We had an offer accepted on a house 2 months ago, but this has been slow to progress as we're concerned about the fact it has a loft conversion, does not have a building regulations certificate, and which we've been advised by the current owners was done pre-1985 meaning the council are not able to provide retrospective consent (but dont have evidence of date as was done by a previous owner).
Our solicitor has requested a lack of buildings insurance indemnity policy to protect against any future council action, however we are concerned about the implications for home insurance and selling the property in the future.
With regards to home insurance the property is a leasehold flat with share of freehold - and the insurance arranged by all 3 freeholders as a joint policy held with AXA. I have read in various places that work done without building regulations could invalidate a home insurance policy, however on calling AXA they didnt seem to think it would (although i was only told this by someone in a call centre and obviously that wouldnt stand up in court should we ever need to make a claim and they dispute it as a result of the lack of regulations).
Has anyone been through a similar situation or able to provide advice? it would be greatly appreciated as this is becoming a bit of a nightmare! Thanks