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Kevin

Lack Of Building Regulation Approval And House Insurance

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HI,

I have a question regarding building regulation approval.

I am buying a property which is generally good and passed valuation. However, my lawyer found that an internal conversion of the property does not have planning permission (it is required though) and building regulation approval.

From the legal side, the lawyer has asked the seller to buy a indemity insurance and I am not so worry about this.

My question is will lacking building regulation approval invalidate my house insurance? Shall I inform my mortgage lender about this issue although I have got the mortgage offer already? I bought the house insurance from my mortgage lender, but I am a little worried that they approve my mortgage but does not insure my property.

Could anyone share your opinion?

Many thanks.

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HI,

I have a question regarding building regulation approval.

I am buying a property which is generally good and passed valuation. However, my lawyer found that an internal conversion of the property does not have planning permission (it is required though) and building regulation approval.

From the legal side, the lawyer has asked the seller to buy a indemity insurance and I am not so worry about this.

My question is will lacking building regulation approval invalidate my house insurance? Shall I inform my mortgage lender about this issue although I have got the mortgage offer already? I bought the house insurance from my mortgage lender, but I am a little worried that they approve my mortgage but does not insure my property.

Could anyone share your opinion?

Many thanks.

Speak with the insurer. The policy relies on " utmost good faith" which means that you have to positively declare anything that may influence a prudent unwriter whether specifically asked or not. Given that you have concerns, it's clearly a material fact. Personally I wouldn't have thought it would be an issue. In the event of a claim the policy just wouldn't cover the cost of any improvements that are necessary just to bring the property up to building regs standard, that's if anything is required. You can apply for a building regulation regularisation certificate to prove that everything is ok. If possible do this before buying and get the vendor to stand any costs.

Your question does beg the question though, what are you doing buying a property with prices on the cusp of a collapse!!!

Good luck anyway.

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HI,

I have a question regarding building regulation approval.

I am buying a property which is generally good and passed valuation. However, my lawyer found that an internal conversion of the property does not have planning permission (it is required though) and building regulation approval.

From the legal side, the lawyer has asked the seller to buy a indemity insurance and I am not so worry about this.

My question is will lacking building regulation approval invalidate my house insurance? Shall I inform my mortgage lender about this issue although I have got the mortgage offer already? I bought the house insurance from my mortgage lender, but I am a little worried that they approve my mortgage but does not insure my property.

Could anyone share your opinion?

Many thanks.

Hi

I have actually encountered the same problem a few weeks ago. Extension had planning permission, Building notice but not end of work certificate. The property had an indemnity insurance.

I was worried like you that my building insurance could be invalidated in case of fire for instance (I know it did not have the fire safety norms). Spoke to my lawyer who explained that it should not be a problem but that regardless of the building insurance we should ask for a structural survey to be done on the extension and that to be paid by the seller (we had a Home Buyer survey done on the property).

Actually the vendors decided to do the work and have the council issue a end of work certificate which is even better.

My solicitor's reaction to my question regarding building insurance was: "Most properties in the UK are not to up to standard regarding current regulation so it is normally not a problem", you should have a chat with your solicitor.

(my solicitor just rang me while I was writing this message to say that we have now exchange!!!!! Youhoooo!)

Good luck and enjoy your new home if you decide to go ahead with it

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PS: regarding your mortgage, no need for you to tell them anything. Your solicitor has to protect by law your and your lender's interest. If he tells you that the indemnity policy is enough for your lender then it is the case.

i hope that helps

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thanks everyone for your answer.

I have spoken to my solicitor and she confirms this will not affect my house insurance. I have exchange arrange next week.

Good luck everyone!

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If I had a pound for every property I'd sold that didn't have a building regulations completion certificate for work that had been carried out, I'd probably be pretty close to retirement.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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