First House - a selling knightmare!

Guilefox

Here is a lesson to anyone selling a house! And also a question! On the form you get when selling the house that lists any work done to it, don't put down anything you don't have to! (so I have brought this on myself) I was actually trying to be honest and show the buyer the added value put on the property.

I rather stupidly put down all the work the previous owner (who was also my sister) had done to the place. I bought it off my sister in 2007. The work she had carried out (in 2003) did not have landlord consent or building regs the work (not the windows) was done by my father who is a self-build type! (has built the house we grew up in but is not technically a builder)

I also chose a very cheap conveyancing solicitors firm where the solicitor only sees all the documents almost on the day of exchange. He has turned around and said that quite understandably that I need landlord permission (in this case local council) before we can proceed.

This is bad for my family (but worse for buyer who by middle of August is homeless and paid for searches and survey!) I have somewhere else to rent. (not onward chain).

In this case the work carried out consists of double glazing installed 6 years ago by Coldseal UK (Fensa approved) and a WC room converted to a En-suite bathroom. The work was carried out by previous owner (my sister). An architect looked at the building work (where part of a wall was removed and a builder checked the work) at time she didnt bother with the landlord approval and it was not poor workmanship (obviously the lease says we need permission in writing from landlord for these changes. All flats in the block have their property converted to double glazing (from single glazing in same style) we actually opted out of the council scheme to pick a better quality of window with trickle vents and pilkington K glass. And she says she spoke to council at time who said it was ok to go private but we have nothing in writing. Many other properties have also had conversion like this to ensuite.

The council have not been informed yet. And solicitor suggested idemnity to cover JUST the building regs but are adamant they want landlord consent on the other work. I.E windows and the extra bathroom added.

I dont want to involve council if I can afford it, it might open a can of worms and take far too long so I would lose the sale. Also trying to get retrospective approval from landlord now would destroy the building regs indemnity.

The works is good and has been for years. The buyer is still keen. So it really just the solicitor who is trying to protect the lender.

Is there no indemnity cover that can cover all of this and let us proceed?

please! :A

Guilefox

UPDATE: I thought I had worked out a solution today. Which was to offer £5k in a retention fund with the solicitor for landlord consent (in case there are any problems this will pay to rectify) and take out indemniity insurance on the building regs.

However the buyers solicitor rejected this.

Found out real situation today, the buyer dad is apparently saying he wants 40k retention fund (a joke surely) or for me to get the written approvals from the council within 2 weeks!

The son still want to buy but is being advised by his dad and solicitor against the offer which I think is fair. I know his dad does not like the property at all but I guess he does have his sons best interests at heart.

What are my chances of me getting landlord consent in 2 weeks?!

Guilefox

UPDATE: The seller has called me today to ask if he can move into the maisonette, ie short term rent. (Whilst I sort out building regs and get landlord consent)

Whilst this sounds like a possible solution. My worry is that this will be like a try before you buy senario.

There is a conflict of interest because he might decide he doesnt like it and use the time living there to buy somewhere else!

Not sure what to do now at all.

Maybe I could ask for a £1000 deposit if I rent him the flat (deductable against the final sale if/once it completes). If the sale falls through because of landlord consent he would not lose it. But if the sale fell through for any other reason then he would forfeit this amount. I think this is fair because if I have to wait any longer I will have to take out a re-mortgage (as it runs out in 3 weeks)...then will be stuck with changing mortgage again when I sell and buy the house and possible early repayment charges. I'm self-employed and its hard enough getting a mortgage in the first place!

jw2003

What???

Here consent can be obtained retrospectively and costs under £200, building reg fees similar

Our double glazing firm could sign off on building regs independently and provide a certificate - could yours? Maybe you could check with your provider and see if they still have a record of it

No offence but it sounds like a bit of a mountain out of a molehill situation. How long will it take to get building regs in? Have you called them yet?

jw2003

Found this on the planning portal:

The following types of project amount to 'Building Work':

The erection or extension of a building
An alteration project involving work which will temporarily or permanently affect the ongoing compliance of the building, service or fitting with the requirements relating to structure, fire, or access to and use of buildings
When installing replacement windows using a builder or window company not registered with the relevant Competent Person Schemes.
The installation or extension of a service or fitting which is controlled under the regulations
The insertion of insulation into a cavity wall
The underpinning of the foundations of a building
When you want to change the building's fundamental use

and:

and Bathrooms »

Planning Permission
A planning application for installing a kitchen or bathroom is generally not required unless it is part of a house extension.

