You’ve found the house of your dreams, that ticks all the boxes, that is until your solicitor finds out that there are no documents to show planning permission was obtained or that it has met building regulations.
It is unlikely that a house will have been built in its entirety without planning permission; the most likely scenario is that the house has had an extension built without planning or has not received the relevant Building Regulation certificate.
If work was done to a property, the general rule is that if it was done over 4 years ago, permission by the council cannot be enforced.
However, if it has been less than 4 years, your solicitor may recommend that the seller take out indemnity insurance on your behalf. This means that should the council enforce action, as the seller was the one that broke the rules, they are the ones who should pay the price.
Indemnity insurance will cover the cost of a claim. It is important to note however that the costs of repairing or replacing items to obtain permission are not covered. For example, if the boiler has not been installed correctly and requires a new flue, you would need to cover this cost.
As indemnity insurance will not cover the cost of a replacement or repair, it is important that a buyer has a survey done before exchanging contract. This will allow any discussions to take place so that the problem may be rectified, or insurance put in place.
It may be possible to negotiate with the seller for them to obtain the relevant documents before completion, especially as any buyer they find will experience the same problem, however this can often take time and involve more costs.
Don’t despair! LPL can advise you on the best course of action for your circumstances.
If you would like to speak to one of our expert Conveyancing solicitors ring us on 0333 305 5189 or email us at enquiries@lpropertylawyers.co.uk
