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Indemnity Policy....Kindly advise us.
edward_scissorhands
Posts: 9 Forumite
Dear all,
We are First Time Buyers and our Completion date is on the 10th June 2011. We paid £250,000 for the house which we feel was the right price. The person who owned the house prior to the current owner built an extension (kitchen, bathroom & conservatory) most likely in the year 2004-2005. The current owner doesn’t have any Planning Permission or any documents regarding Building Regulations. Our Solicitors have asked the vendor to provide ‘Indemnity Insurance Policy’ to safeguard us in case the council does anything. The vendor has agreed to do it.
We do like the extension, & we feel that it’s tastefully done. The survey (Home Buyers Report) showed that it was structurally sound & no problems were reported. The valuation was £250,000. The survey didn’t identify any problems with the house, except for superficial things like painting.
Our solicitor did mention to us that they do come across similar situations and as long as the indemnity policy is set in place there wouldn’t be any problem. I know that the indemnity policy doesn’t cover for any damage to the extension. We have also got a home insurance quote from our mortgage provider.
I do feel stressed about the fact that we are purchasing a property (which we like very much) which doesn’t have any Planning Permission & there might be difficulties in selling the house if the need arises.
Kindly advise us, whether we are doing the right thing.
Sincerely,
E.
We are First Time Buyers and our Completion date is on the 10th June 2011. We paid £250,000 for the house which we feel was the right price. The person who owned the house prior to the current owner built an extension (kitchen, bathroom & conservatory) most likely in the year 2004-2005. The current owner doesn’t have any Planning Permission or any documents regarding Building Regulations. Our Solicitors have asked the vendor to provide ‘Indemnity Insurance Policy’ to safeguard us in case the council does anything. The vendor has agreed to do it.
We do like the extension, & we feel that it’s tastefully done. The survey (Home Buyers Report) showed that it was structurally sound & no problems were reported. The valuation was £250,000. The survey didn’t identify any problems with the house, except for superficial things like painting.
Our solicitor did mention to us that they do come across similar situations and as long as the indemnity policy is set in place there wouldn’t be any problem. I know that the indemnity policy doesn’t cover for any damage to the extension. We have also got a home insurance quote from our mortgage provider.
I do feel stressed about the fact that we are purchasing a property (which we like very much) which doesn’t have any Planning Permission & there might be difficulties in selling the house if the need arises.
Kindly advise us, whether we are doing the right thing.
Sincerely,
E.
0
Comments
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Pay attention to your solicitor. The extension may not have needed Planning Permission but would have needed to conform to the Building Regs at the time it was built. If it wasn't that's where the Indemnity Policy comes in.0
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Pay attention to your solicitor. The extension may not have needed Planning Permission but would have needed to conform to the Building Regs at the time it was built. If it wasn't that's where the Indemnity Policy comes in.
Agreed,and as time goes on the chances of a problem get less and less. Council would look stupid taking enforcement action so you only have to be concerned about :
1.possibility of substandard construction, but your surveyor was happy with it and
2.a small number of obsessively neurotic buyers in the future.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0
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