Indemnity insurance policy

NicNicP

The house we are buying had an extension built in 1996 that had no planning consent, building regulation approvals or restrictive covenant consents for the work so our solicitor says it will be necessary for us to effect an indemnity insurance policy. Can anyone explain more about this to me please? Do I need to do this with the solicitor or by myself and will there be a substantial charge for this?

Dan-Dan

Ignoring the restrictive covenants as only you know what they are....it seems your solicitor is just using an indemnity to incur you some extra costs, councils can take no action after such a long period of time, and seeing as its stood for 20 years your not likely to have it fall down around your ears

Are you using a conveyor belt line conveyancing outfit?

andrewmp

IIRC, similar in my house purchase but my solicitor made the vendor pay.

dc197

Returning to the covenant.
The title may have a restriction forcing you to obtain permission for an extension from someone. Usually the original developer, previous owner, or local development authority. This is in addition to planning permission and would apply even for permitted development.
If the person who put the covenant in place no longer exists or would no longer benefit from its existence, the covenant may be worthless (i.e. breakable without worry).
The indemnity will not make the breach of this covenant right, it will insure you from penalty if the benefactor chases you. It will be voided if you report the breach tot he benefactor.
I was told by my sol that breaches are unenforcable after 20 years. So this 1996 extension is nothing to worry about.
(And in the case where only 19 years had passed, if there has been no trouble so far, it's unlikely some will befall you)

NicNicP

I've spoken with our solicitor who has said they ask the vendor to pay for this. All being well they'll accept.

dc197

NicNicP wrote: »

I've spoken with our solicitor who has said they ask the vendor to pay for this. All being well they'll accept.

Hopefully they will accept.
Equally they may say: "I've never needed insurance, and I won't benefit from this new insurance, so I won't pay".

bigfreddiel

Indemnity policies don't cost much, so it hardly matters who pays

NicNicP

It will be £240. While we wouldn't pull out of the sale if they refused to pay, it would certainly be better for us financially if they agreed to foot the cost. Also it wasn't me who failed to obtain the planning permission so why should we page for their oversight?

Dan-Dan

NicNicP wrote: »

It will be £240. While we wouldn't pull out of the sale if they refused to pay, it would certainly be better for us financially if they agreed to foot the cost. Also it wasn't me who failed to obtain the planning permission so why should we page for their oversight?

because your the one who wants the protection it offers?

Hoploz

If it has no building regs certificate you must satisfy yourself it is structurally sound. As its been up that long I'd think anything major would be evident now such as cracks or bowing walls. Fire safety etc all included, although any older house would not meet modern regs anyway.

What covenant has been breached? The seller should tell you.

Bear in mind your lender may require these pieces of paper, even if you don't see the point. In other words, if your seller refuses to pay, or go halves, you may still need to buy it yourself. And of course on top of the cost of the policies will be legal fees for your solicitors to read through them. Kerr-ching.