House with extension but no planning permission.

[RussG1980]

Hi Guys,

Looking for a bit of advice before taking things further on a property.

We have found a house we like but there is a caveat from the estate agent which is as follows:

"There is a wooden structure which is extended to the side of the property. We are advised by the vendor that this structure has not had any planning permission or building regulations but has been erected for some time. For this reason it has not been taken into account when agreeing a marketing price."

Upon inspection of the property this "wooden structure" contains a shower/wet room and study" which is a bit misleading as the description makes it sound as though its a leanto!

Can anyone let me know what the legal implications are of this situation and what the mortgage lender would make of this i.e. would they offer a mortgage on this property?

First time buyer so any help, advice and explanation of laws would be appreciated!!

Thanks

[JustinN]

First, a couple of questions -

1: Is the property a Listed Building?

2: Is the property in a Conservation Area?

3: How long has the structure been in place? (IE: How long can it be proved to have been in place?)

Post the answers to these questions, and I will be happy to comment

[RussG1980]

1: Is the property a Listed Building? - No - postwar Semi

2: Is the property in a Conservation Area? - No - 1 mile from city centre

3: How long has the structure been in place? (IE: How long can it be proved to have been in place?) - I am told 6 years but not sure how this could be proven.

Thanks

[JustinN]

In those circumstances there should not be a problem with your mortgage lender: indemnity insurance cover can be arranged for both the breach of planning control (for which enforcement action can still be taken by the local planning authority - they have 10 yrears from the date of the breach to do so) and for the breach of the Building Regulations (the normal enforcement period for this is one year, but a mortgage lender will probably want cover for this as well). There is a single premium to pay - if you let me know the price of the house, I can give you an idea of how much.

As to who should pay this: normally the seller should, as it is their "fault". However, they may argue that the structrure has been ignored in valuing the property, so they are "giving" it away, so you should pay the premium.

When you come to sell, you may have to pay a "top up" premium (usually about £50) to top up the cover to the increased market value of the property

DO NOT CONTACT THE COUNCIL over this, as that would prevent insurance cover being issued

In addition to the above legal points, you should get your surveyor to check the structure carefully - if there was no Building Regulations consent obtained, the construction may be sub-standard

[mads]

Hello could you please give me some advice but from a seller's point of view.

I have received an offer on my property all the conveyancing is now under way.

We have a single storey extension that we had built 8 years ago and we have no planning permission or building regulations. We simply built it, ( however we know it is sound as it was by a builder family member)

If I provide the sale price (£92,000) are you able to advice what policies and the price of them.

My solicitor , or the buyers solicitor have not yet mentioned anything about it.

hope you can help..

[JustinN]

Different insurers will have slightly different premium scales, but Countrywide Legal Indemnities (for example) would charge a one-ff premium of £105 for a combined policy in respect of both lack of planning permission and lack of Building Regulations consent. It is a condition of the policy that the buyer must have a survey or valuation report that does not reveal any "adverse features" connected with the work and does not recommend any remedial action in respect of it.

I hope this helps

[mads]

Hello, thanks for your help. Is it OK to ask you a few more questions?


At what point should I raise this with my solicitor? Do I wait until the buyers solicitor asks (if at all) or should I tell them now?


How long does it take to arrange the policy ie will it hold things up with regard to the sale of my property?

The buyer already had a vaulation survey for their mortgage, so will they need another or will this one be ok?

thanks!

[JustinN]

Fell free to ask. As for answers -
1: Wait until the buyer raises the problem
2: There should be no hold up: I use self-issue policies for routine problems like this. Some solicitors refer to insurers and get a premium quote first, but the insurers usually respond by return of fax
3: As long as the valuation did not reveal any problems, it will be fine

[mads]

Thanks for your help! Very reassuring