Mortgage lender requesting more info following notification of indemnities

Chilli6

So I'm 4 mths into a chain free purchase. 
My solicitor requested the seller pay for 3 indemnities, for mines and minerals (don't know much about that), sewers and lack of planning permission/building regs.
The solicitor notified Nationwide 3 weeks ago and they've now replied wanting photos of the extension, plus written proof that they didn't need permission.
The seller said from the beginning that the extension didn't need PP due to being built on existing conservatory layout. My solicitor requested the indemnity. 
Does anyone have experience of this and what may happen if the seller provides no proof?
I thought the indemnity was to cover the risks here. 
Just to add, my loan to value is only 30% so even if the extension falls down the house will still be worth more than the mortgage.
Was hoping to exchange imminently before this happened

davidmcn

How old is the extension? It's not necessarily the case that the solicitor even needs to complicate matters by asking the lender about it.

Chilli6

davidmcn said:

How old is the extension? It's not necessarily the case that the solicitor even needs to complicate matters by asking the lender about it.

It's 16 years old. 
That's what I wasn't sure of - did the solicitor have to make the lender aware as part of the process?
The seller was already getting impatient and reluctantly paid for the indemnities. Hopeful he won't pull out though as we're so far into it now.
Just so worried NW will withdraw the mortgage offer and I'll be back to square one. I don't even care that there's no planning permission! 

davidmcn

Chilli6 said:

davidmcn said:

How old is the extension? It's not necessarily the case that the solicitor even needs to complicate matters by asking the lender about it.

It's 16 years old. 
That's what I wasn't sure of - did the solicitor have to make the lender aware as part of the process?

Arguably yes, given how over the top the Nationwide's instructions are on this point:

https://lendershandbook.ukfinance.org.uk/lenders-handbook/englandandwales/nationwide-building-society/#C9106

i.e. "Where there have been any subsequent changes to the property and there are no appropriate building and planning consents, and issues will not be resolved on or before completion, please contact the Issuing Office. We will need to confirm with our valuer that the property is structurally sound and still a suitable security (an indemnity policy will not replace the requirement for this check to be carried out)."

In practice, anybody with any sense knows there's no chance of enforcement after 16 years, and even if there were then an indemnity policy is an acceptable solution. No idea why the Nationwide wants "written proof they didn't need permission". I'd probably just have stayed quiet rather than open that can of worms!

Chilli6

davidmcn said:

Chilli6 said:

davidmcn said:

How old is the extension? It's not necessarily the case that the solicitor even needs to complicate matters by asking the lender about it.

It's 16 years old. 
That's what I wasn't sure of - did the solicitor have to make the lender aware as part of the process?

Arguably yes, given how over the top the Nationwide's instructions are on this point:

https://lendershandbook.ukfinance.org.uk/lenders-handbook/englandandwales/nationwide-building-society/#C9106

i.e. "Where there have been any subsequent changes to the property and there are no appropriate building and planning consents, and issues will not be resolved on or before completion, please contact the Issuing Office. We will need to confirm with our valuer that the property is structurally sound and still a suitable security (an indemnity policy will not replace the requirement for this check to be carried out)."

In practice, anybody with any sense knows there's no chance of enforcement after 16 years, and even if there were then an indemnity policy is an acceptable solution. No idea why the Nationwide wants "written proof they didn't need permission". I'd probably just have stayed quiet rather than open that can of worms!

Thankyou, that's really useful to read. Guess I'll just wait and see then. Will update thread once I know, in case others find it useful to know the outcome 

Thrugelmir

Chilli6 said:

Just to add, my loan to value is only 30% so even if the extension falls down the house will still be worth more than the mortgage.

The lenders concern is liquidating the property quickly if the need arises.  Market for properties that require rebuilding is somewhat limited. 

Chilli6

UPDATE-
Fortunately the seller was quick to respond with photos and to let my lender know he had no proof that PP wasn't required. As it went to a fast track email, NW have replied within 2 days and said fine to proceed but recommend an indemnity - arrrggghhh!! It's the indemnity we already have that made them request further info. I'm seriously not sure what this past stressful week was I need of.
However I am very happy we're now looking to complete 4th December, woohoo

allIcouldwishfor

Chilli6 said:

UPDATE-
Fortunately the seller was quick to respond with photos and to let my lender know he had no proof that PP wasn't required. As it went to a fast track email, NW have replied within 2 days and said fine to proceed but recommend an indemnity - arrrggghhh!! It's the indemnity we already have that made them request further info. I'm seriously not sure what this past stressful week was I need of.
However I am very happy we're now looking to complete 4th December, woohoo

Ah, that's great news - well done.
Sounds like you're nearly over the line.