When you're involved in a property transaction—whether buying or selling—one critical aspect that can make or break the deal is compliance with Building Regulations. These regulations ensure that any alterations or extensions to a property meet required safety and structural standards. Ignoring them can lead to significant delays or even cause a sale to fall through. Here’s how you can navigate these challenges effectively, whether you’re on the buying or selling side.
What Are Building Regulations and Building Control?
Building Regulations are standards set by the UK government to ensure that buildings are safe, energy-efficient, and accessible. They cover a wide range of aspects, including structural integrity, fire safety, insulation, and accessibility.
Building Control, on the other hand, is the process of enforcing these standards. It involves inspections by the local authority or an approved inspector, who checks that the work complies with Building Regulations. Building Control will issue a completion certificate when the work meets the required standards.
Common Home Alterations That May Lack Approval
Many homeowners carry out alterations to improve their living space, but not all of these works receive the necessary Building Regulations approval. Whether you’re buying or selling, it’s important to be aware of these common alterations that can cause issues:
Loft Conversions
These can add valuable space to a home but must meet strict regulations, particularly around fire safety and structural integrity.
Basement Conversions
Adding living space below ground level involves complex structural changes and must adhere to regulations related to damp proofing, insulation, emergency egress, and fire safety.
Walls Removed
Internal alterations that involve removing or altering load-bearing walls need to be carefully managed to maintain the structural integrity of the building.
Chimney Breasts Removed
These are often removed to create more space, but doing so without proper support can compromise the building's structure.
The Conveyancing Perspective
Any unapproved works will likely cause issues to be resolved during the legal process of selling or buying a home. Buyers’ solicitors will typically ask for evidence of Building Regulations approval for any alterations. If this cannot be provided, it may result in delays, requests for further inspections, or even buyers pulling out of the sale.
From my experience, issues relating to Building Regulations compliance cause just as many sales to collapse as the actual physical defects that we find.
If we say to a client that a roof requires replacement, usually, quotes for the works can be obtained, renegotiation can take place and things can keep moving.
However, there is something about the fear of the unknown when it comes to compliance that seems to cause buyers of homes to walk away—whether it’s the potential cost of upgrades, the risk of structural issues, or the impact on property value—that can cause anxiety. Buyers may feel uneasy about unapproved alterations, especially if these issues are discovered later in the sales process.
Understanding your own risk tolerance and ensuring you’re informed about the potential implications can help you make the right decision, whether you're buying or selling.
For sellers, this means it’s crucial to have your paperwork in order to avoid disruptions. For buyers, it’s important to understand the implications of missing approvals and how it might affect your purchase.
Options for Dealing with Missing Building Regulations Approval
If a property has undergone alterations without Building Regulations approval, buyers and sellers of homes have two main options to progress the conveyancing process: obtaining a regularisation certificate or offering/accepting an indemnity policy. Here's how each option works for both parties.
1. Regularisation: Get the Work Regularised
Regularisation involves the local authority inspecting the unapproved work to confirm whether it complies with Building Regulations. If it does, a regularisation certificate will be issued, certifying that the work meets the required standards.
For Sellers: Taking responsibility for obtaining a regularisation certificate before or during the sales process can prevent delays and give buyers peace of mind.
Positives
The certificate ensures that the property is fully compliant, reassuring buyers and mortgage lenders.
It strengthens your negotiating power by removing one of the biggest concerns that could be raised by buyers.
Downsides
The process can be time-consuming, particularly if the work doesn’t meet the required standards and needs upgrading before the certificate can be issued.
The local authority may ask for parts of the works to be opened up for inspection as part of the regularisation process
The local authority may require additional paperwork such as test and commissioning certificates for services or installations that come within Building Regulation control
Costly repairs or improvements may be necessary to bring the alterations up to current regulations.
For Buyers: Asking the seller to obtain a regularisation certificate ensures that you are purchasing a property where all work is compliant with Building Regulations, avoiding future issues with safety, quality, or mortgage lending.
Positives
You have official assurance that the alterations meet Building Regulations standards, reducing future risks.
It prevents valuation issues with mortgage lenders, as the property will be fully compliant.
Downsides
The sale could be delayed while the certificate is obtained, especially if upgrades are required before the work can be approved.
Once the regularisation process has been initiated, it becomes impossible to obtain an indemnity policy for that work.
2. Indemnity Policy: Insure Against Enforcement
An indemnity policy insures the buyer against enforcement action from the local authority for the unapproved work. This option often moves the sale forward more quickly, but it comes with some potential risks, particularly for buyers. Buyers may also request further investigations before agreeing to the policy.
For Sellers: Offering an indemnity policy can speed up the sale and provide some reassurance to buyers without the need for regularisation.
Positives
It allows the sale to proceed without the time-consuming process of regularisation or making upgrades to the property.
It may be a simpler and quicker solution for both parties, especially if the buyer is willing to proceed with the policy.
Downsides
Buyers may still request further investigations to assess the risks for their own consideration.
Where buyers accept the risks and move forward with an indemnity policy and no further investigations, they may try to renegotiate based on having to take on a degree of risk.
For Buyers: Accepting an indemnity policy allows you to move forward with the purchase, protected against the risk of enforcement. However, it’s crucial to consider that the policies only cover the enforcement risk, not the quality or safety of the work itself. Therefore, decisions need to be made as to whether additional investigations should also be done to evaluate the safety and compliance of the alterations for your peace of mind.
Positives
Indemnity policies provide a faster route to completing the sale, while protecting you from local authority enforcement for the unapproved work.
You have the flexibility to negotiate a lower purchase price to account for the risk, depending on the extent of the work.
Downsides
The indemnity policy only protects against enforcement, not the potential costs of bringing the work up to standard. You may be left facing expensive repairs or upgrades if the work is found to be non-compliant.
Renegotiation may still be required and advised, especially if you are considering taking on the risk of proceeding without further investigations.
Be Proactive to Avoid Issues Later
Whether you're buying or selling a property, being proactive about potential Building Regulations issues can help avoid delays and ensure a smoother transaction. Here’s how both buyers and sellers can take the right steps:
For Buyers: Get a Detailed Home Survey Before Exchanging Contracts
Buyers should always obtain a comprehensive Home Survey before exchanging contracts. This is crucial because many unapproved alterations might not be obvious, and they can have serious consequences down the line. A thorough survey will flag up any potential alterations, which you can then raise with your conveyancer for further investigation.
It's important to remember that conveyancers rarely get the chance to inspect the properties they advise on. Instead, they rely on being informed about alterations either by the seller’s legal team or by their clients—who may mention changes they’ve noticed or seen in floor plans and photos. As surveyors, we can essentially act as the "eyes and ears" of your legal team, identifying any alterations during our inspection and flagging them up in our reports. This allows your conveyancer to take appropriate action and check whether the necessary approvals are in place, giving you peace of mind before you proceed.
For Sellers: Consider Up-Front Vendor Surveys
If you’re selling your home, consider arranging an up-front vendor survey. These surveys are becoming increasingly popular because they can spot potential issues, including unapproved alterations, before you even market your property. By identifying and resolving these issues early, you’ll be in a stronger position when buyers and their legal advisers conduct their due diligence, reducing the risk of delays or renegotiations later in the process.
An up-front vendor survey can provide reassurance to buyers, showing that the property is in good order and helping the sale move forward with fewer obstacles.
Getting expert advice early can help keep your transaction on track. Contact us to arrange your detailed Building Survey, Home Survey or up-front Vendor Survey, and ensure you're making informed, confident decisions about your property.
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