Indemnity Insurance

SallyAnneBooth

If I were you I would push for the BR first, then if that fails then get the indemnity.

I'm not sure how much BR will cost the Sellers. I can't imagine it being anywhere near £500, it should be alot cheaper- unless the Seller has not applied for Building Regs at all.

Timescale depends on whether they applied for the BR in the first place, if Building Control already now about it and have done previous visits then they usually send someone out within 1-2 weeks to do the inspection and issue the Completion Certificate.

G_M

SallyAnneBooth wrote: »

If I were you I would push for the BR first, then if that fails then get the indemnity.
except the seller might contact the council 'first', making indemnity insurance invalid.


I'm not sure how much BR will cost the Sellers. I can't imagine it being anywhere near £500, it should be alot cheaper- unless the Seller has not applied for Building Regs at all.
That assumes Building Control, inspect, approve, and issue a cerificate.

What if they insist on rectification of aspects of the conversion that do not meet BR standards?
Or insist the seller opens up the walls, foundations, ceiling/roof for inspection?

would the Indemnity Insurance be worth while or should i push for BR sign off?

It depends what you want protection from!
If you want protection from the cost of the council later insisting you remove or alter the conversion due to non-compliance, insurance will cover that. But do you really think the council has the time, manpower (or interest) in hunting down completed garage conversions......?


If you want protection from a cowbow conversion, BR reulisation will ensure it was done properly.
A survey will help with this of course, though a surveyor (like Building Control) can only report on what he can see.........

Joniemaximus

Thank you, as an update i contacted the Estate agent and they confirmed that the vendor has been in contact with Building Control to get the final sign off but are not keen on the cost outlay when they want to sell (Particularly as G_M says there might be rectifications to pay for).
I highlighted to the Estate agent that if this is the case there is no point in getting an Indemnity Policy ( i might be wrong but they didn't contest this)

As i see it now we have 3 choices:
1. Get a structural survey and make a decision then, whilst hoping that the local council don't ask for the work to be reset to its original state.
2. Push for Building Control to sign off the work. Neither party are part of a chain so whilst we all want to move, timing is less of an issue but the vendor has concerns about the cost involved of this.
3. Come to an agreement with the vendor about starting the BC sign off with a reduction in price should there be remedial works required as it's likely any work being completed would be after the sale, but add value to the house.

Joniemaximus

Further to my post, for where i live a Garage conversion to habitable room is a fee of just under £500 and may require an inspection of the work that has been carried out.

davidmcn

Joniemaximus wrote: »

3. Come to an agreement with the vendor about starting the BC sign off with a reduction in price should there be remedial works required as it's likely any work being completed would be after the sale, but add value to the house.

Are you buying with a mortgage? If so your lender would almost certainly want it resolved one way or another before completion, not trust you to sort it out afterwards.

Joniemaximus

We are, but if the valuation of the house without the work done matched theirs would they still not sign off?

davidmcn

Joniemaximus wrote: »

We are, but if the valuation of the house without the work done matched theirs would they still not sign off?

Their valuation will assume there are consents (or suitable indemnity policies) for all works done. They won't be interested in trying to figure out what the cost is of potentially improving (or undoing) the alterations. Talk to your solicitor (assuming they're also acting for your lender) but I expect the lenders will need retrospective consent or insurance before they hand over their money.

Joniemaximus

I think unfortunately it will probably be they have to get the Building Control sign off or we wont be able to proceed because if what we're being told by the Estate agent is true Building control have been informed of the work so an indemnity insurance wouldn't protect anything. Which means our lender is unlikely to sign off.