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Indemnity insurance when buying property

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Hi all We are in process of buying our first home. The house floor plan is such that there is a 3mx3m 'wooden living room' attached to main living room. Now, the lender (mortgage provider) has … Read More
dhanepud Avatar
6m, 1w agoPosted 6 months, 1 week ago
Hi all
We are in process of buying our first home.
The house floor plan is such that there is a 3mx3m 'wooden living room' attached to main living room.
Now, the lender (mortgage provider) has noted this as an extension & marked it as a matter for conveyancer/solicitor.
Sellers say the structure is not an extension & is a part of original construction. Hence there is no document or planning permission ever sought.

Sellers have sought approval for some other work which got approved. While seeking approval for this work the plan they submitted has this wooden living room. This is on council website.
Still our solicitors are asking for indemnity insurance.
Can you please advise best thing to do ?
Shall we cancel our buy?

Thanks in advance
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dhanepud Avatar
6m, 1w agoPosted 6 months, 1 week ago
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(13) Jump to unreadPost an answer
Responses/page:
#1
your conveyancer / solicitor should be able to take out a policy with you paying them. We had to take one out for a garage, cost us £75 covering us for something like 75 years and could be transferred to to any new owner.
Basically if any authority at a later date says that it wasnt as per regulations or approved it will cover all the legal costs to put it right so covers you for any comeback. You can't buy the insurance yourselves, it has to be the seller or buyers conveyancer/solicitor;

Have a read at:
http://www.gocompare.com/mortgages/title-indemnity-insurance/
Conveyancer should be going to somewhere like https://cli.co.uk/legal-indemnity-products/building-regulations-legal-indemnity-policies/202


Edited By: kiefer on Jan 05, 2017 21:38
#2
#3
In the grand scheme of things the cost will be a drop in the ocean compared to your mortgage. Just buy it. It's a small annoyance but not worth complaining about
#4
Indemnity insurance is not expensive. We had to take it out on a property we were selling a few years back because the searches threw up that there was a covenant on the building. I knew about the covenant, all it was was that we did not own the mining rites beneath the property and we had the right to draw water from the nearby spring. Thing was we were a week away from exchange and it was quicker to do that than wait for all the relevant paperwork and approvals etc
#5
How long ago were the plans drawn up for the previous approval that the sellers got? If the changes were made more than 4 years ago then there shouldn't be any enforceable action that the council could take so an indemnity wouldn't be needed. Plus under permitted development regs it is likely that the structure would be allowed anyway.
The mortgage company seem to have a stick up their butt over not a lot
#6
if its wooden wouldnt it be classed as a non permanent structure therefore not come under the planning permission rules ? like a shed, outhouse or lean-to?
#7
Cozworth806
How long ago were the plans drawn up for the previous approval that the sellers got? If the changes were made more than 4 years ago then there shouldn't be any enforceable action that the council could take so an indemnity wouldn't be needed. Plus under permitted development regs it is likely that the structure would be allowed anyway.
The mortgage company seem to have a stick up their butt over not a lot


Sellers bought it 10 years back & they bought it as it is. Since definitely more than 4 years do we need an indemnity cover?

Edited By: dhanepud on Jan 05, 2017 22:28: Add comments
#8
tomminator
if its wooden wouldnt it be classed as a non permanent structure therefore not come under the planning permission rules ? like a shed, outhouse or lean-to?


Yes it is a lean to.. and that too less than 3m.. should it not come under planning permission rule?
#9
dhanepud
tomminator
if its wooden wouldnt it be classed as a non permanent structure therefore not come under the planning permission rules ? like a shed, outhouse or lean-to?


Yes it is a lean to.. and that too less than 3m.. should it not come under planning permission rule?


over about 50-100 quidi wouldn't back down if I liked the house but that's the thing we these solicitors they don't care they should know all the ins and outs for the money the charge when something like this comes up they should explain this to u not some place like this. like others have said for all the hassle and stress ate o just pay it and carry on.
#10
Buy the insurance, that's the purpose of it, to make purchases and sales viable.

You're not going to get better advice on hduk than you are from your solicitors!
#11
We had to buy it recently, our old house i put up a conservatory but in the deeds you were meant to contact the original builder for permission to do any work, cost about £80, the sellers should be paying it really as it will come up everytime, i paid it for them as they were 1st time buyers and thought it was only fair anyway



Edited By: deanos on Jan 06, 2017 07:53
#12
deanos
We had to buy it recently, our old house i put up a conservatory but in the deeds you were meant to contact the original builder for permission to do any work, cost about £80, the sellers should be paying it really as it will come up everytime, i paid it for them as they were 1st time buyers and thought it was only fair anyway

No, you were liable to pay that, as you had neglected to apply for the permission to build.
#13
In what regard is the seller liable? Surely just by negotiations. Deanos said he paid because he thought it fair. Seems reasonable.

Edited By: developers on Jan 06, 2017 09:04

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