Indemnity insurance or insist on building work? Pic inc.

LD88

I’m in the process of buying a ~1970 terraced house that has had work to convert its garage into living space by a previous owner (as a new user can’t provide a pic, maybe later). It’s looking like there is no building reg permission for this. In addition the first floor windows were reduced from ‘door sized’ to smaller windows. Also a previous owner also no permission.

The result is the means of egress in the event of a fire are the stairs down into the kitchen. A H&S no-no I’m told by the surveyor.

My estate agent and solicitor are encouraging me towards indemnity insurance. I’m told this is common but all I feel is it won’t address the underlying problem and be an issue when I come to sell.

My options as I see it, and please correct if I may wrong:
1. Insist on the building work (likely a partician wall from the door to the stairs, or at least changing the windows on the first floor)
2. Insist on retrospective approval (this may take a while and result in #1 being required, delaying purchase further?)
3. Insurance and hope for the best (could end up paying this personally when selling myself?)

Can anyone advise? Is this common and nothing to worry about. Have I missed anything?

Many thanks

middleclassbutpoor

Indemnity insurance is only there to cover you incase local planning take enforcement on you.

Indemnity doesn't cover you for faulty workmanship, poor construction or having any other issues which may or may not cause you an issue whilst you live there or at a time when you come to sell.

If you know the work has been done for longer than a year, the indemnity is pretty worthless anyway as that is the period of time that action can be taken in terms of enforcement. Likewise if anyone goes to apply for approval of planning retrospectively then no one will be able to get indemnity going forward as it becomes null/void where the local planning team are made aware of the issue.

You can ask for whatever you want but be prepared that unless you accept the indemnity, it could result in you needing to walk away if the seller doesn't want to risk the next person not being able to buy who would accept indemnity insurance.

LD88

Hi thanks for the quick reply!

The work was carried out much longer than a year ago. So does that mean there is no risk of enforcement? Or just that I can insure against it?

I’m not sure where that leaves me in my options. I guess I either raise it with building control and risk the deal or put up with it and hope the next buyer does the same. Neither is ideal.

G_M

LD88 wrote: »

My options as I see it, and please correct if I may wrong:
1. Insist on the building work (likely a partician wall from the door to the stairs, or at least changing the windows on the first floor)
higly unlikely the sellers will agree. And if they do, it will take time - can you wait? Months? Also, although the work might be signed off for BRs, their motivation to do a high-spec job will be zilch

2. Insist on retrospective approval (this may take a while and result in #1 being required, delaying purchase further?)
As you say. Will take time and by the sound of it require 1) above anyway

3. Insurance and hope for the best (could end up paying thispersonally when selling myself?)
Fingers crossed you don't have a fire........


Can anyone advise? Is this common and nothing to worry about. Have I missed anything?

Yes relatively common - lots of people get cowboy builders in to do cheap jobs........


Comes down to whether you want to buy and live in a jerry-built property.

societys_child

I guess I either raise it with building control . . .

What good will that do you?

EachPenny

LD88 wrote: »

My options as I see it, and please correct if I may wrong:
1. Insist on the building work (likely a partician wall from the door to the stairs, or at least changing the windows on the first floor)
2. Insist on retrospective approval (this may take a while and result in #1 being required, delaying purchase further?)
3. Insurance and hope for the best (could end up paying this personally when selling myself?)

Are you buying with a mortgage? If so, then the views of the mortgage company will be important.

If the property is potentially unsaleable due to fire risk then you might have problems getting a mortgage.

There is a big difference between compliant work which has been carried out without BR approval and sign off, and non-compliant work which poses a clear safety risk.

LD88

Thanks for all the input.

Interestingly the mortgage suveyor did not raise it and instead cleared the property.

Another option if the owner is willing; getting retrospective approval. Get the work costed, take it off the price of the property and then arrange the work when I own it. Maybe a bit of an ask..

EachPenny

LD88 wrote: »

Interestingly the mortgage suveyor did not raise it and instead cleared the property.

Your solicitor is probably obligated to raise it with the mortgage company even if their surveyor missed it.

LD88 wrote: »

Another option if the owner is willing; getting retrospective approval. Get the work costed, take it off the price of the property and then arrange the work when I own it. Maybe a bit of an ask..

You won't get retrospective approval if the work was non-complaint at the time it was carried out. Egress in the event of fire is (for obvious reasons) a subject which councils are acutely aware of at present, and is possibly one of the few circumstances in which they might seek to take enforcement action against historic work.

"Family killed in death-trap house fire that council building department approved" is not a headline any council Leader, Chief Executive, or Head of Legal Services is going to want to read.

Your best bet would be to establish the cost of carrying out work to make the building fully compliant, ask the vendor to knock this off the price, and see whether the mortgage company would proceed on that basis (in which case they might want a retention).