Would you buy a house without building regs?

pinkpiglit

Our current flat, which we've sold (completion next week) has a loft conversion without building regs or planning permission. It was done in the 90s by the then owners.

When we bought it our solicitor didn't seem too concerned and we were provided with an indemnity policy, which I now know really isn't even worth the paper it's written on.

When we came to sell, our buyer's solicitor seemed to think our building was listed (it isn't) and and that this required a new listed building indemnity. In the end they contacted the council, much to my horror, but thankfully the council confirmed the building is not listed (I have no idea whether or not the solicitor advised the council of the reason for their inquiry) and the sale then proceeded without any further problems.

However, even though the sale has gone through, I wouldn't buy a place again that lacked building regs. We're going to be undertaking some minor work at our next place and will make sure that all permissions/regulations are complied with. It is just too much of a headache otherwise.

dominoman

tigsly wrote: »

i'd have said the fact you've contacted teh council - now means they 'know' so no indemnity can be bought

therefore the only options for the vendor - is retrospective planning or dropping the price- to allow you to rebuild?

Why can't an indemnity be bought if the council has been contacted?

Thrugelmir

DRP wrote: »

might the inability to get indemnity insurance jeopardise the mortgage application?

mortgage companies seem to like/require these insurance policies.

An indemnity doesn't stop the property falling down or catching fire .

Linton

dominoman wrote: »

Why can't an indemnity be bought if the council has been contacted?

Normally indemnity insurance is cheap because the event is considered extremely unlikely to happen, even though it may be expensive if it did. If the council know they are very much more likely to do something about it than if they didnt.

tigsly

the indemnity - covers 'putting the work right if the council come to check'..

it doesn't verify the work is safe - or to regs..

An indemnity is working on the likelyhood of the council checking (i'd have said not likely at all.. ) so if you ring the council and say 'property X do they have building control for XY and Z .. they are alerted and might come and check on XYZ.. it makes it far more likely they will come..

DRP

Thrugelmir wrote: »

An indemnity doesn't stop the property falling down or catching fire .

that is correct.

djlevackio

DRP wrote: »

that is correct.

And this is the crux of the matter, and why we have walked away! I'm basically being ask to go on the word of a builder who I have no idea who he is, and how he's determined the structure is sound. It certainly doesn't have any architect plans or structural engineer calculations that I've seen!

Indemnity insurance is a joke, but unfortunately is used by agents and vendors as a carrot to wave to indicate everything's just fine.

CH27

silvercar wrote: »

In this situation a sensible seller would themselves instruct a structural engineer to survey the works and provide written report that they can show to potential buyers. Any reluctance to do so suggests there is something to hide.

That's my feeling too.

djlevackio

tigsly wrote: »

the indemnity - covers 'putting the work right if the council come to check'..

My understanding is that it actually only covers the fine. Which I'd expect is such an unlikely event, council turn up, see the work and fine you without giving you a chance to put it right.

djlevackio

anselld wrote: »

Good luck with that!

So, just wanted to let you know after we pulled out and lodged a formal complaint the agents have today agreed they were in the wrong and are reimbursing our £975 costs in full!

The Property Ombudsman code of conduct is strict now, REALLY strict, and the more people like me challenge malpractice like this the better things should get for buyers.