No building regs and no solution

Halle71

I have already posted about this but the situation has now got far worse.

https://forums.moneysavingexpert.com/discussion/4954824

We purchased a house in 2009 and now we are selling it we have discovered that there was no building regs sign off for an extension built by the vendors in 2006.

Originally building regs said they would sign it off if we got an electrical certificate but they since backtracked and today we received confirmation that they cannot do this and we don't know where to go from here. They will give us a letter of comfort but there is no guarantee this will satisfy our buyer or their lender.
Our first buyer dropped out for a different reason and we accepted a new offer a week ago thinking it would be sorted.

We suspect the sale will fall through once they know but we are waiting for our solicitor to advise us how to play it.

Our original conveyancer has gone into administration but the legal ombudsman is investigating our case against them because they did not bring the lack of building regs to our attention (or our lenders's).

Although we don't hold any paperwork and we do not yet have any conclusion from the ombudsman we do have information that points to the vendor lying because their solicitor told ours that no electrical installation had been done post Jan 2005. Obviously it had been because they only moved in 2006 and immediately started the extension (the application is online). I also suspect they must have lied on the section asking about extensions/building regs because I would have noticed on the property information form if they had been truthful. If this is the case could we sue them?

It's £650k house that may be impossible to sell :-(
If we lose our seller will our only solution be to rebuild?

It all seems so unfair right now.

anselld

Don't see the point in starting a new thread, to be honest.
You just need to be up front with buyers and find one who isn't put off by the lack of Council box-ticking and accepts the state of build for what it is.

pinkteapot

If the seller lied on the Property Information Form then yes, you can sue them. The amount you can go for is the difference in value between what the house would have been worth with building regs, and what it's worth without. This may be hard to ascertain. You need to read the Property Information Form, see if they lied, and then speak to a solicitor if they did.

As above, you need to be upfront about the building regs situation with your EA and with prospective buyers. You'll find someone who's not worried about it. It'll cost you a bit on your price, but likely be cheaper than knocking down and rebuilding the extension.

davidmcn

Halle71 wrote: »

They will give us a letter of comfort but there is no guarantee this will satisfy our buyer or their lender.

A letter of comfort is usually acceptable. Who has told you that it won't be? After all, the risk you want to protect yourself against is building control taking enforcement action. A letter of comfort is their confirmation that they don't intend to take enforcement action.

Halle71

davidmcn wrote: »

A letter of comfort is usually acceptable. Who has told you that it won't be? After all, the risk you want to protect yourself against is building control taking enforcement action. A letter of comfort is their confirmation that they don't intend to take enforcement action.

Building regs can't do anything after 4 years anyway.

So, as a buyer, I would be more concerned about any problems with the build. As the council have pointed out to me, they do not have evidence of the following:

1) Foundation depth and width, including protection to any sewersthat may have been present

2) Correct positioning of damp proof course and lapping

3) Whether sub floor ventilation has been incorporated andmaintained

4) Wall construction, closing of reveals, bearing and suitabilityof lintels & insulation

5) Floor construction, insulation & resistance to moisture

6) Roof construction, resistance to uplift and lateral restraint ofside walls & insulation

Halle71

anselld wrote: »

Don't see the point in starting a new thread, to be honest.
You just need to be up front with buyers and find one who isn't put off by the lack of Council box-ticking and accepts the state of build for what it is.

We will be up front as soon as I have spoken to our solicitor- as mentioned we only found out yesterday, the day we returned from holidays.

The problem is, we already have a buyer and if they don't accept it we are screwed. We had the offer on the house we are buying accepted in March when we accepted an offer from our first buyer. Now on our second buyer, we won't have the time to remarket (especially with a more limited selection of buyers) and keep our purchase. In that case we will come off the market as we only want that house.

We then won't move for a few years because of our school situation so we will have time to sort out the problem.
hence I am looking into what 'compensation' we can claim.

pinkteapot

As above, dig out the PIF, see if the seller lied, and consult a solicitor if so. From that route I believe you can only claim the difference in value of the house (what it would be worth with regs and what it's worth without).

You can also keep pursuing your case against your solicitor. Not sure what you've been told you can claim through that route?

davidmcn

Halle71 wrote: »

As the council have pointed out to me, they do not have evidence of the following:

1)Foundation depth and width, including protection to any sewersthat may have been present

2)Correct positioning of damp proof course and lapping

3)Whether sub floor ventilation has been incorporated andmaintained

4)Wall construction, closing of reveals, bearing and suitabilityof lintels & insulation

5)Floor construction, insulation & resistance to moisture

6)Roof construction, resistance to uplift and lateral restraint ofside walls & insulation

The council may need evidence of all that in order to sign off, but a buyer relies on their survey (after all, I presume you can't exhibit evidence of all those things for the remainder of your house?).

Halle71

pinkteapot wrote: »

As above, dig out the PIF, see if the seller lied, and consult a solicitor if so. From that route I believe you can only claim the difference in value of the house (what it would be worth with regs and what it's worth without).

You can also keep pursuing your case against your solicitor. Not sure what you've been told you can claim through that route?

I spoke to our investigator at the legal ombudsman today and they don't yet have our files from the CLC but, if they do find the solicitor was negligent, we will be able to claim against their insurer. I was told that they will try and aim to get us back to the same position as we would have been had building regs been in place. I guess this is compensation to the value of the reduction in house price value or rebuild of the extension which we have been advised is about the same.

Unfortunately I can't find a copy of the PIF so I am hoping it will be in our files.

Halle71

davidmcn wrote: »

The council may need evidence of all that in order to sign off, but a buyer relies on their survey (after all, I presume you can't exhibit evidence of all those things for the remainder of your house?).

Believe me, we're praying they accept it.
But searching online, opinion is mixed.
And I would have a problem with it if I was in their position.
And the ultimate decison will be their lender's.

Halle71

I always like it when I see updates on a problem so I'm popping back with my own.

We did eventually sell house in August after the council wrote a letter of comfort (saying no action would be taken) and the buyers had a satisfactory building survey.

As we had been in the process of investigating why we were not aware there was no building regs approval when we purchased (in case we were unable to sell), we carried on with this process.

Our case went straight to the Legal Ombudsman as the solicitors in question had gone into administration and they concluded that the service we recieved from our conveyancer was negligant. They found two letters in particular - one early on in the process telling us we needed to get a building regs certificate and one a couple of months down the line saying they had seen the certificate. But it doesn't exist......

They have recommended we receive modest compensation for stress as well as for our outgoings (electrical certificate and letter of comfort fee). I guess this compensation would have been more substantial had we not been able to sell and needed a certificate of regularisation.

So all's well ends well but it was a hairly few months.