Can I contact Council for extension application when Indemnity Insurance is in place?

yaojeff

I am in a process to buy a property. My solicitor discovered some of the conditions in the planning permission was not complied, and the seller is happy to buy indemnity insurance to cover that.

However, my solicitor warns me that this insurance will stop me from any further development of the property that need Council approval, because my application to Council for further development will void this insurance policy. Is this true?

Thanks !

yaojeff

Any comments are very appreciated! Thank you!

kingstreet

Yes. IIRC anything you do which brings the property and its history to the attention of the council could make your indemnity null and void.

yaojeff

kingstreet wrote: »

Yes. IIRC anything you do which brings the property and its history to the attention of the council could make your indemnity null and void.

Thanks. But may I only apply Building Regulations Approval? The extension probably don't need Planning Permission, but I think the Building Regulations Approval still applies.

G_M

Errrr....

"anything you do which brings the property and its history to the attention of the council could make your indemnity null and void. "

sonastin

You've got to think about what the insurance is actually insuring against and what work has been/is going to be done to the property. If you are looking for the council's approval to make changes to the thing that wasn't approved in the first place, you could be inviting them to take enforcement action but equally it is in the council's interest to work with you to improve the dodgy building work not punish you for something you bought. And on the other hand, if you are applying for permission to work on another part of the house, is that likely to bring the council's attention to the fact that other work was done under the radar? Probably not, so as long as you are planning to work with the building inspector and do things by his book, there won't be any enforcement action and no consequence to the indemnity insurance being invalidated.

But then again, I'm definitely in the camp of "indemnity insurance isn't worth the paper its written on" so if you think it is of value, my opinion might not be of use!

wonderman

why not get the vendor to sort it out before you exchange. Either that or have an amount withheld from the purchase price to cover your risk. Once you have gone down the insurance route then the vendor if off the hook and it all rests on your shoulders to resolve. And I would not bank on the insurance company just paying up if I were you - they will find whatever reason they can why they will not pay.
This is the way all solicitors seem to approach conveyancing these days - any problem crops up - just get the vendor to pay for an insurance policy. But will it cover you?

yaojeff

sonastin wrote: »

You've got to think about what the insurance is actually insuring against and what work has been/is going to be done to the property. If you are looking for the council's approval to make changes to the thing that wasn't approved in the first place, you could be inviting them to take enforcement action but equally it is in the council's interest to work with you to improve the dodgy building work not punish you for something you bought. And on the other hand, if you are applying for permission to work on another part of the house, is that likely to bring the council's attention to the fact that other work was done under the radar? Probably not, so as long as you are planning to work with the building inspector and do things by his book, there won't be any enforcement action and no consequence to the indemnity insurance being invalidated.

But then again, I'm definitely in the camp of "indemnity insurance isn't worth the paper its written on" so if you think it is of value, my opinion might not be of use!

Thanks, sonastin, what you said makes sense to me. But according to kingstreet and G_M, it seems I cannot contact Council for any future work. Do I miss anything?

GDB2222

How long ago was the other work done? What sort of things weren't complied with?

The first question is relevant because after a while you can apply for a certificate of lawful construction (or something like that) which effectively gives you PP for what is actually there.

The second question is a practical one - how much would it cost to put it all right?

yaojeff

GDB2222 wrote: »

How long ago was the other work done? What sort of things weren't complied with?

The first question is relevant because after a while you can apply for a certificate of lawful construction (or something like that) which effectively gives you PP for what is actually there.

The second question is a practical one - how much would it cost to put it all right?

Work was done 10 years ago.

Conditions that not complied with are

1. Before any part of the development hereby permitted is first occupied boundary enclosures of a height and type to be approved in writing by or on behalf of the Local Planning Authority shall be erected in such positions along the boundaries of the site(s) as shall be agreed and shall be permanently maintained thereafter to the Authority’s satisfaction.

2. Details of a scheme of landscaping, which shall include the materials of paved areas and other hard surfaces, shall be submitted to and approved in writing by or on behalf of the Local Planning Authority before the commencement of the development hereby permitted. The approved scheme shall be implemented in the first planting season following the first occupation of the buildings or the substantial completion of the development, whichever is the sooner. Any trees or plants which within a period of 5 years from the substantial completion of the development die, are removed or become seriously damaged or diseased shall be replaced in the next planting season with others of similar size and species to those originally planted.


3. Details of a surface water drainage system (including storage facilities where necessary) shall be submitted to and approved in writing by or on behalf of the Local Planning Authority before any part of the development hereby permitted is commenced and the approved system shall be completed to the satisfaction of the Local Planning Authority before any part of the development hereby permitted is first occupied, and permanently maintained thereafter to the Authority’s satisfaction.

4. Details of a foul water drainage system shall be submitted to and approved in writing by or on behalf of the Local Planning Authority before any part of the development hereby permitted is commenced and the approved system shall be completed to the satisfaction of the Local Planning Authority before any part of the development hereby permitted is first occupied, and permanently maintained thereafter to the Authority’s satisfaction.

G_M

yaojeff wrote: »

Thanks, sonastin, what you said makes sense to me. But according to kingstreet and G_M, it seems I cannot contact Council for any future work. Do I miss anything?

My reply:

anything you do which brings the property and its history to the attention of the council could make your indemnity null and void.

was in answer to your question:

my solicitor warns me that this insurance will stop me from any further development of the property that need Council approval, because my application to Council for further development will void this insurance policy. Is this true?

It was not meant to assess the need for/value of the insurance.

Now was it meant to comment on applications you might make which were unrelated, and might not "brings the .... history to the attention of the council "

I simply stated that yes, if you bring to the council's attention the failure to obtain PP or Building Regs, then the insurer will not pay out.

I agree with Sonastin - these policies are of little use, and no substitute for doing works properly. But the fact remains

anything you do which brings the property and its history to the attention of the council could make your indemnity null and void.