Buying a house with no pp on extension

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Hasty30

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Hi I am currently in the process of buying a house. We have paid our deposit and are waiting on mortgage approval (we already got approval in principle). Our solicitor has come back to us today after receiving the paperwork from the vendors solicitor. There is a two storey extentsion on the house and they never got planning permission . Our solicitor said that this will be a problem for us for getting the mortgage unless the vendor gets retention on this. Does anybody know if this is an easy or difficult thing to get?
 
Depends if the planning officer likes it or not, and if they are due to get a levy from it and if it is built safely.
I wouldn't expect this house sale to go smoothly or quickly.
I would stop everything until you get definitive answers on the extension.
 
Plus a good enough reason to renegotiate the price if you really want to proceed.
 
We are getting it at a really good price. The vendors are looking for a quick sale as they are ready to move. Yes we cannot proceed without the retention permission which the vendor and estate agent are working on. It's a two storey extension to the back of the house. I have no problem regarding the delay am just hoping she receives the retention permission without any problems.
 
We had similar issue with house we bought recently. We phoned the relevant county council to check out their stance on it and were advised that as extension was in place more than 7 years they wouldn't seek to have it removed. The official also stated that retention would be granted if applied for, once it was structurally sound etc. Our solicitor also had an issue with the absence of planning permission so he wrote to the mortgage bank to ask them if they were still willing to lend too us with this issue outstanding. As nerve wrecking for us as we really wanted the house and spent a week worrying. However, bank had no issue with lack of pp and we got mortgage and closed. Probably depends a lot on how long the extension has been present, how well it is built and county councils attitude towards it. The vendors in our case didn't apply for retention but they did supply a recent architects certificate of compliance. Hope this helps!
 
Hasty30 said:
Does anybody know if this is an easy or difficult thing to get?
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I could take anywhere between 3 to 6 months to apply and receive Retention of PP assuming everything is in order.

I would seriously consider asking for a discount on the purchase price.
 
If I was the Banker I would also require a survey of the extension plus architects commentary that PP retention was likely to be granted.
 
Just a few comments.

Extension: in the ideal world the extension is exempt from the need for planning permission and an architect/ engineer should so certify. And it should have been built in accordance with Building Regulations. To be certified.

However, if it was not an exempt development, then it will always be an unauthorised development unless retention permission is subsequently granted. And it should have been built in accordance with Building Regulations. To be certified.

After 7 years, the Local Authority cannot require it to be pulled down but that does not make it an authorised development. One issue ( and it is uncommon) is that it is not covered by insurance in the event of a catastrophic disaster. Another issue is that in the event of a CPO ( again very uncommon) no value attaches to the unauthorised development.

Food for thought when making a major investment in property.

mf
 
Thanks for all the advice. The proceedings definitely won't go ahead without the retention permission. Our estate agent said it will be no problem to get but it will delay things.
 
Hi Hasty,
just to reiterate that any good solicitor would not allow money to be drawn down without the proper planning etc, as i was in this position a number of years ago,if you were paying cash you could take your chances.


Pat
 
Why would insurers pay out for the destruction of an unauthorised development?

mf
 
Hasty,
I find myself in a very similar situation to yourself (as per your post) in that I have signed contracts on a house, only to find that there is a problem with the planning permission, and I am wondering how you got on.

The house in question has a side extension which did have planning permission granted in 2000, but the vendor ran out of money and only completed a single story extension with dorma room above 'vs' the double story granted.

Even though he built less than was granted it breaches the planning permission granted.
He (vendor) will need to get retention granted on it for our sale to proceed - which really is not ideal as myself, the wife and two kids have moved out of our home in the understanding we will move in come the end of Feb.
Fat chance of that happening now ! :(

So my question is how did you get on and how long did it take ?

Ta

M
 
Could be the case that its exempt from planning. If it is unauthorised it may not bother you to take it on but if you ever go to sell it, unless it is regularized, the next buyer may not. Basically it could narrow your market a lot if you go to sell it. Just because it is over 7 years there does not guarantee success in a planning application either. I would say either get the current owners to regularize the situation before you commit, or buy it, apply for retention yourself and cross your fingers. If it does go belly up you should not lose your deposit as you paid it in good faith at the time.
 
Thanks Shoestring.

Yea I am talking with my solicitor on Monday about my options.
We really like the house and the current situation we find ourselves in really puts me under pressure to get this sorted.

I will tell the vendor to get it sorted (retention) but may in the end just go ahead with the sale if my solicitor can get an answer from the bank before hand as I really need a fall back . I have a lowish LTV of 65% on this particular property so I am hoping this will help when the bank make the decision to allow me to go ahead with the purchase.

Its just so frustrating finding this out at such a late stage as I had my suspicions that the vendor was holding off on something - i guess this was it.
 
Mixednuts said:
Thanks Shoestring.
I will tell the vendor to get it sorted (retention) but may in the end just go ahead with the sale if my solicitor can get an answer from the bank before hand as I really need a fall back .
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That strikes me as taking on a risk that is unnecessary: what would happen in a worst case scenario where permission is refused and you’re ordered to remove the extension: you’d be happy for this to happen and to pay for the demolition? Very unlikely scenario, I know, but why take the risk? I’d wait until permission was in place before completing the sale, regardless of the bank’s view on it.
 
Retention permission

Vendor should apply for 'retention permission'. Seek professional assistance/ advice - surveyor/ architect will assist scsi dot ie/ riai dot ie or google who is in your area!
 
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