Build over agreement and indemnity

Heidihi1888

Hi all, 
I’d be grateful for any advice here please. 

We sold our house in April and we’re in a chain of 4. A FTB is buying ours. During our buyers survey the surveyor advised her to carry out a drainage survey to see if the drain runs underneath. The conservatory was put in by our previous owners in 2008 so before build over agreements where required from 2011. Before instructing a drainage survey she asked if we’d supply an indemnity policy and our solicitor said for her to take this out if she wanted to, which she agreed to. Our buyer went ahead and had a drainage survey for piece of mind and we were told everything was fine. We got to the point of discussing exchange dates with our chain and our buyer states she was unable to get an indemnity policy as she had been in touch with Severn Trent which has invalidated any potential policy. She then asked for a 12K reduction in the price of house based on the estimate the surveyor mentioned in case there was any works needed to the conservatory to fix the drains?! We said a flat no to the price reduction and said we would be putting the house back on the market if she was unable to proceed with her current offer. She has come back to outlet agent today to say the indemnity is a condition of her mortgage so she’s have to try and get another mortgage or she’d want a price reduction. I can’t help but feel that she’s trying to capitalise on the fact we all want to exchange before the staggered stamp duty holiday finishes at the end of month and she’s hoping we’ll just reduce the price. We’ve offered to look into getting an indemnity policy ourselves, does anyone know if her contacting Severn Trent invalidates a policy for us too? I’m not sure what was said but our conservatory was built legally at the time and from what I can see there is very little risk of the water companies hacking up conservatory’s to do repairs if all building regs were in place at the time? I’d be grateful if there’s anyone out there who has had any experience of this? Thank you 

Irishpearce26

I had the same issue with my buyer where the conservatory was built pre 2011 next to a drain (Severn Trent).

I researched their website and found this extract 

Fortunately for homeowners, Severn Trent Water extend the same general policy to transferred sewers that they do to ones that were public at the time of development. Providing normal Building Regulations were followed, and adequate steps were taken to protect any pipes, Severn Trent Water will treat them the same as any other sewer. This means that during any maintenance work, they will take all reasonable steps to protect the property, and repair any damage caused. Where Building Regulations were not followed, Severn Trent would take the same steps they would to protect the sewers that they would in any other circumstances. https://www.severntrentsearches.com/build-over-problems/ 

The conservatory due to its size didn't need planning, they were happy with this and carried on.

The buyer is trying it on, I would ask your solicitor to send this article along with she voided the indemnity and as such you wont be reducing by £12k. 

Section62

Heidihi1888 said:

The conservatory was put in by our previous owners in 2008 so before build over agreements where required from 2011.

When was the house originally built?

Build over agreements were required prior to 2011 if the affected drain was already a public sewer (at the time of construction).