đĄ Extensions, Loft Conversions & Hidden Selling Pitfalls â What You Need to Know! â ď¸
Many homeowners make improvements to their propertyâwhether itâs an extension, loft conversion, orangery, or garage conversionâwithout realising the potential legal and financial consequences when it comes time to sell.
At Keystone, we frequently encounter delays and complications caused by missing planning permission or building regulation compliance certificates. Hereâs what you need to know and how it could affect your sale.
Planning Permission vs. Building Regulations â Whatâs the Difference?
Many people confuse planning permission and building regulations, but they are separate legal requirements:
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Planning Permission â Determines whether youâre allowed to build something based on local planning policies (e.g., impact on neighbours, aesthetics, environmental concerns). Some works fall under permitted development, meaning formal permission isnât required.
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Building Regulations Compliance â Ensures the work meets safety, structural integrity, fire regulations, energy efficiency, and other essential legal standards. Even if planning permission isnât needed, a Building Regulations Compliance Certificate is usually required for major alterations.
đ Key point: Even if an extension or conversion was built years ago, missing building regulation approval can cause problems when sellingâespecially with mortgage lenders and cautious buyers.
What Happens When Thereâs No Building Regulations Approval?
When selling a property, buyers (and more importantly, their mortgage lenders) will ask for proof that any structural work meets legal safety standards. If this canât be provided, it can lead to:
â Lenders refusing mortgages â Some banks wonât lend against properties with unregulated work, meaning the buyer may struggle to secure finance.
â Buyers pulling out â Buyers may worry about safety risks, future problems, or difficulty selling in the future.
â Expensive delays â Sales can be delayed while the seller tries to obtain retrospective approval or negotiate indemnity insurance.
Can an Indemnity Policy Solve the Problem?
In some cases, homeowners can take out an indemnity insurance policy, which protects the buyer (and sometimes their lender) against enforcement action from the local council. However, this comes with limitations:
â ď¸ Indemnity insurance is NOT a guarantee of safety or compliance â It simply protects against legal enforcement, not structural defects.
â ď¸ Some mortgage lenders wonât accept indemnity policies â Especially if the missing approval relates to serious safety concerns (e.g., fire regulations in a loft conversion).
â ď¸ The policy is invalid if the council is informed â If the seller has already contacted the local authority for retrospective approval, indemnity insurance is no longer an option.
What Can Be Done if Approval is Missing?
If building regulation approval wasnât obtained at the time of construction, sellers have two main options:
1ď¸âŁ Retrospective Building Control Approval (Regularisation Certificate)
⢠If the work was carried out after 1985, the local authority may issue a Regularisation Certificate, confirming the work now meets modern building standards.
⢠This usually involves an inspection (which may require uncovering parts of the work, such as removing walls or ceilings to check insulation, wiring, or foundations).
⢠Downside: If the work isnât up to standard, costly remedial work may be required.
2ď¸âŁ Selling Without Approval (Buyerâs Choice)
⢠Some buyers may accept an indemnity policy, but this depends on their lender and legal advice.
⢠In some cases, a price reduction or seller contribution to future compliance costs may be negotiated.
Our Advice to Homeowners
đš Before selling, check you have the correct paperwork â especially for extensions, loft conversions, and structural changes.
đš If documents are missing, donât wait until a sale is agreed â speak to an estate agent, solicitor, or building control expert early to explore your options.
đš Be upfront with buyers â Surprises cause delays and uncertainty, which can make buyers walk away.
At Keystone, weâve successfully helped sellers navigate these issues, whether through securing retrospective approval, negotiating with buyers, or ensuring all options are explored early in the process. If youâre thinking of selling and have made alterations to your home, we can guide you through the process to avoid unnecessary delays.
đŠ Get in touch today if youâre unsure about your propertyâs compliance! 01244 836636ďťż
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