Problems two days before exchange of contracts
Discussion
Hi all,
I am looking for some advice on some issues raised by my solicitors on the property I am purchasing.
Back at the start of August our offer on a repossessed house was accepted and we instructed the solicitors at the end of August. We are due to complete on the 30th September, yet only today the solicitors have told me there's a problem with one of the extensions on the property in that there's no evidence to show that it has met building regulations or planning if permission has been granted. They tell me that I will need to either apply for retrospective planning and regulations (I really do not want to do this) or take out some indemnity insurance at a cost of £250. I suggested that the seller (Halifax) should pay for this and the solicitor said she'd 'try' to get them to foot the bill, if not I will have to pay. If the solicitors and the sellers have not seen the house itself or the valuation report how would they have known about it?
My main concern is that they've asked for our Mortgage Valuation Report to pass on to the indemnity insurers to make sure that the are no issues with the extension mentioned but in the 'General Remarks' section of the report the surveyor has written:
"Legal advisers should ensure the conversion of the garage into a reception room, conservatory, external garage and extension were all carried out within necessary planning permissions and building regulation consents.
The substantial front/side extensions and outbuildings are constructed of single skin brickwork. This will be prone to penetrating dampness, provides poor thermal insulation and offers limited structural stability."
Yet, in the 'Works to be carried out' section he has written "None". Is this report likely to cause the indemnity insurers to turn us down?
The Solicitors have told me that the conservatory and external garage have all the necessary approval and they just need me to send a cheque tomorrow for £15 to pay for the council search fee.
The house we are buying really is an absolute bargain and we plan to tear down the extension and replace with a 2 story extension in a couple of years so if we can't get indemnity insurance based on the above report can we proceed anyway?
The other issue is that our home insurance needs to cover both the house we are selling and the house we are buying from the date of exchange (which the solicitors now can't confirm due to the above) I was just hoping to swap them over on completion but the solicitor said we can't. I don't know how I can get this sorted when no one can give me an exchange date?
Sorry for the essay but this all seems very odd and last minute to me and a totally different experience to our previous house moves.
I am looking for some advice on some issues raised by my solicitors on the property I am purchasing.
Back at the start of August our offer on a repossessed house was accepted and we instructed the solicitors at the end of August. We are due to complete on the 30th September, yet only today the solicitors have told me there's a problem with one of the extensions on the property in that there's no evidence to show that it has met building regulations or planning if permission has been granted. They tell me that I will need to either apply for retrospective planning and regulations (I really do not want to do this) or take out some indemnity insurance at a cost of £250. I suggested that the seller (Halifax) should pay for this and the solicitor said she'd 'try' to get them to foot the bill, if not I will have to pay. If the solicitors and the sellers have not seen the house itself or the valuation report how would they have known about it?
My main concern is that they've asked for our Mortgage Valuation Report to pass on to the indemnity insurers to make sure that the are no issues with the extension mentioned but in the 'General Remarks' section of the report the surveyor has written:
"Legal advisers should ensure the conversion of the garage into a reception room, conservatory, external garage and extension were all carried out within necessary planning permissions and building regulation consents.
The substantial front/side extensions and outbuildings are constructed of single skin brickwork. This will be prone to penetrating dampness, provides poor thermal insulation and offers limited structural stability."
Yet, in the 'Works to be carried out' section he has written "None". Is this report likely to cause the indemnity insurers to turn us down?
The Solicitors have told me that the conservatory and external garage have all the necessary approval and they just need me to send a cheque tomorrow for £15 to pay for the council search fee.
The house we are buying really is an absolute bargain and we plan to tear down the extension and replace with a 2 story extension in a couple of years so if we can't get indemnity insurance based on the above report can we proceed anyway?
The other issue is that our home insurance needs to cover both the house we are selling and the house we are buying from the date of exchange (which the solicitors now can't confirm due to the above) I was just hoping to swap them over on completion but the solicitor said we can't. I don't know how I can get this sorted when no one can give me an exchange date?
Sorry for the essay but this all seems very odd and last minute to me and a totally different experience to our previous house moves.
my current property has a rather naff ground floor extension (Polish builders have been laughing and pointing to it for the last few weeks) but it didn't stop me buying the place (it was put in place years ago, so no problems with permissions etc.) .. so yeah if you're going to tear down the extenstion one day, and willing to put up with the poor insulation then it doesn't matter. re: insurance, i just started a new insurance policy on the exchange of contracts ('buildings only' worked out cheaper anyway), and then terminated my previous policy on completion - non? p.s. i'm a bit carefree as well.
Edited by fido on Tuesday 29th September 12:04
Have you already spoken to the planners about your proposed extension? If they say all ok then I wouldnt worry. You could probably spin out the process of planing permission/appeal etc on the existing for ages, and as long as they agree to the proposed new stuff then I'd not worry. They have better things to do than take action against something when they know that it is going to be replaced with something ok anyway.
Thanks for all the replies, I think I've calmed down a little now.
The solicitors have told me that the indemnity insurers will be fine with the comments in the mortgage report, so that's one worry out of the way. Like most people who have commented I am pretty carefree about the actual structure I just hate all this red tape.
Sorted the buildings and contents insurance so just waiting on them to fax the questionnaire back and hopefully we can exchange next week, just a bit nerve racking as the house we are buying (a repossession)is still on the market till exchange!
The solicitors have told me that the indemnity insurers will be fine with the comments in the mortgage report, so that's one worry out of the way. Like most people who have commented I am pretty carefree about the actual structure I just hate all this red tape.
Sorted the buildings and contents insurance so just waiting on them to fax the questionnaire back and hopefully we can exchange next week, just a bit nerve racking as the house we are buying (a repossession)is still on the market till exchange!
TooLateForAName said:
Have you already spoken to the planners about your proposed extension? If they say all ok then I wouldnt worry. You could probably spin out the process of planing permission/appeal etc on the existing for ages, and as long as they agree to the proposed new stuff then I'd not worry. They have better things to do than take action against something when they know that it is going to be replaced with something ok anyway.
I haven't spoken to the planners yet as I don't want to alert their attention to the property until the indemnity cover is sorted, but your suggestion sounds like a good idea once the deal is done.Gassing Station | Homes, Gardens and DIY | Top of Page | What's New | My Stuff