Building indemnity insurance fo

[evedawn]

Hi I'm panicking a bit .. (it's in my nature lol) we have recently sold our house and are hoping to complete within next few days. However buyers solicitor has requested docs stating the changes to lOft have passed blg regs. At somr stage (in the past 126 years ... It couldhave been anytime)some downward supporting joists have been removed and replaced with floor supports (I don't know the technical term) we have never had a problem in the 9 years we've lived here and a builder friend has looked and says it is as sound as can be. There was no survey of the loft when we bought it 9 yrs ago.0aThe loft is accessed via a ladder and it is boarded and has electrical points etc. it hasbeen used as an unofficial computer room and to store thingszm

.but we did not ever say it was a loft conversion as it simply is not. The buyer incidentally seems fine with buying this and is happy with this but her solicitor is not!! Our solicitor mentions indemnity insurance. What is this? I am worried the sale will fall through because of this.

[Zacs-Master]

eve, similar questions have been asked in the past here's one where, as usual, Buildersmate gives excellent advice:

http://www.theanswerb.../Question1156488.html

[factor-fiction]

It was actually TheBuilder who gave the excellent advice. Indemnity insurance is not too expensive

[themas]

The solicitor will only know about this because the buyer's surveyor picked it up as an issue when the inspection was done. It is very likely the surveyor is just covering himself because he can't tell whether there might be a problem. I'm not clear what was done but if joists supporting the roof were removed without adequate replacement then a problem could arise, although the longer things go on the less likely it becomes.

If you can get indemnity insurance to cover it I would certainly do so rather than risking losing a sale.

[evedawn]

Thanks to u both. Also that link was v informative. I'm more than happy to pay the blasted indemnity insurance just to get this sale through. :(

[evedawn]

Thanks Thomas I've only just seen ur reply. Yes the banks surveyor picked it up. As said we will pay the indemnity if need be but now I have another q: will that mean the bank will need tO re value or re approve the mOrtgage?

[bushbaby_de]

Hi Eve, the indemnity doesn't really have anything to do with the mortgage at this stage. If you're far enough advanced to be nearing completion then the bank clearly weren't concerned with what the survey picked up - if they were worried they would either have not offered the mortgage or would have put conditions on it. If its only a boarded loft rather than an extra habitable room it doesn't really affect the value of the property, which is all the mortgage company care about. I suspect you're nearing exchange rather than completion though because if you've already exchanged then the deal is done and other parties can't insist on extra documents etc now unless the exchange was conditional on them. Indemnity insurance is typically only a hundred pounds or so and would be money well spent if it smooths a sale through.

[evedawn]

Thanks bush baby. This saga is still ongoing but it's a relief tO hear u say that this should not affect mortgage. You are also right to say we are nearing exchange . The buyer wanted to exchange and complete on same day (end of this week) but I think this won't happen because of delays. Your calming advice is v much appreciated.

[The Builder]

Eve, I'm sorry I haven't seen this question before now.
Anyway, the other posters have spelled it all out. Because property is bought on a "buyer beware" basis in law, purchasing solicitors tend to get a tad hysterical. You could easily stand your ground and insist they just get on with it. On the other hand, a simple indemnity insurance would probably work out cheaper than more" lawyer time".

As our resident physician would say ............... "no big deal".
Good luck.

[evedawn]

Builder ur answer as always is so helpful. Kinda calmed me down (a tiny bit anyway) yes I agree that the insurance is easiest way to proceed and we will happily pay this. My worry was because the solicitors have not yet agreed if they will do this. They really do drag their feet!!! Relieved to know it should not affect the buyers mortgage offer. Your are also tight in presuming we are nearing "exchange" I refered to completion as the buyer wants to exchange and complete in one day. Clearly with the delays this is unlikely to happen.

[The Builder]

As with the boiler, Eve .............. the lawyers have to be "seen" to be doing their job. They will push. Eventually it'll come to the wire, and they'll proceed if they've come this far. :o)))

[bushbaby_de]

Eve, I'm glad you're feeling better about it. Only three months ago I bought and sold and had last minute requests from solicitors for contamination indemnity on the selling property and a building indemnity on an unauthorised extension on the buying property (plus chancel insurance, but that's another story!) My sanity was definitely worth the couple of hundred quid it cost! Good luck x

[evedawn]

Buyers solicitor have sent a letter to ours saying along the lines of: referred the roof query to the lenders and the purchaser. Aggghhh this I so frustrating ! We were supposed to exchange and complete in one day TODAY but now we still have the roof and the boiler query!!!

[The Builder]

Eve, I know it's of no consolation, but this is very common. Completion dates come and go like the tide. Very stressful. Just hang in there :o)))

[themas]

One can't help wondering what the hell this has got to do with the solicitor! The survey was done for the lender. If they had any concerns about it they should have raised them themselves. Seems to me the solicitor is just after upping their fee by making unnecessary work for themselves (& p*****g everyone off in the process).

[evedawn]

Hi- an update...still no exchange. Our buyer has agreed to indemnity ins. We gave the insurance in place
But ... The buyers solicitor has now got to check if lender (mortgage from bank) is ok with this! Is this normal? Pls see also my q about commissioning cert Any help advice will be so appreciated!

[chas2008]

dont you just love selling & buying property !! not...
its funny how all the issues seem to surface at the last minute...

[The Builder]

You're right there Chas :o(

Eve, Indemnity insurance is a widely used catch-all for actual, and I'm afraid, notional discrepancies. If the institutions stop accepting them........... then we're all in even more trouble :o(

[chas2008]

dont you think theres an element of upselling involved?
when my ma-in-law recently bought a bungalow they tried to sell her some form of insurance against flooding,the bungalow is at the top of a hill !!!

[bushbaby_de]

I'm actually starting to wonder if Eve's buyers are doing this as a ruse to get the price reduced and blame it on the bank reducing the mortgage value of the property...

[evedawn]

Thanks chas, builder and bush baby. This is causing me alot of worry :( bush baby whilst ur comment of it potentially being a ruse to drop price would make sense I simply don't believe it's the case. Buyer loved everything about the place and seems just as keen as we are to get this all done n dusted! Thanks all ... Keep any advice comments thoughts coming
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