Buying house with indemnity clause (garage converted without planning permission)

DragonRider83

I wonder if anyone can advise on this?

My partner and I are house-hunting and we've found one we REALLY like - it ticks every single box and this morning we made an offer. However, we were then told (it wasn't mentioned at the viewing, we think accidentally, because other people who saw it the same day were told) that there's an indemnity clause on the house because the garage conversion (now an extra room currently used as a bedroom which we'd want to use as an office) was done by the current owners without planning permission, so the responsibility would pass on to us and technically the council could make us change it back to a garage.

I've been researching all morning and I've found quite a lot of evidence that this wouldn't happen. The 'garage' is integral and converting it did not increase the size of the property at all. The work is all good quality, sound and safe. It still looks exactly like a garage from the outside (the current owners still have the non-functional garage door attached!) and there is still room on the drive way for at least two cars, possibly three. The house isn't in a conservation or any kind of protected area.

It seems highly likely that it wouldn't even have needed planning permission as it would come under 'permitted development rights' - I've found that only 10% of integral garage conversions need planning permission at all. And even if by any chance it did on a technicality, it seems that if we applied for retrospective planning permission, only 12% of such applications are refused.

There is part of me that also thinks that if it's gone undetected by the local council so far, how would they ever even find out if we didn't tell them? It still looks like a garage from the outside after all. Retrospective planning permission would be the most honest course of action but of course if we do that, there is the risk that they could refuse. But I'm not sure I could be comfortable feeling like we're living with the Sword of Damocles hanging over us, as it were, so chances are we would apply for retrospective planning permission.

My thoughts are that it's likely worth the risk, because we really love the house otherwise, but I'd be really grateful for people's opinions. Thanks in advance!

Doozergirl

I should think it might be a lack of Building Control Approval, as you're probably right about the planning permission issue being moot and it falling under permitted development. 

The fact that it still has a garage door suggests that it hasn't been done to the regulations.  

Does it have a building regulations completion certificate is the question.  

loubel

First thing to check would be whether it actually needed planning permission. 

What about building regulations? Is the conversion safe and suitable to use as a room? Does it have a window, is it insulated, well ventilated, has a suitable exit if there's a fire?

DragonRider83

It certainly looks compliant - obviously we'd ask to see the building regulations completion certificate, but at the viewing it looked like it had been done to a high standard - there was a window, insulation, heating, etc, and it was right next to the front door (and on the ground floor - it's only one storey) so easy for fire escape. The garage door is non-functional and has been left on purely as a 'decoration' to keep it looking similar to other houses in the neighbourhood and possibly to avoid anyone noticing that it had been converted. Though that could be for good honest reasons such as to make it look less appealing to burglars.

I guess my niggling question is why they didn't either ask for planning permission in the first place (or find out that it wasn't necessary) or apply retrospectively before trying to sell. I don't know if they have any reasonable grounds to think that permission would have been or would now be refused - and realistically they're not likely to tell us if they do!

user1977

You haven't told us how long ago the works were done, which might make a difference.

Also, not sure exactly what you mean by an "indemnity clause on the house" (unless you've mixed up some terminology yourself)? The likely solution is that the vendors (or you) get an indemnity policy, which insures against enforcement action by the council.

daveyjp

Some new builds have a permanent planning restriction against conversion, especially if the garage has been provided to meet off street parking requirements.

DragonRider83

Apparently the work was done two years ago.

The indemnity issue (I may have got mixed up, this is new to me) basically states that the responsibility for the conversion would transfer to us and that if the council demanded we put it back, that would be down to us.

I wouldn't like to guess how old the house is, but likely maybe a 1950s/60s build...? So certainly not a new development.

Hoenir

DragonRider83 said:

It certainly looks compliant - obviously we'd ask to see the building regulations completion certificate, but at the viewing it looked like it had been done to a high standard - there was a window, insulation, heating, etc, and it was right next to the front door (and on the ground floor - it's only one storey) so easy for fire escape. 

What's the insulation ?  Anything can be made to look good. Might have terrible heat retention though. Days of cheap energy are over for the foreseeable future.  What was once a good idea might be no longer. 

DragonRider83

That will be something else we'll want to see evidence of in the building regs, and also probably via a second visit, ideally in the evening, to see what the temperature is like in there!

user1977

DragonRider83 said:

The indemnity issue (I may have got mixed up, this is new to me) basically states that the responsibility for the conversion would transfer to us and that if the council demanded we put it back, that would be down to us.

Well, yes, that's the default which would apply anyway. Your house, your problem.

EmmyLou30

What you need is to check it has been done to a suitable standard and to get the vendor to take out an indemnity insurance policy (which is the wording that is confusing people here as you said indemnity when I think you mean responsibility - this would naturally pass to you if you were to buy the place, nothing needs to be written for that to happen).

An indemnity insurance policy will cover the costs of turning the garage back into a garage and the resulting loss of value in the house for having lost a habitable room should anyone force you to do that. As you've rightly surmised, this is unlikely. But as the policy wouldn't cost the vendor much and this is a problem they've made for themselves that they will have with anyone who tries to buy the house and has a halfway competent solicitor....it's for them to provide and pay for.