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Advise On Offer We Made.

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Just looking for some advise and opinion.

So we've seen a house we like over the weekend, it's good property but a speaking to the owner I know they've done a bit of shady renting part and not paying tax. Anyone put in an offer this morning below asking (was up for offers in excess). A couple of odd things about the exchange of words with the EA though.

A. EA wants to see the funds we have for the deposit, the reason he is giving is: new rules from the property ombudsman and ensures we have the funds we say we have to make the offer acceptable. Usually I don't care if an EA knows as we'll never increase and we know they want to sell but I'm just wondering if he is BS'ing me about the new rules.

B. They've declared the property has an extension but no completion certificate, so I assume no planning was obtained. The vendor is putting forward an endeavour policy incase of an eventuality but this it the first time I've encountered something like this before so I'm not fully aware of its meaning, If the extension needs to be knocked down, is the vendor liable and to what extent? and are we exposing ourself to future pitfalls.

Any comments, Questions or Advise would be great as we attempt to buy a nice house at a bad time.

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I think you need to check how many years ago the extension was built...

Also, be careful, if the extension was built without planning permission, make sure it wasn't built over any sewer/drainage pipes

check with your solicitor!

couple of threads here:
http://forums.moneysavingexpert.com/showthread.php?t=303994

http://forums.moneysavingexpert.com/showthread.php?t=1986075

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A. EA wants to see the funds we have for the deposit, the reason he is giving is: new rules from the property ombudsman and ensures we have the funds we say we have to make the offer acceptable. Usually I don't care if an EA knows as we'll never increase and we know they want to sell but I'm just wondering if he is BS'ing me about the new rules.

Oh, with regards to this, this was typical for us, all EA's we saw wanted us to talk to their mortgage advisors first and show proof of deposit / funds.

This isn't such a bad thing, stops idiots putting offers in which they can't follow up, you'll be surprised how many people do that,

good luck

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I wish I had edit function!

Your solicitor should be able to tell you how to get insurance policy with regards to the extension, if in future it needs to be knocked down, or the water company need to

drill through the floor to access public pipes etc....

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I may be wrong but assume you are talking about an indemnity rather than endeavour policy?

If so, this is something your solicitor can and will deal with but if you’re not at that stage yet then with apologies for working from memory, this is what I recall from being in a similar situation.

If the extension is very old and pre-dates the current owners who themselves had indemnity insurance in case of problems then the lack of a completion certificate is inconvenient but understandable.

If the extension was undertaken by the current owners then while they may not have needed planning permission, building control should have been involved to inspect the work and confirm it met the then current building regulations.

The thinking behind indemnity insurance is that for a single premium, you can insure against subsequent problems with the council arising as a result of a lack of planning permission or adherence to building regulations. Indemnity insurance premiums are typically just a few hundred pounds (because it’s very unusual for claims to be made) but as you’re discovering, the lack of a completion certificate or indemnity insurance can affect the saleability of a property, may delay completion and could be the basis for price negotiation.

If you’re in any way uncertain about the quality of the extension then a structural survey (rather than a simple mortgage valuation survey) would be advisable as would insistence upon an electrical and (if appropriate) gas survey.

Hope that helps.

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I have recently put offer in for house as i have mortgage agreed but they did not ask me for this information

but they did reject my offer by text message which i though was a bit rude and unprofessional

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Yeah to confirm EA's want to know your deposit and financial situation, but that was the limit We did not need to show proof. For the people that offered on ours, the EA detailed down each of their deposits and readiness to move, all part of considering the offers now given the la-la land prices.

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I may be wrong but assume you are talking about an indemnity rather than endeavour policy?

Yea Sorry it was an indemnity, it was a surprise as it was revealed to me after I offered and I was trying to recall what was said over the phone. Being a FTB It's the first time I've ever come across this issue so somewhat confusing especially when the young EA is trying his hardest to get more money out of me.

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Yea Sorry it was an indemnity, it was a surprise as it was revealed to me after I offered and I was trying to recall what was said over the phone. Being a FTB It's the first time I've ever come across this issue so somewhat confusing especially when the young EA is trying his hardest to get more money out of me.

If your offer is accepted, I can't recommend getting a good solicitor highly enough, don't go for online solicitors, and avoid any solicitors EA suggest to you!

We live in Cambridgeshire and used Irena Spence, http://www.irenaspence.co.uk/ our solicitor was Christina Sheppard, and she was excellent. (around £700)

Get your own RICS surveys done, don't rely on the bank valuation survey. It should throw up structural issues which you can renegotiate price on (around £500)

ask if the seller has gas and electric surveys, if not I highly recommend getting these too, gas around £80, electric around £180

After surveys, I managed to knock nearly 10k off original asking price, to sort out faults....

Its getting close to xmas, so If the seller doesn't accept your offer, they probably have to keep their property on the market till next year, so you should have some

leverage with negotiations.

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