House sale without building completion certificate - Please advice

Orchid96

We are in the process of selling our property and just came to know that the buyers are still concerned about the alteration work carried out in our property which doesn't have Building Regulation Completion certificate. We have an outbuilding with 2 stores and WC. We converted the small store room into a shower cubicle almost 4 years back, but was unaware of the requirement for Building Regulation Completion certificate at that time.

During the sale process, we came to know that this should have been informed to building control as it involved plumbing and electrical work. As there were no structural changes invovled and the conversion was done by a professional, we thought of getting a regularisation certificate from Council and applied for it.

We got the below feedback from Council after the site inspection "The former external passage area between the dwelling and the outhouse has been covered over and enclosed at front and rear elevation making it an internal area. In addition to this, heating and lighting has been installed which in effect has created an extension of the dwelling. The use of the shower room is not possible without access to it being an enclosed space and therefore this area forms part of the works. As this space is heated, thermal insulation is required to the enclosing walls, floor and ceiling/roof of the WC, shower room and hallway. In addition, an extractor fans is also required to the WC and shower room since the existing window now opens to the alley and not to the outside. A Part P electrical installation certificate is required as well."

We spoke to the surveyor over phone again to reinstate that we only did conversion of store room and the rest was already there when we bought the house, but the response was that building regulations have changed recently. The surveyor was satisfied with the plumbing work including sewage water connection. We added an exhaust fan and provided the electrical certificate for the work based on the recommendation. The surveyor even promised over the phone that an email mentioning there are no legal issues in this alteration work can be issued. However the response didn't explicitly state what was promised, but mentioned as below: -

"Afraid we can't issue the completion certificate until the thermal insulation to the floor, enclosing walls and ceiling/roof of the WC, shower room and hallway is installed."

It is evident from this statement that the alteration work carried out is compliant, and only needs thermal insulation in the outbuildings to get a completion certificate. We felt that the surveyor feedback was a better assurance than the indemnity insurance, as this now shows the quality of work carried out. We have informed this to the buyers, but now their worry is that they can't get indemnity insurance as the council is involved. Do you think the lack of Building Regulation Completion certificate can impact buyer's mortgage? Please advice. Many thanks in advance!

davidmcn

It doesn't sound like the works add any significant value to the property - is that correct? i.e. worst case scenario is either do the works required by the council, or undo them completely. Your difficulty is that the lenders prefer to have the box ticked of either "has certificates" or "has indemnity insurance". "Recent works with council involved and refusing to sign off" isn't great, so it may mean the lender taking a view on the risk depending on what the remedial works would cost and how high their LTV percentage is.

Leaving aside what the lenders might think, are the buyers bothered?

Orchid96

Thank you for the response. We added it since we only had a family bath in the house. In hindsight, just getting an indemnity insurance would have been the best solution (cheaper too) but that option is gone now. Outbuilding is single brick construction, so not sure about the thermal insulation costs. Also the council requirement is for the whole of outbuilding, although the alteration was done only on one of the store rooms. Buyers are in discussion with their solicitors and lender.

Orchid96

We got further update that buyers are waiting for further advice from their solicitors. But we don't know exactly what is this for? We are still not sure whether this is impacting their mortgage. Can any one please help.

davidmcn

Orchid96 said:

We got further update that buyers are waiting for further advice from their solicitors. But we don't know exactly what is this for? We are still not sure whether this is impacting their mortgage. Can any one please help.

Not really, no. We have no more information than you do.