Lack of building reg's, indemnity cover & house sale adv

[wizbongre]

Hi All,

Looking for some advice as in the middle of a house sale (or trying to be anyway!)

We bought our house (originally built sometime around the 20's/30's) nearly 8 years ago already extended with a large section across the back of the house giving us an extra living room and dining room, and a smaller section across the side extending the kitchen out. My understanding is the extensions were carried out long before we bought the place (around 10 years so nearly 18 in total.) A large number of the houses in our area are extended in a similar manner as the original houses were quite small with decent size plots.

When we bought, our homebuyers report raised a potential issue with the side extension in that it appeared to be only a single leaf of brick with cladding outside. On investigation we were informed the side extension is actually timber frame and then insulation sandwiched between marine-ply or similar. Our solicitor advised there was an indemnity policy in place for an aspect of the work. There were no major concerns raised to us so we bought the house and have been here since with no problems.

Now, we have it for sale and had an offer agreed but our buyer has just pulled out after getting their survey and under their solicitors advice. The buyer only had a valuation report for their mortgage but apparently it mentioned the single leaf brick extension as being an issue.

I'm not sure what to do now. As far as I'm concerned, the survey is incorrect based on the surveyor's assumptions as to the build method, which has triggered a harsh reaction from our buyers solicitor and subsequently the buyer. It's a shame they didn't want to at least discuss the potential issue but hey-ho.

What I am trying to understand is if this is going to turn into a massive problem with any prospective buyer?
If so, why wasn't it a problem for us when we bought? (Is it something that could differ depending on the solicitor, buyer, etc?)
Is there anything we could/should do?

Any help/suggestions/advice would be most welcome as its really put a massive damper on our Xmas with our buyer pulling out just now.

Thanks.

 

[^woody^]

There is nothing wrong with an insulated, clad timber frame. The valuer was wrong to mention it as an issue, and the Solicitor is not qualified to advise whether it is an issue or not - but that is by-the-by now.

A buyer can nit-pick anything, and you are always reliant on the buyers surveyor not being a numpty.

It's difficult to say what would be best - leave it and wait what another buyer thinks (after all you bought it with no problems) or you could build an inner wall, mess up the room and try and make it less noticeable - but risk further questions as to the new work and if it needed b/regs permission or not, all over again

 

[wizbongre]

Woody,

Thanks for your reply. I didn't think there was anything seriously wrong (as that was what we told when we bought it) but it is re-assuring to get someone else's opinion that it isn't a massive nightmare.

I've since spoken with my agents and solicitors again and the reality of it is, the root seems to be our buyer nit-picking as you put it. Can't argue with that as it is their money they are commiting for a long time.

Everyone seems to have the opinion we shouldn't overly worry and instead should wait for another buyer.

We could build an inner wall but this would be a massive undertaking as we'd have to remove and essentially refit half of the kitchen. As you mention, this may trigger further works as electrics/plumbing would also be involved.

Thanks for your input to this - it's amazing how a random stranger's input from the internet can help

 

[wizbongre]

Just to follow up on this, we've not long found out our buyer has pulled out of three purchases now. So nit-picking probably doesn't come close to describing it.

 

[Deluks]

What's known in the motor trade as a 'tyre kicker', hoping you'll drop the price.
Make sure you fully explain the wall construction to any future surveyors.

 

[wizbongre]

Tyre kicker is exactly the term I've used too.

Unfortunately, this particular one has probably cost me a lot of money in wasted solicitors fees and survey/mortgage fees on the house we were hoping to buy as they are now looking for another buyer. Very, very annoyed.

In terms of the surveyor who came, he wasn't interested in chatting at all and made it obvious he wanted me to leave him alone. Also very, very annoying.

The system of buying and selling houses in this country is a complete joke that only seems to benefit surveyors and solicitors but that's another topic...

 

[forward]

Background: Sold and purchased a few times in the ‘good market’ times of past decade, sold Sep 2011 and just completed on another. A very different market nowadays.

Mortgage or cash?

