No building regs, about to pull out

[IHeartNiles]

2 months in to our purchase and enquiries have finally come back to show no building regs on the large extensions that make up approx half the house. Extensions only a few years old, appearance is good but who knows. Apparently vendor in some sort of dispute with the building company. Offering indemnity but that’s not going to be of any use if the building needs work or god forbid replacing. Not even sure if our mortgage lender would agree to loan on it and solicitor would be obliged to tell them.

What a pain in the arse. Will now have to look for a rental as really want to complete on our sale.

Anyone have any experience, reassure me we’re doing the correct thing.so pissed off. Am trying to think how we could get an alert on this sort of thing in the future, I guess ask the sellers to see the paperwork upfront.

@OUB1974

Good luck, interested to hear what happens. We have just pulled out of ours (and it's a much smaller renovation, but likewise we don't want to get stuck with the work, and there are at least 3 issues that would probably fail it that we can see). Everyone keeps telling is something better will come along. Not sure of that helps, it really annoys my husband but it reassures me!

I get that. It’s the only one we’ve really liked in months so a bit of a heart wrench. It was meant to be our last move. Then having to find a rental to allow our sale to complete is a real bummer. Hoping more will come on the early part of 2021.

Did you hear anything back from your vendor @IHeartNiles?

@OUB1974

Did you hear anything back from your vendor *@IHeartNiles*?

Not much really. Talking about trying to get a small part of it retrospectively signed off. The solicitor has written to his to say we need it all signed off before proceeding with the purchase, and that it’s not mortgageable without. I don’t expect any good news. Looking for rental and started house hunting again.

How infuriating. I would def speak to the council .

@CottonSock

How infuriating. I would def speak to the council .

Will do. Just want to draw a line under the whole mess.

Well it’s truly a crazy situation but a very valid one that it’s unmortgageable and yours and every future solicitor will point out. The EA will have to future market as a cash sale only if this isn’t resolved.

I can quite understand your major stress and disappointment but you are dodging a bullet and a better and proceedable house will come up next year. There is something wrong with all of this. You might well find this house sitting on the market for a very, very long time if you care to look back. Nobody in their right mind extends this much without sign off then add into the mix the vendor is a property developer and none of it makes any sense.

I would now be thinking that it’s not going to pass regulations as otherwise why aren’t they moving heaven and earth to get this retrospectively with all that entails, even though it should all have been done at the various sign off stages earlier.

Sometimes things happen for a reason but you just don’t know it at the time. Next year something better will come along and you will breathe a sigh of relief.

@friendlycat

Well it’s truly a crazy situation but a very valid one that it’s unmortgageable and yours and every future solicitor will point out. The EA will have to future market as a cash sale only if this isn’t resolved.

I can quite understand your major stress and disappointment but you are dodging a bullet and a better and proceedable house will come up next year. There is something wrong with all of this. You might well find this house sitting on the market for a very, very long time if you care to look back. Nobody in their right mind extends this much without sign off then add into the mix the vendor is a property developer and none of it makes any sense.

I would now be thinking that it’s not going to pass regulations as otherwise why aren’t they moving heaven and earth to get this retrospectively with all that entails, even though it should all have been done at the various sign off stages earlier.

Sometimes things happen for a reason but you just don’t know it at the time. Next year something better will come along and you will breathe a sigh of relief.

Yes we definitely dodged a bullet. Bit of a shame it took so long to emerge. Next time I will definitely ask to see documents at point of offer being accepted. I don’t think they were planning to sell it but are apparently splitting up. It was the first time on and had just hit the market, I’d been watching Rightmove for a long time and the EA contacted us before it went on. It’s a lovely looking house so will no doubt be offered on again but they will hit the same obstacle. Even if we were cash buyers it would have been a no due to future resale problems.

I looked up mine - it was put straight back on the market and quickly sold stc. Same no-regs layout yet again being marketed as its key feature by a knowing realtor (disgraceful really).

The same thing will happen again though, no building regs will be identified, solicitor will have to tell mortgage company and in the current climate I'd be surprised if banks and lenders will accept indemnity. We're not in a 100% certain rising market anymore. That's if the buyer is even willing to proceed - unlikely. It's been on the market on and off every 6 months now for over 2 years.

Good on you OP for swallowing the sunk costs and walking swiftly away.

@NCHouseBuy

I looked up mine - it was put straight back on the market and quickly sold stc. Same no-regs layout yet again being marketed as its key feature by a knowing realtor (disgraceful really).

The same thing will happen again though, no building regs will be identified, solicitor will have to tell mortgage company and in the current climate I'd be surprised if banks and lenders will accept indemnity. We're not in a 100% certain rising market anymore. That's if the buyer is even willing to proceed - unlikely. It's been on the market on and off every 6 months now for over 2 years.

Good on you OP for swallowing the sunk costs and walking swiftly away.

