Buying house with no building control approval for extension

EmmaL

Hi - I've posted about this on someone else's thread about a similar issue but thought I'd create my own thread.

I have just discovered that a house I'm buying (Victorian terrace) has no planning or building control approval for rear extension, removal of wall between living and dining room etc. The work was done long enough ago that planning permission isn't a concern, but building control is.

My solicitor said I should get an indemnity policy to protect against the council condemning the work or asking for work to be done, but also double check with surveyor that he was not concerned about these changes structurally. While the survey says there are no obvious problems, I have now asked the surveyor's advice and he has said he can't recommend proceeding with purchase without retrospective building regulation approval. Aargh!

We are days away from exchanging and there have already been numerous delays! I would obviously like to get some reassurance that this work was done well, but the rest of the house was built in 1900 and I have no guarantees and have to go by the survey alone? It makes no sense to me. On that logic, no-one would buy anything built before building regs came into force.

What worries me most is that it may come up if and when I try to sell the property myself (I'm planning for this to be my forever home, but you never know) when I could be saddled with getting retrospective approval and putting right any issues. So retrospective approval makes sense, however this could take 8 weeks (my solicitor says) and possibly raise all sorts of issues that need to be rectified! Aargh!

If there were any major issues I'm pretty sure the sellers won't negotiate with me on price as I have already tried to negotiate re some fairly minor damp work that needs attention.

Any advice very very welcome!

Lord_Baltimore

I'm afraid the circumstances have left me as befuddled as you are! It's a risk and it's your money. You have to decide. Was the extension built over drains for example? You don't mention that.

Historical building work is probably ok as the house is still standing but...hmm, I dunno...can you live with so much uncertainty?

Easy to say but buy a different house and your mind is at rest. Sorry for waffle

booksurr

you are probably correct that lack of planning permission may no longer be an issue if several years have elasped since the work was done

however, I don't think you really understand what the indemnity policy covers - if the council subsequently decide that building regs are required and take action against you, the indemnity policy does NOT cover the cost of any works they may require. The policy simply covers the legal costs associated with responding to the council correspondence. Indemnity policies are possibly the next great mis-selling saga waiting to happen

as for your decision - the fact it was built in 1900 property is largely irrelevant, the extension has been picked up on because it is not part of the original fabric of the house. You don't know when it was actually built but presumably it was "relatively" recently and therefore you owe it to yourself to make sure it was done properly because, as you know, when you sell your buyer will surely have the same worries.

retrospectibe building control approval is likjely to be very awkward since by defintion it may mean having to strip back and expose things which are now covered up to check they were done correctly eg: remove plaster to see the size and type of RSJ spanning the gap. Looking at what DPM is under the floor etc - your seller is likely to be furious and refuse to pay or allow that so you may have to take a chnace and go without and foot the bill and disruption for that inspection yourself once you are the owner and before your buyer kicks up the same fuss

EmmaL

Thank you for your responses Lord Baltimore and booksurr. My solicitor has today gone back to the seller's solicitor to tell them that my surveyor has suggested I not buy the property without the appropriate assurances regarding the alterations to see if that spurs them into suddnely finding any other documentation they haven't shared with us yet. We don't even have anything to put a date on when these alterations were made.

He has also asked them to cover an indemnity policy. But you're right booksurr, I thought indemnity covered the cost of any work the council could require as well as the legal stuff. How pointless! It's really unfair that either myself or the people currently selling the house are left liable for potential shortcomings in the work done years and years ago. My solicitor seems to think the extension could have been done pre 1974 according to plans he's seen!

My surveyor also said that an inspection by buildings control would mean opening up the building - chipping off plaster to see the support given where walls have been removed - and possibly digging holes to check the foundations. What a HEADACHE!!!

My solicitor seems really unphased by it all and I think he thinks I'm making an unnecessary fuss. I also spoke to the estate agent who of course also downplayed it as 'just a detail'. They aren't the ones who could potentially be left with a massive money pit on their hands though are they!?!?!