However, if your property is a listed building you should consult the Local Planning Authority.

Building Regulations
Work to refit a kitchen or bathroom with new units and fittings does not generally require building regulations approval, although drainage or electrical works that form part of the refit may require approval under the building regulations.

Guilefox

Thanks jw2003, and well done for wading through all of that! I am pretty sure the lease states things like bathroom and windows cannot be altered without written consent. Also the double glazing company were Fensa approved ColdSeal UK (now gone bust).

UPDATE: Estate Agent called me yesterday to say the buyer is suggesting he rents until the plans are approved.

I have been getting some advice from the oracle that is Richard Webster and the architect (and family friend) who came to check the work we did and give it thumbs up 7 years ago. I need to check the lease to see if the landlord cannot withold consent if it is reasonable. The work has certainly added value (there is a flat either side which is like mine but without the work and both are on the market for less than mine has sold).

The main thing here is timescales (sure I could get the retrospective consents signed off).

Two reasons for this:
1) The buyer is homeless next week.
2) I will need to get a new mortgage within next 4 weeks or lose a discounted settlement offer (expires).

Therefore I have whittled this down to four options.

1) The buyer withdraws. House goes back on market. I take out a new mortgage until it sells (bummer but will try and avoid one with early repayment charge)

2) We exchange - I take out an indemnity policy for building regs. And an indemnity covenant insurance against the lack of landlord consent. Everything covered. Not sure where I can get such "indemnity covenant insurance". Well I cant my solicitor has to I believe and he is not very knowledgeable (so far told me its not possible!)

3) We exchange - I put £5k in a retention fund (held by solicitor) whilst buyer gets retrospective permissions... any problems he uses fund to rectify. So far he has refused saying he wants £40k retention. (this for a bathroom and upgrade of windows on a flat worth 185k!)

4) Buyer rents flat from date he is homeless - whilst I sort out the retrospective consents. (His latest suggestion). I have thought about this and to do this option I would expect us to exchange with a deposit 10% standard refundable if the property fails to gain the relevant consents.

I dont like 4) for many reasons...conflict of interest, I have sit in tenants if things go wrong, he could use it as a stop gap and go elsewhere. I have to turf out my sister who is currently staying there unnecessarily. Like a try before you buy!

I'm finding it hard to know what to do ....so stressful.

I think it may be time to call his bluff now and find out if he really wants it. The fact he is still interested suggests he does. And may well be looking to drop price suddenly last minute.

Been trying to think of his point of view..... he was about to buy a house/sign and found "something wrong with it" ..and so perhaps would expect a little deal.

I might have to bite the bullet and let this one go and get these retrospective consents sorted and threaten to put it back on market (even if I have to take out a very short term mortgage to do it).

Sure I will then see what hand he is really playing!

Guilefox

UPDATE: This just gets stranger and stranger!

I have rung up two insurers to ask if I could get covenant indemnity insurance on the lack of landlord consent. The answer? A resounding yes as many have advised me on this site. (depending on the situation obviously) and they wouldnt go into too much detail to a pleb like me.

So I rang the buyer. And he is a thoroughly nice chap and was happy if we took out indemnity on the building regs and landlords consent to complete sale!

So now both seller and buyer want the insurance (if we can get it).. and are asking our solicitors to sort it (they are both same firm but different branches) We both are not happy with out solicitors.

I rang mine after and was told they dont have a policy that covers it. Could I give him the name of one of the companie who said they would do it and he will try!

(I should be on commission!)

Guilefox

FINAL UPDATE: I HOPE!

Ok I have learnt some lessons here.

1) Get the regs the consents in first place
2) Maybe reconsider mentioning anything in first instance if work was carried out before you bought your property! (if you have carried work out yourself then be honest or you might be sued later).
3) Pay extra for a decent solicitor. I can recommend Richard Webster's firm.

I have taken out a comprehensive indemnity to cover everything today and it is under 200 pounds, the buyer is happy, I am happy and we look set to complete Friday! Fortunately I have people on this site to thank for advice which meant I could "educate" my solicitor and pass him a company who could resolve this. Maybe I should charge commission.