Information on purchasing a house without building codes: A guide for potential homebuyers considering properties not compliant with building regulations
Buying a House Without Building Regulations Approval: Risks and Remedies
Buying a house without the necessary building regulations approval can come with significant consequences, both at the time of purchase and during ownership. Here's what you need to know.
Firstly, it's important to understand that indemnity policies, while they can offer financial coverage for the consequences of enforcement action, cannot prevent the action itself. Non-compliance with building regulations can lead to fines, potential forced demolition, difficulty selling the property, insurance issues, liability risks, and more.
Fines and penalties imposed by local authorities for non-compliance can occur immediately or upon discovery of unapproved work. Stop-work orders or forced demolition of unpermitted additions or structures can lead to financial loss if costly work must be undone. Difficulty reselling the property is another concern, as many buyers avoid homes with unpermitted work due to the risks involved. Lack of approved plans can decrease market value and complicate transactions.
Insurance issues, including potential denial of coverage or claims related to unapproved structures or alterations, are also a risk. Liability risks for injuries, fires, or structural failures in areas not approved by building authorities can expose the owner to legal and financial responsibility.
Requiring retrospective approval, which involves time-consuming, costly inspections, preparation of as-built plans by qualified professionals, and municipal review, is another hurdle. Approval is discretionary and not guaranteed, and in some jurisdictions, failure to comply with building regulations is unlawful and may involve enforcement notices or orders, increasing legal exposure.
However, there are ways to mitigate these risks. If building regulations consent is missing, taking out indemnity insurance provides cover. Approaching the local authority for retrospective approval makes indemnifying against the breach impossible and could cause delays and expenses. Instead, getting the work checked by a qualified individual or company can provide comfort that a structure/appliance is safe, potentially without approaching the council and invalidating any indemnity policy.
When selling a home with work done without building regulations approval, it's important to pass on any indemnity policy to the new buyer, ensuring the policy limit covers any increase in value to the property. If building regulations approval is missing during the conveyancing process, calling in qualified individuals or companies to check the work can enable renegotiation of the purchase price according to what remedial work might cost.
Remember, the building regulations ensure a home is safe, comfortable, and energy-efficient, covering both new buildings and extensions and alterations to existing homes. Buying a home without building regulations approval could potentially lead to savings, but the risks involved should not be underestimated. It's always best to seek professional advice and regularize unapproved work promptly to avoid potential problems down the line.
[1] Building Regulations Explained [2] What are the consequences of carrying out work without building regulations approval? [3] Buying a house with building work that doesn't have approval
[1] Proper understanding of building regulations is crucial, as they ensure the safety, comfort, and energy efficiency of a home, encompassing new constructions, extensions, and alterations.
[2] Non-compliance with building regulations can lead to financial penalties, potential forced demolition, difficulties in selling the property, insurance issues, liability risks, and more.
[3] Indemnity policies can provide financial coverage for the consequences of enforcement action but cannot prevent the action itself.
[4] The installation of extensions like loft conversions, kitchen or bathroom remodeling, or even roof modifications should follow building regulations for safety and energy efficiency.
[5] Planning for a home project without considering building regulations could lead to costly revisions, delays, and potential legal complications.
[6] Investing in the home with design and finance decisions should be guided by the important aspect of building regulations compliance for the property's longer-term value and saleability.
[7] Proper insulation, heating, windows, and appliances considered under building regulations will help maintain a comfortable living environment and save on energy costs.
[8] Seeking the advice of professionals will help ensure that the building work is compliant with regulations, mitigating risks and potential problems in the future.
[9] To minimize the risks associated with buying a house without building regulations approval, obtaining retrospective approval, indemnity insurance, or hiring qualified individuals to check the work can provide security and peace of mind for homeowners.
