Advice Regarding Property Purchase...

I've had an offer accepted on a house and everything had been going through pretty smoothly. The surveyor then identified some internal loadbearing walls had been removed and said in his report the following 'it is assumed all building control / local authority approvals are in place'. I've found out the seller is unable to provide this documentation and is unwilling to have a retrospective sign off as that would mean removing plaster to expose the beams along with the associated making good etc at their own cost. As an alternative they've offered to pay for an indemnity insurance policy to cover the work that was done. Has anyone on here had one of these documents put in place before when purchasing a property? Are they worth the paper they're written on? My main concern is establishing the property is safe to live in but secondly if I ever come to sell the property in the future it then becomes my problem / issue.

 

I would want to know when the work was carried out , check for signs of structural movement . But most importantly I would want it opened up and checked with the relevant paperwork issued . In the future it would not only be a problem trying to sell on if not felt with . But also may effect your ability to get a mortgage at present

 

Can they tell you when the work was done and who by?
If the walls removed were load bearing, then there should be steels (RSJs) now in place supporting the floor joists/ceiling supports, for which someone should have had structural engineers calculations done. Can these be provided?
You have the upper hand here as no lender will sanction this purchase without this proof of the work being done correctly and in line with building regs.
So unless the vendor is expecting a cash buyer instead, he needs to start cooperating or he is stuck with an unsaleable property.

 

Were any photos taken when the work was done? I had this issue with a property years ago, where the owners had removed a wall and fitted an RSJ. The work was done correctly, but somehow they "forgot" to inform Building Control. However, during the work the owners took lots of photos. Building Control accepted these as evidence and provided a retrospective certificate. This avoided the need to remove plasterboard to expose the RSJ. Just a thought.

 

Indemnity insurance is virtually worthless at the best of times, but if building control are already aware then the policy would be invalided anyway. Don’t touch it.

 

From the banks point of view, the indemnity policy would cover retrospective planning. I wouldn' expect the policy to cover any costs required in remediation work if you incur any problems further down the line.

It's all about confidence in the property you are buying and if the vendor can' provide this then there will always be other properties....

 

I would not envisage it costing much ,to core or cut out a small area for building control inspection. to ensure peace of mind for your purchase and investment ,this type of thing while it may be ok is not worth the risk

 

Essentially, the steel needs to be strong enough, with calculations to prove this. It needs to be installed correctly I.e. sat on padstones or structurally sound pockets in the brickwork, and would often need to be encased in fire retardant plasterboard.
I'd like to think this could be all settled for between £500 and £1000.
Bit of a pain for the vendor, I admit, but the responsibility is fully on him/her as the surveyor acting on behalf of you and your lender will demand this evidence or it's no sale.

 

Thanks for this, I will certainly go back and ask the question. As I pointed out above I've had a good look myself and there aren't any obvious defects on the surface but we don't know what's behind the plaster / plasterboard. The people we're buying off also have young children so I've no reason to doubt them that it is safe to live in but I would just want that reassurance from Building Control. I also want to protect myself if I came to sell the property in the future so it doesn't become an issue.

 

Whatever you do don't buy the property without the Building Control certificate. You'll never sell it again and the problem won't go away. As others have said, it wouldn't cost that much to expose the beams and patch up, and the seller will have to pay for that work and for the certificate. Otherwise walk away.

Most people moving into a new house end up redecorating anyway, so the work done will soon get covered up. Once again good luck.

 

Thanks for your reply, I was thinking of going back to the solicitors with two options. Option 1 I ask again if they will have the retrospective sign off done at their own cost including all making good and provide the certificate thereafter. Option 2 is we negotiate a fair and reasonable reduction in the purchase price on the basis I will arrange to have the sign off done after completion but obviously I take risk of additional costs if any issues are found during the inspection.

 

In all honesty, if the house is the one you want, the price is right, then this should be easy to negotiate.

It’s quite common - most of the time they have been done right, but it’s best to know.

Depending on location of said RSJ, to take out and swap ain’t that difficult. It’s what’s around it that’s a pain - kitchen units etc.

Don’t lose faith. Sure you can work something out. It wouldn’t put me off for the right house.

 

My step son was buying his first house with a large slice of help from us and we had a similar issue on the house he had wanted. It had a smallish extension on the kitchen at the back with no known paperwork relating to it and no building control. We didn't even know how old it was. The solicitor informed us about the need for indemnity insurance. It put us off enough to walk away.

 

I'd consider the potential cost as if the works were inadequate. What would it cost to put right?

Lower my offer accordingly should they be unwilling to prove otherwise.

 

I personally have never known anyone make a successful claim from an indemnity insurance policy. The list of exclusions in a standard policy is frightening and I’d hazard a guess that the vast majority of conveyancers who are implementing the standard policies haven’t even read the policy to satisfy themselves that the policy is adequate and meets the needs of their client(s).

There’s a horrible lazy culture amongst a lot of residential conveyancers at the moment where advising a client to insure against something is the default response irrespective of the severity of the issue.

As for building regulations issues, whilst the issue may be insurable that doesn’t mean that it’s safe and compliant.

Be wary.

 

Indemnity Insurance is normal and shouldn’t put anyone off minor stuff. As others say, adjust your offer a little.

 

Or just walk away mate.. don't get involved..

 

The buyer's in control - make a value judgement - if you want this gaff above all else then they need to assure you it's legit - if they won't then I'd walk away, but house purchase can be an emotional decision, so if you go ahead, make sure you've saved enough on the price to put it right, or insist the vendor does.

Indemnity ? **** that.

 

I would strongly advise against this. As I understand it indemnity insurance generally only covers against costs arising from enforcement action taken by building control. It will not cover the cost of repairing structural issues which may come to light down the line or any other problems arising from the lack of building regs sign off such as difficulty mortgaging the property, insurers refusing to pay out etc.