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Buying a house with loft conversion without building regulations - insurance/selling implications

Last post Wed, Jul 22 2009, 4:40 PM by huckster. 1 replies.
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  •  Wed, Jul 22 2009, 4:40 PM

    Re: Buying a house with loft conversion without building regulations - insurance/selling implications

    JessR

    Re loft built without consent the solicitor will arrange indemnity policy as part of the process. This is something I suspect they regularly come across. When you come to sell, the buyer will also have to take out a policy. I believe the policies are relatively inexpensive. Your mortgage company may not allow you to proceed without the policy.

    In regard to Home Insurance, you are not covered for property defects, only Insured perils, e.g. fire, flood ,storm, subsidence etc. Home Insurers only ask whether the property is in a good state of repair and built of standard construction. As part of the buying process you should have had a survey which should have commented on the condition of the property. If you are worried about the loft and the quality of the conversion, why don't you pay for another surveyor to take a look and provide a report. This would give you peace of mind and you could provide this, when you look to sell the property.

    To clarify not having building consent does not invalidate your Building Insurance.

    huckster

    • Post Points: 35
  •  Wed, Jul 22 2009, 2:16 PM

    Buying a house with loft conversion without building regulations - insurance/selling implications

    Hi,

    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

    • Post Points: 20