We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Indemnity policy for lack of building regs - do we have to tell the lender/broker?
FTB565
Posts: 5 Forumite
Hi all
Am very close to exchanging on a property which has no building regulations sign-off for some work done about 3 years ago (new bathroom and new windows). The sellers didn't get building control approval, we think because they didn't know it was needed. Our main concern is the bathroom - they said it was done by a family friend who's a builder and have provided photos of the work being done. We had a level 3 survey carried out before we knew the documents weren't in place, which didn't flag anything of concern (in fact the surveyor told us the bathroom looked like a really good job). So we think probably the work is fine. Our solicitors have advised getting an indemnity policy which we are going ahead with.
My query is about our lender. We've asked the solicitor several times if we need to inform them, and they've said we don't need to mention it to our broker/lender because the solicitors also act for the lender.
Is that correct? I've been reading through our mortgage offer and it says we have to let the lender know about anything which would affect their decision to lend.
I think because we don't think the solicitor has been all that great, I don't know if I trust them that much, so want to be sure we aren't going to end up with problems because we haven't told the lender about the indemnity policy/lack of building regulations.
It's taken ages to get to this point and we're just about to exchange, which is why I don't want to open a can of worms with the lender/broker if it's unnecessary. But I also don't want to have not told the lender something when it was our responsibility.
Am very close to exchanging on a property which has no building regulations sign-off for some work done about 3 years ago (new bathroom and new windows). The sellers didn't get building control approval, we think because they didn't know it was needed. Our main concern is the bathroom - they said it was done by a family friend who's a builder and have provided photos of the work being done. We had a level 3 survey carried out before we knew the documents weren't in place, which didn't flag anything of concern (in fact the surveyor told us the bathroom looked like a really good job). So we think probably the work is fine. Our solicitors have advised getting an indemnity policy which we are going ahead with.
My query is about our lender. We've asked the solicitor several times if we need to inform them, and they've said we don't need to mention it to our broker/lender because the solicitors also act for the lender.
Is that correct? I've been reading through our mortgage offer and it says we have to let the lender know about anything which would affect their decision to lend.
I think because we don't think the solicitor has been all that great, I don't know if I trust them that much, so want to be sure we aren't going to end up with problems because we haven't told the lender about the indemnity policy/lack of building regulations.
It's taken ages to get to this point and we're just about to exchange, which is why I don't want to open a can of worms with the lender/broker if it's unnecessary. But I also don't want to have not told the lender something when it was our responsibility.
0
Comments
-
Yes, your solicitor does this. Don't confuse matters by trying to talk to the lender yourself!3
-
Ok fab thank you! That's what I was worried about doing, but wanted to make sure we weren't going to fall foul of the mortgage conditions. I presume the stuff we have to tell the lender about ourselves would be if we lost our jobs or something, and anything to do with the property itself is sorted by the solicitor?
0 -
Yes, it just gets confusing if you try chatting to someone at their call centre about the legal stuff, because the chances are that neither person on the call really understands what you're talking about...FTB565 said:Ok fab thank you! That's what I was worried about doing, but wanted to make sure we weren't going to fall foul of the mortgage conditions. I presume the stuff we have to tell the lender about ourselves would be if we lost our jobs or something, and anything to do with the property itself is sorted by the solicitor?2 -
In 90% of cases your solicitor will also be acting for the lender.
If he knows, it's up to him whether to inform/advise his 'other' client - the lender.
0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.5K Work, Benefits & Business
- 604.4K Mortgages, Homes & Bills
- 178.6K Life & Family
- 262K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards