Accept indemnity for a loft conversion or insist on a full inspection?

[Hedgemonkey]

We have had an offer accepted on a cottage we want to buy. It had a kitchen extension and a loft conversion done around 10 years ago.

Our surveyor doubted whether the loft conversion had building regulations, and has valued the property at some �25K less than we've agreed to pay on the basis that it has 2 bedrooms, a study and a loft, as opposed to 3 bedrooms (including the loft room as one of these) and a study.

We contacted the local council who seem to think that whilst both the kitchen and the loft had planning permission, only the kitchen was inspected after the work was completed.

The vendor claims the loft is a fully functioning bedroom.

We have contacted the builder who states that he thought it was only intended to be an office and storage space.

The vendor has contacted the council in order to have the loft room given the thumbs up in terms of it being what it is being advertised as. Sadly, the council are not too quick at responding so the vendor has offered to take out an indemnity policy against the loft conversion.

Our concern is that whilst this may cover us when we come to sell the cottage, it doesn't mean that we can just use the loft as it claims to be, if it was not built for that purpose.

Should we insist on the council inspecting the loft? We don't want to lose the property by pushing the vendor too hard. Or should we accept the indemnity policy? If the council say it doesn't meet building regs then should we go with our surveyors lower valuation and risk the vendor not selling to us in the hope that the next people who come along won't look as closely?

We're concerned that the vendor is just looking for the cheap and easy solution rather than risking having their property devalued.

Any thoughts / suggestions would be greatly appreciated.

[buildersmate]

It�s as well your surveyor found this issue now, because it makes it your seller's problem, rather than yours once you've acquired the property. Whilst understanding your desire not to lose a dream house, don't be blinded by what are serious deficiencies in the way this extension was done.
As I guess you know, Planning Permission and Building Regs are two different issues and it sounds like the current owner pulled the wool over Building Control regarding the loft conversion. Without Building Regulations approval for this conversion, this cottage can only be described as having non-habitable space in the loft, which means it can't be counted as a bedroom. This is why the surveyor is (correctly) valuing it lower. Building Regs are there for a purpose - to set minimum standards of construction etc.
Regarding loft conversions, the main issues are thermal insulation, whether the joists are appropriate for the extra loads of a habitable room up there, and (most critically in my opinion) whether the cottage meets fire regulations. Regarding this third one, if the floor levels of the loft conversion are more than 4m above the ground level outside, the construction must be such that 1) there is an opening window of sufficient size and position such that a person could escape through in the event of fire 2) all the doors adjoining the route from this loft to the ground floor (i.e. landing and hall) MUST be fire doors 3) 30mins fire protection must be provided between the rooms on the first floor and the loft space - the usual way to do this is by 2 layers of plasterboard on the ceiling, not one.
Now, you say this is a cottage - that may mean the ceilings are lower and the loft may be less than 4m from the ground. I suggest you go back to them and say �show me how this cottage meets fire regs�.

[buildersmate]

Part 2

They will either say �its less than 4m from loft floor to the ground so it doesn�t apply� or they will show you fire doors, or they will say �don�t you what you are talking about�. Gotcha! � you must have lied to Building Control.
The second part of your post concerns what the vendor may be able to do about it. If he knows about these Regs, he will know how expensive it would be the make the building comply retrospectively. That�s probably why he is proposing an Indemnity Policy. However the trouble here is that he has probably compromised himself by talking to Building Control about it. See this previous post in AnswerBank which says the same thing.
http://www.theanswerbank.co.uk/Business-and-Fi nance/Question219721.html

I suggest you go back to my first sentence. You�ve found a dream house but PROBABLY has serious difficiency, meaning that you should regard it as having one fewer bedrooms and value it in your mind accordingly. You are not committing any criminal offence by using it as a bedroom � but when you come to sell it, your buyer will go through this same process - and �devalue� it.

[buildersmate]

Checked the Regs (part B) - its 4.5m above ground level - not 4.0m - sorry about that. Most houses of three storeys are higher than 4.5m but some cottages will be less.

[sense4all]

I have a loft conversion that was passed as suitable for permanant habitation I have special fire doors and fire resistant plasterboard on the short walls and even the eaves acess panels - without these things it is an occasional use only room. I would reduce my offer on the property unless they can provide definate proof.