie: no chimney stack left unsupported) then it's not that much of a worry.

motherofstudents

yes, don't worry it is normal so if you like the house go ahead. We have had indemnity policies on several of the houses we have bought over the years with no problems at all. Enjoy your new home.

papacatta

thanks for all your replies,much appreciated:j

This is what most of our friends have said.

Dr_Eye

I am about to exchange soon (hopefully) and I have paid out for two policies. The first was for a window put in in 2005 which isn't safety glass (but is far superior to the one it replaced!). The second for the fact the corgi engineer failed to tick a box RE electrics on the certificate for a new boiler. All the work was of a very good standard it's just we didnt have the right certificate to prove it for the purpose of building regs.

I could have chased every man and his dog for the right certificate but paying for a policy was the last stressful route.

The solicitor explained it all and confirmed these type of policies are extremely common.

Don't worry.

Dave

timmyt

papacatta wrote: »

Hi I need some advice please

WE are close to completing to buy a house and our solicitor has contacted us regarding two issues.

1 no building regs for a conservatory which was built 12 years ago which has central heating. totally irrelevant after all this time, and the lawyer is not using his experience to dismiss it...I am assuming he is not a solicitor

and 2 no building regs for chinney breast removal(dont know how long ago that was done)estimate last 5 years though. again irrelevant if surveyor says no danger to health and safety then again irrelevant

The surveyer who did our valuation report had written that the chimney removal work looked to be a high standard and that the conservatory was impressive and an attraction of the house. bingo

Our solicitor said that the sellers are offering us an indemnity policy for both the conservatory and the chimney breast removal and also a breach of restrictive covenant policy because of the work. oh cool, double wammy, take it, though the BR policy only compensates you for expense should council take action...which they clearly wont. The RC policy is probably for the conservatory (as no covenant would stop a chimney breast removal) so again take it, but I would use my experince and say there is no risk of challenge and I would say the same to your Lender

As first time buyers we dont know what to do next,we are trying to get the sellers to arrange a surveyer to view the chimney work in detail but if we go ahead with the purchase(we like the house),we think this problem will keep rearing up when we try to sell it. no it won't not with BR policy

Are these types of things normal in present house buying or should we cut our loses and start all over again. what, totally trivial, i see them all the time as a conveyancing solicitor

All advice welcome please

see in red above

timmyt

Dr_Eye wrote: »

I am about to exchange soon (hopefully) and I have paid out for two policies. The first was for a window put in in 2005 which isn't safety glass the insurer must have been laughing at you and the lawyer who asked for it. OK should have had FENSA but its only glass!!!!!!!!!!!!!!!!(but is far superior to the one it replaced!). The second for the fact the corgi engineer failed to tick a box RE electrics on the certificate for a new boiler. All the work was of a very good standard it's just we didnt have the right certificate to prove it for the purpose of building regs.....a policy is for putting it right if challenged. it does not make the works magically sound, so buyer was clearly not concerned with safty, so I would have said get lost....but cheap enough to get a policy for £30 like you did for both issues

I could have chased every man and his dog for the right certificate but paying for a policy was the last stressful route.

The solicitor explained it all and confirmed these type of policies are extremely common. indeed they are

Don't worry.

Dave

such policies get a deal through but they also destroy the lawyers discretion when once upon a time they would have taken an educated view on the need for such policies at all and just let the deal go through