Welcome to the reallymoving forum
Got questions and need some advice? Our forums have answers on everything from choosing the right property, to renting and selling.
  • If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Announcement

Collapse
No announcement yet.

No building regs

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • No building regs

    I've had an offer accepted on a house i really love. There is a very small extension that i've now know has no building regs approval. I have a surveyor going to inspect on Monday to see whether it has been properly built.

    Assuming it is structurally sound will the lack of building regs affect my building insurance or my mortgage offer?

    The lender has already done their own valuation and are not aware of this problem - am i obliged to tell them or the future insurance company?

  • #2
    Re: No building regs

    How long ago was the extension constructed? You can obtain indemnity insurance for lack of building regs which normally appeases the lender, ask the seller to pay for this policy if it is required.
    I am a dual qualified lawyer and surveyor but what I say here is not legal advice!
    http://www.thepowerlinegroup.co.uk Pylon Compensation

    Comment


    • #3
      Re: No building regs

      No one seems to know when it was built, however i suspect it was around 2005.

      The thing is my lender did their own valuation survey and approved my mortgage before anyone knew about the lack of building regs.

      I do note that in the mortgage offer small print it does mention the solicitor should ensure building regs approval has been obtained if any alterations have been made to the property.

      Does this mean either myself or my solicitor are obliged to inform the lender of the lack of approval and if we do will this affect the mortgage offer? My solicitor is now fully aware of the situation and has not mentioned informing the lender.

      I gather there are lots of properties out there with alterations that have no regs and provided the build is safe it's not necessarily a big deal - what do people usually do?

      From the reading i've done it seems the indemnity policy would only protect against the local authority taking legal action, which would seem highly unlikely.
      Last edited by ameliajane; 19-10-2012, 07:26 AM.

      Comment


      • #4
        Re: No building regs

        If your solicitor believes its not an issue, it must be because the work is exempt from building regs. In which case there is nothing to tell the lender. Small extensions do not normally need buildings regs approval.

        I can't see any solicitor risking their position on the mortgage company's panel by not disclosing the situation if buildings regs was required but never obtained.
        I am a dual qualified lawyer and surveyor but what I say here is not legal advice!
        http://www.thepowerlinegroup.co.uk Pylon Compensation

        Comment


        • #5
          Re: No building regs

          I'm assuming it's not exempt as it has both gas and electricity running in it. My solicitor was the one that the lender recommended so i suppose they wont do anything to jepardise their position with the lender - hadn't thought of that!

          Comment


          • #6
            Re: No building regs

            Really up to the solicitor to decide whether or not to tell lender. If it was only 7 years old I would tend to tell the lender if I was acting.

            Building Regulation Indmenity Policies mainly seem to exist to pacify stupid lenders who think that the risk of the Council taking action is greater than that of the buidlign falling down, being a safety hazard etc. These policies don't cover the safety etc aspect and as OP has already said the risk of Council enforcment action is usually very low indeed.

            Your surveyor will tell you whether he thinks there are any real problems with the work.
            RICHARD WEBSTERwww.rwco.co.uk
            As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.

            Comment


            • #7
              Re: No building regs

              Thanks, that's helpful - i'll leave it up to the solicitor to decide whether the lender is to be informed - they seem to have decided not!.

              I will have the survey report in a couple of days but have spoken to the vendor who says she had a full survey done when she bought the house and it didn't identify any issues, so hopefully all will be well.

              You've confirmed what i had read about the indemnity policy! My solicitor did say they would ask the vendor for this if i wished it but both myself and the vendor are already operating at the lower end of the property market and i wouldn't want to incur her any unecessary costs.

              I think if the survey report comes back with nothing scary i'll just go ahead with the purchase.

              Comment

              Working...
              X