Indemnity scheme

[jlo]

Hi,

New here, just going through the process of buying a grade 2 listed house that has been fully refurbed & put on the market with vacant possession.
We are porting our existing mortgage over, but the mortgage company want to know the following -

1,Type of standards indemnity scheme' or whether it was supervised by an architect.?
2 Also the name of the builder who dealt with the renovation?

The vendor is on holiday so we are worried especially with tight time constraints to get moved in. We have checked with the council & have looked at both approved planning applications. But I think we need to see that all the work was 'signed off'.
The estate agents say that the vendors solicitors should have paperwork to say that all completed work has been 'signed off'.
I assume therefore that this should satisfy the mortgage company that a grade 2 listed property has had all the work done to the required standard & therefore safe in their knowledge lend us the money!
Without such the mortgage company would be concerned about carrying out a mortgage survey & lending money should they not be able to redeem it on a property in the future.

Any advice, I am really worried.

 

[Flyfisher]

An interesting question. 'Normal' building works requiring planning permission would be overseen by the council's building control department and they would sign off all the work. However, works carried out with Listed Building Consent may not always have building control involved and, in my experience, there may be no one in an independent official capacity to sign off the work.

Personally, I would chase the vendor or their solicitor since it's ultimately their problem if such a thing holds up the sale of their house.

I suppose a lot depends on what sort of work has been carried out on the property and whether it was a 'decorative' restoration or a fully structural rebuild.

But I'm a little surprised that the mortgage company would ask for such a thing since they'll almost certainly insist on their own valuation survey anyway.

 

[Jellyfire]

Hi, when we purchased there were some issues as to what work may have been done without Listed building consent including the building of an extension. Our solicitor advised us to take out an indemnity policy to be safe. We initially tried to get the vendor to cover the cost. As it turned out, we managed to track down the consent, but we had by then taken the view that the relatively small cost of indemnity (about £300 or £400 from memory) was a price worth paying in the overall scheme of things rather than jeopardise the purchase. If you can get the vendor to pay it if they can't provide the relevant proof then so much the better.

I'd ask your solicitors advice as a first course of action, and he shoul be able to source you a suitable policy if necessary

 

[garnett]

Hi

You can take out an indemnity re planning enforcment, but not listed building enforcment. Unatherised works to a listed building are a criminal offence with potential for a heavy fine or imprisonment with no time limit.

I would seriously question any solicitor who is giving you this advice.

Good luck

Garnett

 

[Penners]

works carried out with Listed Building Consent may not always have building control involved and, in my experience, there may be no one in an independent official capacity to sign off the work.

Personally, I would chase the vendor or their solicitor since it's ultimately their problem if such a thing holds up the sale of their house.

I'm a little surprised that the mortgage company would ask for such a thing since they'll almost certainly insist on their own valuation survey anyway.

I agree with the above in every respect. I have carried out work to five listed buildings, all with Listed Building Consent, and I've never been required to have the works signed off by anyone. The CO has sometimes popped in for an informal look during works, but nothing more.

One or two aspects of some of my work have also required Building Regs consent, and have been subject to a specified inspection regime.

But it's up to your solicitor to chase the vendors solicitor on such matters. And, as FF says, if the building society's valuation surveyor is happy, that should surely cover the matter.