Thanks again for your input.

tired_dad

I'm not an expert but have bought and sold a few.

This is my understanding

1. Without BC, the council will not have signed off the extension.
2. Your solicitor is not your enemy but helping protect your interests.
3. If you are borrowing money with a mortgage you solicitor will be acting for the mortgage company as well.
4. I always thought that without all the paperwork you will find it difficult to borrow on the property.
5. Don't the sellers have to get retrospective bc approval at their cost before they can sell it on to a normal person (one who needs a mortgage).

jbainbridge

Keep in mind you may have similar problems when you come to sell too!

When we bought our last house the extension was over 4 years old and didn't have BR sign off. However the council reassured us that there was little they could do and our surveyor thought it was well built. When we sold an indemnity was required - but there was no real problem.

Hoploz

So it was built before 1974, and is still standing.

Were building regs even invented yet?!?

Get the indemnity and get in. There is no way you are going to get the vendor to allow some random person who might or might not buy their house to open up building work done years ago.

The surveyor is not able to say, "well its probably ok, go ahead and buy it" because that is not how they work. They have to cover their behinds to the nth degree. He has already said it is structurally sound as far as he can tell.

Telling the vendor you will not proceed without retrospective inspection is only advisable if you genuinely plan to pull out. It is very unlikely they had paperwork and just didn't bother telling you the first time they were asked.

Your solicitor can search the councils databases and tell whether BR was applied for.

Some local authorities even have publicly available searches on the Internet, searchable by address. Do you know when the extension was done? Have you searched online for planning applications for the house? Does it pre-date building regulations? Have you looked into it yourself in any way?

BUT do not ask the council directly whether the house has permission as this would invalidate any indemnity policy you or a future buyer may take out.

Devonjem

I have an indemnity policy to cover lack of planning permission and building consent. It indemnifies me and my successors against a few things (i) damages/compensation awarded against me relating to the lack of permissions, (ii) cost of altering/demolishing the building to comply with an order, (iii) diminution in value of house if an order prohibits or restricts my use, (iv) all costs charges expenses in connection with any legal action relating to the lack of permissions.

This policy was obtained in 2006.

DRP

Hoploz wrote: »

So it was built before 1974, and is still standing.

Were building regs even invented yet?!?

Get the indemnity and get in. There is no way you are going to get the vendor to allow some random person who might or might not buy their house to open up building work done years ago.

The surveyor is not able to say, "well its probably ok, go ahead and buy it" because that is not how they work. They have to cover their behinds to the nth degree. He has already said it is structurally sound as far as he can tell.

Telling the vendor you will not proceed without retrospective inspection is only advisable if you genuinely plan to pull out. It is very unlikely they had paperwork and just didn't bother telling you the first time they were asked.

Your solicitor can search the councils databases and tell whether BR was applied for.

Some local authorities even have publicly available searches on the Internet, searchable by address. Do you know when the extension was done? Have you searched online for planning applications for the house? Does it pre-date building regulations? Have you looked into it yourself in any way?

BUT do not ask the council directly whether the house has permission as this would invalidate any indemnity policy you or a future buyer may take out.

Our vendors got the loft extension regularised by BC, prior to us exchanging contracts. We insisted on it , even though the solicitor would have allowed thing s to go ahead with just an indemnity policy.

It cost them about 2 grand and involved cutting holes in flooring, installing wired fire alarms and roof vents. They were desperate to sell, so it does depend on the circumstances of the OP's buyer as to whether it is worth pushing for an invasive inspection.

rosie383

EmmaL what happened in the end? Your post was a month ago and you said you were days away from exchanging. Did you go ahead?

thestens

We got the seller to get retrospective Bc approval before we would go ahead. I didn't want an indemnity policy, which won't guarantee the work was done properly. You need something you can give to buyers when you want to sell.