Do I need indemnity policy?

sb29

FTB here. One of the internal load bearing walls of the house we are about to buy was taken down before 2015 without building control consent. The surveyor did not find anything structurally wrong.


My conveyancer has asked me if I want to put in place an indemnity policy against local council action as the wall was taken down without building control consent. However, at the same time, she also indicated that "given that the wall was removed before 2015, the likelihood of any Local Authority enforcement proceedings are very minimal indeed."


Can the local council actually take action against us? Although I understand that the probability of this is low, what action exactly would they be able to take (e.g. fine us, or ask us to revert the building to the original strucutre)?

davidmcn

sb29 wrote: »

Can the local council actually take action against us? Although I understand that the probability of this is low, what action exactly would they be able to take (e.g. fine us, or ask us to revert the building to the original strucutre)?

If the work didn't comply with building regulations they could require you to redo it so that it does comply with building regulations. In practice they don't of course have enforcement squads coming round to check your internal alterations.

Bear in mind that (if there's no paperwork) you might only have the vendor's word for it that the works were done prior to 2015?

And if you're buying with a mortgage, it's more likely to be your conveyancer making the decision that your lender would need an indemnity policy, rather than giving you the choice.

Asking the vendor to get the indemnity policy at least means you already have it if you in the future have a buyer or lender demanding one.

sb29

The current vendors became owners in 2015 and past images from Rightmove does not show any difference in the structure of the house. Also, my mortgage application has been approved.

davidmcn

sb29 wrote: »

Also, my mortgage application has been approved.

That doesn't mean anything on this point. It's approved subject to the solicitor being satisfied on everything they need to check on behalf of the lender - including whether there are appropriate consents (or indemnity policies) for works done to the property.

sb29

Thank you. That helps a lot! Let me talk to the solicitor once again.

eddddy

Indemnity insurance generally covers costs resulting from the local authority serving an enforcement notice...

...the local authority may serve an enforcement notice on the building owner requiring alteration or removal of work which contravenes the regulations (section 36 of the 1984 Act). If the owner does not comply with the notice the local authority has the power to undertake the work itself and recover the costs of doing so from the owner.

A section 36 enforcement notice cannot be served on you after the expiration of 12 months from the date of completion of the building work.

Link: https://www.planningportal.co.uk/info/200128/building_control/38/building_regulations/3

So enforcement action can't be taken if the work was done more than a year ago.

After a year, in theory, the local authority could still apply for an injunction to make you rectify a problem. But realistically, that would be very extreme - for example, if the building was at risk of falling down and injuring somebody.

AdrianC

The most likely costs you will incur are due to inadequate workmanship and support.

The indemnity will not cover that.

lincroft1710

As Adrian said, an indemnity will not protect you against inadequate workmanship. You should be more concerned that suitable supports were used and the wall is safe.

sb29

Thanks everyone! We got a full building survey done and the surveyors indicated there was adequate structural support.

AdrianC

sb29 wrote: »

Thanks everyone! We got a full building survey done and the surveyors indicated there was adequate structural support.

I'm surprised that a survey was willing to do that, rather than suggest a structural engineer's report. And I'd be surprised if a structural engineer would commit without invasive work.