Hi there, can anybody provide some advise on whether there are likely to be any insurance issues relating to existing unlawful structures on a property that is intended to be rented out.
The property that I am considering purchasing consists of an illegal garage and some verandahs around the house. I can accept the risk if pursued by the Local Council (and have no problem with removing the structures, if required by LC) but my main concern is whether this would void my insurance cover if the structures were to remain.
The vendors have pointed out this matter, and they do not wish to gain the required approvals, therfore the property is to be sold as is.
Any advice on this matter is greatly appreciated.
Thanks in advance
Hi Sean S,
as with most unapproved structures, they are built without having been certified by a qualified certifier or building inspector and therfore not signed of as being built to Building regulations and standards.
In saying that, if the structure collapsed or ripped apart from a storm and damaged other property or injured a person, you would have a very tough time proving to the insurance company that your unappreved structure was not to at fault, unless you stipulated on the insurance policy that there was unapproved structures to be covered. This is quite a concern, particurly if the stuctures look bodgy built or in need of repair to start with.
But first check if thestructures actually needed approval in the first place, but the structure you mention, this is unlikely.Of course, this does give you bargaining power to buy at a better price. Consider what it would cost you to get the structures approved and deduct that of your offer, making sure the agent relays the reason to the vendors for your lower offer.
food for thought, I hope it helps
Peter
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