Considering a home purchase that lacks building regulations? Here's what to take into account.
Buying a House Without Building Regulations Approval: A Risky Move
Purchasing a property in the UK without the necessary building regulations approval can lead to a host of problems and legal complications. Here's what you need to know.
The Risks of Ignoring Building Regulations
Building regulations serve as a marker of quality and safety, ensuring a home is safe, comfortable, and energy-efficient. Failure to obtain consent can raise questions about the quality and safety of the work and its structural integrity.
If non-compliance is discovered, you might be required to undo or demolish any work that does not comply, a costly and time-consuming process. You could also face fines or enforcement actions from the local authority.
Selling the property becomes more difficult because buyers and their solicitors usually ask for building regulation completion certificates. Lack of these certificates can reduce buyer confidence and complicate mortgage approval.
Insurance claims may be rejected if an incident occurs related to non-approved works, exposing you to financial risk. Future renovation or extension work could be refused or delayed by the council due to missing prior approvals, limiting property improvement options.
Potential Solutions
If unauthorized work is found during the purchase, solicitors often require indemnity insurance to proceed with the sale. However, this is generally seen as a workaround rather than a substitute for proper approval.
Retrospective approval by the local authority or relevant regulatory body is the only way to completely remove the risk of enforcement. Checking the work by a qualified individual or company can provide comfort that a structure/appliance is safe without approaching the council and invalidating any indemnity policy.
The Role of Indemnity Insurance
Indemnity insurance provides cover if building regulations consent is missing. However, it's important to note that such insurance is often a temporary solution and may not cover all scenarios. Lenders may not accept indemnity policies for certain types of work, such as loft conversions, and may require the work to be checked by a structural engineer or that the local authority issue retrospective consent.
Indemnity policies cover the buyer financially for the consequences of enforcement action, but they cannot prevent the action itself. When selling a home with unapproved work, it is important to pass on an indemnity policy to the new buyer, ensuring the policy limit covers any increase in value to the property.
The Importance of Compliance
While a lack of building regulations approval might result in savings on the purchase, these savings could be offset by the need for extensive remedial work or enforcement action by the local authority. It is generally advised to ensure all work is approved or to obtain retrospective approval to mitigate these risks.
Key Points
- Building regulations ensure a home is safe, comfortable, and energy-efficient.
- Failure to obtain consent can lead to legal, financial, and practical problems.
- Selling a property without building regulation completion certificates can complicate mortgage approval.
- Indemnity insurance provides cover but is not a substitute for proper approval.
- Retrospective approval by the local authority is the only way to completely remove the risk of enforcement.
- It is generally advised to ensure all work is approved or to obtain retrospective approval to mitigate these risks.
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