Mortgage: 8 years back to get a mortgage sale a blind eye would be turned to such issues. Nowadays they will not take risks in case they have to sell the property. Suggestion: consider obtaining structural report. I just had a full structure report for under £400 so expect around £150 for extension. The bad news is it might show you need to sell to cash buyer, but - even so be upfront to avoid solicitor fees and other lost fees due to lost sale(s).

 

[ferdinand2000]

Background: Sold and purchased a few times in the ‘good market’ times of past decade, sold Sep 2011 and just completed on another. A very different market nowadays.

Mortgage or cash?

Mortgage: 8 years back to get a mortgage sale a blind eye would be turned to such issues. Nowadays they will not take risks in case they have to sell the property. Suggestion: consider obtaining structural report. I just had a full structure report for under £400 so expect around £150 for extension. The bad news is it might show you need to sell to cash buyer, but - even so be upfront to avoid solicitor fees and other lost fees due to lost sale(s).

You could get a structural survey as suggested and then keep quiet about it unless the buyer asks the awkward question.

ML

 

[wizbongre]

Hi, thanks for the suggestions about the structural survey. Thing is, there was no problem with our buyer getting a mortgage, they just didn't like/understand some of the points mentioned in the survey.

We have another potential buyer lined up who hopefully will understand more... Fingers crossed.

 

[Inky Pete]

Or, if your structural report is fine and reads well, give your estate agent a copy and request that it be provided to anyone who's seriously interested in buying - along with a covering letter explaining that experience has taught you that the construction method used in the extension is beyond the experience and competence of most basic level surveyors and house valuers, so you've gone to the trouble and expense of having your own full report prepared.

 

[wizbongre]

Ok, all good suggestions on the structural survey front.

Playing devils advocate, what happens if the structural survey discovers the extension isn't up to scratch? I'm guessing that after nearly 8 years there is little we can do about our purchase but it may put us in a position of not being able to sell?

 

[^woody^]

There is often no point in a seller organising his own survey, as there is the inference of bias as the surveyor is working for the seller, and the report will contain a clause that the survey us purely for the Sellers benefit and can not be relied upon by a third party.

So a wise buyer, and a wise lender will always insist on their own survey

Obviously, if a seller commissions a survey which highlights detrimental issues, then common sense means that it won't get shown to a buyer

 

[forward]

Not only is it a different market as regards funding but also these past years have seen an increase in mortgage companies trying to recover their loses from surveyor and solicitor.

Hence surveyor will pass on to mortgage company any possible issues, they in turn will pass that report on to solicitor.

Solicitor will ensure any structural issues, particularly anything that is 'non- standard' (not bricks) has either more in-depth reports or a safer simpler bet advise buyers to walk away - is that what happened in your lost sale? For as you say the buyer was happy, so who was unhappy – the solicitor.

If there are structural issues then your market is a cash buyer or buyer requiring a small mortgage. as the company will most likely get their money back so will be less concerned.

 

[skotl]

Not only is it a different market as regards funding but also these past years have seen an increase in mortgage companies trying to recover their loses from surveyor and solicitor.

Hence surveyor will pass on to mortgage company any possible issues, they in turn will pass that report on to solicitor.

Exactly right. The whole situation is different now, compared to 5 or 10 years ago, as we discovered.

Best recommendation I would offer is to ensure that your solicitor is prepared, both for the regs/situation and with a sheaf of paperwork explaining why it is not an issue. Our seller's solicitor was not prepared for either, leading to lots of misinformation and stress.

Good luck!

 

[BuildingSurveyor]

A copy of the building regulations application made for the extension, along with completion certificate should be proof enough that the extension was built to a satisfactory standard, speak to your local building control officer. A solictor should not be advising potential buyers on anything other than legal matters and should he/she have any concerns regarding a buildings condition, should recommend a professionally prepared structural survey rather than suggesting not to buy at all.

A structural survey prepared by a chartered Building Surveyor (MRICS) would help to satisy any potential buyer and lender of the buildings !current! condition.It may be worth offering to commission such a survey of the extension if you have concerns over this happening again.