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Indemnity insurance?

(10 Posts)
Potterer Sun 17-Mar-13 14:35:54

Our vendors paid £75 to insure the fact that they had fitted UPVC windows which weren't FENSA approved.

So in the grand scheme of house buying, it was peanuts. Good luck with your move.

PolterGoose Sun 17-Mar-13 09:29:53

Message withdrawn at poster's request.

lisad123everybodydancenow Sat 16-Mar-13 22:14:36

Message withdrawn at poster's request.

Elansofar Sat 16-Mar-13 18:48:49

What is the insurance for? Is it a covenant issue or a building regs issue?

lisad123everybodydancenow Fri 15-Mar-13 08:46:25

Message withdrawn at poster's request.

lisad123everybodydancenow Fri 15-Mar-13 08:45:02

Message withdrawn at poster's request.

LittlePushka Fri 15-Mar-13 00:29:36

Dubious in what way?

redandwhitesprinkles Fri 15-Mar-13 00:03:22

Web Bought our house chimney stack held up by very dubious joist, we paid c.£100 indemnity. We sold our house with loads of work without certificates, we bought insurance for buyer for £75. Not worth letting sale fall through for.

LittlePushka Fri 15-Mar-13 00:00:43

Two things here:

Planning Consent:
A certain amount of work to a property can usually happen without the need for planning consent. this is called "permitted development". The porch thing is highly likely to fall within permitted development rights...but not certainly so (eg if permitted development rights are suspended as in National Parks or exhausted, as where the size limits have been reached by previous development.

If the development was completed more than 10 years ago the Local authority cannot in any event take action requiring consent. Your buy will usually take a view.

However, and here lies the ruib: if your buyer is buying with a mortgage, then the solicitor acting for the mortgagee (usually same solicitor as acts for buyer) then they will insist upon an isurance policy because the risk of being sued for loss by anyone affected as a result of lack of planning consent falls very squarely on the solicitors shoulders. That is a risk few solicitors will take when the isurance is relatively inexpensive. It is a fair position to take because it is the responsibility of the person carrying out the work to comply with the law - and if the LA said verbally no consent was required, then to prevent risk the owner ought to have had that confirmed in writing.

Building Regulations Consent

Unless there is a serious risk of the development being structurally unsound then building conrol cannot generally take action for lack of consent after 12 months after the completion of the development. That does not mean the porch thing (grin) is safe but that is a matter for your buyers surveyor to consider.

However, as with lack of planning consent, it will be considered to be a defect in the title to your property and the buyers solicitor needs to ensure that this "defect" is remedied by the acquisition of an appropriate insurance policy. An individual lack of B Regs policy for a property valued at £110,000 is in region of £35 -£40. Joint policies and higher value property increase the risk and thus the premium increases.). As your solicitor his/her opinion as to what policies are required and for details of the costs.

The cost of policies will depend on the market value of your house, can be bought for each of the above defects individually or as a combined policy. The policies can be put in place by your solicitor immediately and subject to receipt by your solicitor of the premium, no delay will affect the process.

Bottom line? Irrespective of the legal niceties of what the law is and whose responsibility it is, if you can meet the byers requirements with the purchase of relevant policies then get them bought - ! Your solicitor can argue why they are not required and what contribution if any the buyer should make to the cost til he/she is blue in the face - but the mortgagee is king in your particular situiation for the porch thingand the buyers solicitor has to meet their requirements of risk suit or removal from the panel (don't ask -- whole differnet ranty thread!)

Why has your solicitor not told you all of this?

lisad123everybodydancenow Thu 14-Mar-13 23:22:30

Message withdrawn at poster's request.

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