Indemnity Insurance and restropective consent for Kitchen works - how does it work?

[sunshine111]

Hi
over 8 years ago now, i arranged with a builder to move my existing kitchen to one of the bedrooms which was adjacent.

my property is leasehold with managing agents

having read my lease and noting that i was not making any structual changes, ie as not taking down any walls. i went ahead with the works.

just recently it has been brought to my attention that moving the kitchen IS considered structual even though no walls were taken down, and that i did need consent from the freeholder. not only this but that i should have advised the LA because i moved the boiler into the new room and had more wall sockets put in!

i have also been advised by friend that i can take out something called indemnity insurance and that this should cover me should i ever wish to sell. but can i buy indemnity insurance without a solicitor? now i know whats what i want to be back on the right footing again asap.

also do i purchase the indemnity insurance prior to asking for retrospective consent from my freeholder (as this may make them happier about the situation(?)

finally when asking for retrospective consent for the kitchen (which by the way has added value for the freeholders as well) is there normally a charge attached?

anyone out there been in the same or similiar situation or can offer any advice on how to proceed?

Thanks

[sunshine111]

Re: Indemnity Insurance and restropective consent for Kitchen works - how does it wor

Hi, is there anyone that can possibly help with this one? or point me in the right direction on where to find out.

[sunshine111]

Re: Indemnity Insurance and restropective consent for Kitchen works - how does it wor

Hi

is there anyone at all out there that can help me with this or help with a link to where i can get the answers.

Much appreciated

[sunshine111]

Re: Indemnity Insurance and restropective consent for Kitchen works - how does it wor

Hi again

unfortunately, no one was able to get back to me about my query. ive done some digging myself and come up with the following, which may help others with the same or similiar situation:

retrospective consents can cost, and can cost a lot of money dependant on the breach and/or level of work, and the reasonableness of your freeholder
complications and additional cost can arise if retrospective consent is requested whilst also trying to extend your lease and/or trying to sell.
i was still confused as one website said that change of use of room did not require consent, where another one did require consent. however i have referred back to my own lease and will use this as the basis, mine says no alterations without consent - therefore retrospective necessary .

Indemnity insurance. caused me further confusion. however i think i have established that this is a cheaper option, was once considered the last resort, but now quite common place as a quicker and cheaper way of resolving the issue of not having prior consent from a freeholder. cost will be based on the value of the property(?) and level of work done. digging around has established that the majority think that you need a solicitor for this. but talks mainly about this being done during sale and is mainly for the benefit of the purchaser as 'a just in case'. however if undertaking this you must not alert the LA or the freeholder of the building work/breach that took place as this will invalidate the insurance. the indemnity carries on all the time the building is standing.

in my own case i dont have a buyer waiting to take over my home, but i would like to take out the indemnity insurance now anyway should the day come when i do. but im still trying to find out if i can do this and without the need for a solicitor. i understand that if a leaseholder decided that they wanted to sell their property, there is so much paperwork that needs undertaking (which can take months and potentially hold up a sale) does it not make sense to have this in place prior to going on the market?

it would be great if there was someone (anyone) out there that could put me right where i have included the wrong info within this post. im slowly learning and am trying to be proactive in the sharing of information.

[jon1965]

Re: Indemnity Insurance and restropective consent for Kitchen works - how does it wor

Hi sunshine
18 months ago I sold a property that had had some structural work done, the buyer wanted indemnity insurance which my conveyancing solicitor did very easily and cheaply.
I would leave that until sale

[sunshine111]

Re: Indemnity Insurance and restropective consent for Kitchen works - how does it wor

Hi Jon1965

one question - did the freeholder come around to inspect the property before sale? how on earth (if selling) do you manage to keep any changes from the freeholder? do they not look at floorplans when sales are going through?

in any event. i will follow the advice you have given, and not worry about it for now. your advice is very much appreciated.

[jon1965]

Re: Indemnity Insurance and restropective consent for Kitchen works - how does it wor

The property I sold was freehold. However I was a victim of a cowboy builder.

[sunshine111]

Re: Indemnity Insurance and restropective consent for Kitchen works - how does it wor

Just to update, and help assist others in my situation.

not being freehold, my situation is a little more complicated than Jon1965, in that i am answerable to the freeholder. my friend who sold her property last year, (also leasehold) advised that her freeholder attended the property to carry out an inspection and ensure that no unauthorised changes had taken place to the property. my friend hadnt made any changes.

i have consequently spoken with a solicitor who talked about a variation to the deeds, and that any alteration could be included with negoiations if also considering lease extension (all at a cost), but seemed to think that this would be determined by the buyer of the property (and their solicitor) as to whether or not they would be happy to take on the property with the alterations without the freeholders consent, in which case indemnity insurance would be an alternative.

im now trying to determine as to whether or not it is definate that a freeholder or his representative would attend the property to determine whether alterations have taken place, as i still do not understand how indemnity insurance could work if there is a possibility that the freeholder would attend the property once the property was up for sale anyway.

anyone else want to share their own experience?

[Spudtheone]

Re: Indemnity Insurance and restropective consent for Kitchen works - how does it wor

Just to update, and help assist others in my situation.

not being freehold, my situation is a little more complicated than Jon1965, in that i am answerable to the freeholder. my friend who sold her property last year, (also leasehold) advised that her freeholder attended the property to carry out an inspection and ensure that no unauthorised changes had taken place to the property. my friend hadnt made any changes.

i have consequently spoken with a solicitor who talked about a variation to the deeds, and that any alteration could be included with negoiations if also considering lease extension (all at a cost), but seemed to think that this would be determined by the buyer of the property (and their solicitor) as to whether or not they would be happy to take on the property with the alterations without the freeholders consent, in which case indemnity insurance would be an alternative.

im now trying to determine as to whether or not it is definate that a freeholder or his representative would attend the property to determine whether alterations have taken place, as i still do not understand how indemnity insurance could work if there is a possibility that the freeholder would attend the property once the property was up for sale anyway.

anyone else want to share their own experience?

We are trying to buy leasehold flat where alterations may have been done with out permissions. It is causing severe delays. We are considering pulling out. If our seller had got either indemnity or retrospective license we would be in by now! A licence we have been told by our solicitor would be about £600 but bespoke indemnity about £250 to £500. As a buyer I am happy with indemnity because I want to buy the flat with it's present layout. A retrospective licence might cause the landlord to consider it being put back. We will be the third purchasers with the new layout (a large bedroom was partitioned with a stud wall to make two) and the landlord has not made any investigations during the sales even though it was marketed on leading estate agents websites ie hamptons international. I found the architect from 1998 on the web and called him to ask if the flat was intended as a one bedroom (it would be 19feet by 19 feet, huge). He couldn't remember! If I was you I would go for indemnity to pass on when I sell and not worry. The architect I talked to said it is too small for landlords to keep track off in most cases but to have surveyors report if you think you have done something structural. That is a whole different issue. Good luck.