Awful practice isn’t it. They’re just waiting for someone to come along who they can mug off. Some people seem delusional, their house is so desirable that a buyer will ignore it potentially being unsafe and unsaleable. You’d think at least the EA would view it as a waste of THEIR time. Have you reported the lack of BR to the council? I’m going to do that. My vendor knew better and blatantly disregarded it.

Have you reported the lack of BR to the council? I’m going to do that.

No - just because it appears that the work was done by the previous owner and the vendors have found themselves lumped with it. It's not great that they're trying to foist it off to another unsuspecting buyer...but it's one of those moral conundrums I'm not going to cast judgement on. I wouldn't do it myself but...desperate people do desperate things.

Yours though - the builder is the vendor. They are much more culpable so I can understand why you would report them.

@NCHouseBuy

Have you reported the lack of BR to the council? I’m going to do that.

No - just because it appears that the work was done by the previous owner and the vendors have found themselves lumped with it. It's not great that they're trying to foist it off to another unsuspecting buyer...but it's one of those moral conundrums I'm not going to cast judgement on. I wouldn't do it myself but...desperate people do desperate things.

Yours though - the builder is the vendor. They are much more culpable so I can understand why you would report them.

Yes, therein lies the difference. Plus he’s just been so blatantly deceptive and arrogant through the whole thing.

The one that we've just pulled out of for the same reason has gone straight back on the market - but with a reduction. I wonder if they will tell the next people. The sellers are the ones who did the work, and it looks as though some attempt was made to do it properly, but it wasn't. It's been offered to us again at the reduced price, but that ship has sailed.

@OUB1974

The one that we've just pulled out of for the same reason has gone straight back on the market - but with a reduction. I wonder if they will tell the next people. The sellers are the ones who did the work, and it looks as though some attempt was made to do it properly, but it wasn't. It's been offered to us again at the reduced price, but that ship has sailed.

They won’t tell them, just wait for it to come up again through the legal process. I guess the only way these things wouldn’t arise is if no planning in place, no survey and the buyer not spotting the work.

I think you will find that Indemnity Insurance will only cover the legal costs of any dispute with the council.

It won't cover the cost of the remedial work, which in an extreme case could be more than the original work as there may be demolition costs to consider too.

So what have they done, not bothered to get the building inspectors in at all, or do you think the builders got them in and didn't file the inspections because they didn't get paid?
I really hope the next buyer isn't a) gullible and b) a cash buyer.

@drspouse

So what have they done, not bothered to get the building inspectors in at all, or do you think the builders got them in and didn't file the inspections because they didn't get paid? I really hope the next buyer isn't a) gullible and b) a cash buyer.

Really don’t know. Even after it’s all come to light he’s carried on with being non forthcoming with information. Ignoring our questions or only giving slow, partial answers. Massive red flags everywhere.

The thing is that even with a "gullible" next buyer the solicitor is going to bring this up again. Also as you quite rightly pointed out OP even if the next person is a cash buyer the solicitor will still bring it up and any potential buyer would be reluctant to proceed due to a future onward sale. Therefore, it literally just is not going to go away.

The original EA is now aware of the situation and if they swap to another EA word will get out as EAs within the same area talk.

I have seen of a cash sale locally that was on a bungalow that had subsidence and was circa £150k under the market value. It was subsequently bought up a local builder who could undertake the work at cost.

The Vendor's arrogance will cost him dear in the long run and you have been caught up in it with your own expenses as well. It defies all logic to build an extension of this magnitude and not do it properly. Actually it defies all logic to build any extension and not do it properly.

But I agree with you reporting it (though I don't know what happens thereafter if you do) as you have experienced your own financial loss in fees and a whole load of unnecessary stress. If you had known any of this at the outset you would have run a mile.

@friendlycat

The thing is that even with a "gullible" next buyer the solicitor is going to bring this up again. Also as you quite rightly pointed out OP even if the next person is a cash buyer the solicitor will still bring it up and any potential buyer would be reluctant to proceed due to a future onward sale. Therefore, it literally just is not going to go away.

The original EA is now aware of the situation and if they swap to another EA word will get out as EAs within the same area talk.

I have seen of a cash sale locally that was on a bungalow that had subsidence and was circa £150k under the market value. It was subsequently bought up a local builder who could undertake the work at cost.

The Vendor's arrogance will cost him dear in the long run and you have been caught up in it with your own expenses as well. It defies all logic to build an extension of this magnitude and not do it properly. Actually it defies all logic to build any extension and not do it properly.

But I agree with you reporting it (though I don't know what happens thereafter if you do) as you have experienced your own financial loss in fees and a whole load of unnecessary stress. If you had known any of this at the outset you would have run a mile.

I think if reported it just means that they can’t offer indemnity. That’s what was offered to us, the message was take it or leave it, you are welcome to walk away as we’ll find another buyer who takes a different view.