About to exchange and found out there is no planning permission!

[pippala]

As title we are about to exchange on a one bed flat in London.
Had all the searches back etc
Just had a call from EA to say that another buyer for another flat in the same house (victorian house converted into 12 flats) has found out there is no PP in place.
it is all very odd as follows:-
Mortage turned down in sept by one company, no explaination given except they would not deal with the property management company of said flat conversions.
Second company will offer but only if we use their named solicitor!!
Said solicitor sends copy searches and all seems good.
Another buyer buying flat below ours finds out the house was converted 4years ago without PP.
WHY oh WHy did our solicitor (the one we had no choice to use) not find this out!
We offered in Sept, have paid out £900 on survey and £200 on searches and up to £700 in solicitors fees. If we pull out we will lose all that.
The EA says they will apply for retrospective PP and it won't be a problem as the flats have been rented out for over 4 years and council tax been paid!
They said it may take up to 3mths to get PP and if need be we can rent the flat off the vendor till it is granted.
I hope that means free rent! As what if PP is not granted.
They have a nerve selling a flat that they knew they hadn't applied for PP on.
The EA seems to think it isn't a problem!!!

Take no notice of the EA - not them financially involved, is it.
I would be making a formal complaint against your solicitor with your lender asap.
Free rent for the time it takes to get PP would be the least they can do - assuming they can get PP of course. You should not be expected to pay for someone elses' dumb mistake (giving the benefit of the doubt that what's been going isn't intentionally illegal).
It is a blessing you have found out now - I take it you haven't exchanged yet?

Can you identify a decent solicitor pronto who can give you some important independent advice as to where you stand and how to proceed? (EAs are not equipped to do this). Has the conversion been done in accordance with building and fire safety regs? Or have corners been cut?

This just rings alarm bells with me, I'm afraid.

As an aside - are you sure you want to buy a one-bed flat? Not much room for future life events, is it. If a short-term prospect, aren't you concerned with how the market - including London, and particularly one bed flats - might fair in the coming few years? Have you tried to negotiate hard on something bigger? - feel free to tell me to forf, but it worries me.

cannot do links but if the flats were converted four years ago then the freeholder can apply for a certificate of lawful development (which is like PP) as the development is immune from enforcement action as the local authority has to bring such action within four years of the date of development
www.gdlaw.co.uk/news-and-articles/Articles/property-news/planning-law-immunity-from-enforcement-action-by-local-authority

so technically there should be no problem getting consent from the local authority. However I would be very annoyed and would not buy the property if the freehold did not come with the property - how can you trust the freeholders or managing agent if they don't even bother with an absolute fundamental such as PP

Thank you for your replies.
We have waited all day for answers from the EA and the solicitors.
they both said they would come back to us today but nothing!

Just to say that no company has the right to insist you use their solicitor and no solicitor should be acting for you if they know you have been obliged to use them. Makes me soooo cross!!

I would pull out of this esp atm There will be something cheaper and with less hassle after xmas.

but if it was done without permission, I would be wondering about the standard of building. Probably no building regs approval, so maybe the fireproofing and soundproofing is not up to scratch, and what about the quality of the plumbing and electrical work?

I would not want a flat in a converted old house unless I could see evidence that it had been done to a high standard. There are lots of other homes on the market at the moment with willing sellers....

"they would not deal with the property management company"

Doesn't give you confidence, does it?