House buying - reconversion lack of paperwork

[GianinaC]

Hi,

I am nearing exchange of contracts on my dream home but now an issue has popped up. The Victorian house we are buying was originally a single dwelling, then turned into two flats in the early 90's and then in 2000 turned back into a single house.

The issue is that there is planning permission for the change to flats but nothing to say it was turned back into a single dwelling. This is an issue for our mortgage lender.

On the council tax website it's listed as one dwelling, the flats are listed but have deleted next to them. Then the house as a single property has the council tax band.

Has anyone ever come across this? I can't really get any advice from the local authority, they don't seem to know.

For the current owner to request some sort of lawfullness document would take three months meaning the chain would break and leave everything in a mess.

I'm not quite sure what to do.

No, but the sellers will have to sort it out. I know you're nervous but chain might not break down if everyone can wait. Obviously you've invested money into your move, but is there anywhere else on the market you'd consider moving to?

Generally PP is not required to create a single dwelling from 2 units if no external works are necessary. So there wouldn't be any record, as nothing would exist.

Building Regs would probably be required though.

What exactly is the mortgage lender complaining about? Can you get someone to inspect and say it's been done properly if that is the issue?

Can't really help but I've known cases with odd problems resolved by taking out indemnity insurance.

https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/what-is-indemnity-insurance/

I guess because we are buying as a single house yet there is no paperwork to say it is. Buying 'flats' is different and in some LA's they don't allow a reconversion as it's seen to reduce the housing stock.

I don't feel that is an issue in our LA and it is only down as one property for council tax.

But still they want proof.

Just wondering if you email your LA, explain you are buying and if they'd require the paperwork to be completed. That way, at least you've got something in writing for yourselves and possibly mortgagee might accept. If not, it's quite usual for sellers to pay for an indemnity to cover any future claims, so might be worth asking if mortgagee would accept this in the meantime and what wording they'd want.

Thank you.

I have been told if we contact the LA then it would mean any indemnity is invalid. Is that true?

Also with the mortgage, can I ask them directly or does it need to go via my lawyer?

We are getting really worried now as the clock is ticking rather loudly.

Do not contact the authorities and get the vendor to purchase indemnity - it is usually done via their solicitor. The mortgage company will be very used to dealing with indemnity.