Completion Certificate

simpleguy_blr

Hi,

Made an offer on a lovely house, the offer was accepted and then on the second visit the sellers mentioned to us that there is a slight problem as they do not have the completion certificate for a Single-storey rear extension and formation of shower/wc & study that was carried out about 10-11 years ago.

1. They did not require planning permission as it was below the percentage of floorspace that requires permission.
2. The building and regulations team was notified and were involved during the various stages, except for the completion (not sure why).
3. They have contacted the council, so I understand that you cannot take an indemnity insurance.
4. The council has sent an email stating that the scheme was written a while ago and also has confirmed that some site inspection took place.

The extension looks good, we had a home buyers survey carried out and are waiting for the report, what I heard back from the seller is that the surveyor said the house is in good condition. It's a 1930 build.

We are waiting to hear back from the mortgage lender as well:
My worry is:
Can this cause an issue in the mortgage process?
Can the missing completion certificate cause any problems if we decide to sell the house later?

Any advice / suggestions much appreciated.

Many thanks.

Hoploz

Yes this could be a problem for a lender, either now or in the future. Since the sellers have already been in contact with the council, it makes send for them to ask for the sign off certificate. If the main things have been passed then it may be just a final visit to get the certificate. But if there is a lot which hasn't been inspected then it could be difficult. I assume they have done the work, rather than a previous owner?

Hoploz

BTW it's good they mentioned it now, when there is time to get it sorted, rather than when a whole chain is on the verge of exchange, which can be really awkward and cause big problems!

simpleguy_blr

Yes, very true, they are being very honest and genuine.

Dan-Dan

Council cant enforce anything after that amount of time, this should reassure future buyers (and you)

You just need to check if possible that its been built correctly , and seeing as its been standing for over a decade, its probably not about to fall down

clockworks_2

Can the sellers pay for an indemnity policy?

Dan-Dan

clockworks wrote: »

Can the sellers pay for an indemnity policy?

Not now the council are aware , but in any event it wont be worth the paper its written considering the council cant enforce anything

simpleguy_blr

Hoploz wrote: »

Yes this could be a problem for a lender, either now or in the future. Since the sellers have already been in contact with the council, it makes send for them to ask for the sign off certificate. If the main things have been passed then it may be just a final visit to get the certificate. But if there is a lot which hasn't been inspected then it could be difficult. I assume they have done the work, rather than a previous owner?

Hi Hoploz,

The extension was carried out by the current seller. The seller is worried that the council might possibly ask for the roof to be removed or something in those lines if the council is called to provide a completion certificate.

simpleguy_blr

Dan-Dan wrote: »

Council cant enforce anything after that amount of time, this should reassure future buyers (and you)

You just need to check if possible that its been built correctly , and seeing as its been standing for over a decade, its probably not about to fall down

Thanks Dan-Dan, I am waiting for the homebuyers report, my mortgage advisor suggested that if required I could engage a structrual engineer to check the extension.

pmlindyloo

How you proceed as regards the purchase of the house may rest entirely with the mortgage lender.

Some require an indemnity policy (which you can't get) if you do not have a building regulation completion certificate. Some may demand a retrospective completion certificate.

So, you need to wait until you hear from your mortgage lender. Unfortunately they are not usually 'au fait' with building regs etc, just have their own rules. You may not have a choice as to which route you have to go.

Hoploz

Pmlindyloo is right. It's all about the lender's view on this. You can have your structural report and be happy but ultimately they can choose to lend or not, likewise when you come to sell in the future. And an indemnity will not be possible. That's why I said the seller will have to look in to getting the certificate, one way or another. It's their fault for alerting the council in the first place. (and their fault for not getting the building inspector to do their job in the first place)

TBH alarm bells are ringing for me - what do they mean, take the roof off? Does this mean they remember the builder saying the inspector wanted something done a certain way, and he disagreed and did it differently, so they know it does not comply? I don't like it.