Indemnity insurance

[noddyholder]

The ongoing saga of our house purchase.We are buying a house where there is a room in the roof which was done in 1979 no planning or anything and the current owner has no paperwork.The EA now says he will have to get an indemnity policy out to cover it and we aren't sure what this means!Any ideas???

it's a policy to cover the shortfall between the valuation and the purchase price

Does that mean the building society will change the valuation?We can't get a return call from our solicitor and are being v cagey.Our BS valued the house 45k less as they considered they wanted to see building regs now that there aren't any the agent says the vendor will get indemnity insurance but we are worried that when we come to sell we will have the same problem

What are you going to do?We are worried that we are paying 45k too much and when we sell the room will still not be counted regardless of an indemnity policy No one ever rings back!

bumping for the night crew in case any of you have any building/planning knowledge xx

We have decided that if the buyer doesn't drop the price so that we can put it right we will pull out This unfortunately means losing our buyers too as they need to move pronto!It seems the indemnity can stop the council from imposing building regs but still doesn't make it a bedroom just a loft or occasional room damn lovely house too!