Attic conversion planning issue

superblu

I am in the process of buying a house. It has come to light that the attic conversion and the stairs up to the attic do not comply with building regulations. Realistically I was never going to use the conversion for anything other than storage and this development does not make me any less inclined to purchase. My fear is that the bank may pull the plug on my mortgage approval. Can anybody advise if this may be the case??

DOCARCH

What is the house being sold as...is it a say, '3 bedroom house with attic conversion'...or...is the space in the attic being sold as an additional bedroom?

Rob Thomas

It could cause a problem if it's brought to their attention prior to completion of the sale. While it may not be an issue for you, the Bank's security in the event of mortgage default is the house and anything which might negatively affect the future saleability of the property is going to be of interest to them.

It would really depend on what the cost might be to bring it up to standard or reverse the Non-conforming work which has been done. Your Bank may be happy to overlook the issue if it's relatively minor in respect of the overall transaction.

How did you find out about the issue? Was it as a result of a survey which will be provided to the Bank?

Gumbo

superblu wrote: »

I am in the process of buying a house. It has come to light that the attic conversion and the stairs up to the attic do not comply with building regulations. Realistically I was never going to use the conversion for anything other than storage and this development does not make me any less inclined to purchase. My fear is that the bank may pull the plug on my mortgage approval. Can anybody advise if this may be the case??

2 ways this could go, if the seller is listing it as a bedroom, it doesnt comply so it cannot be a bedroom.

But if its a store room, then thestairs may not meet Part K of the building regulations for habitable use, but the stairs may be ok for access to a store which is used privately by that house ie. its not a public stairs.

You may also want to check for compliance with Part A, Part B of the regulations among others.

Was the structure supervised by an engineer to confirm the increased loading is satisfactory on the existing structure, was adequate tri-angulation provided for in the roof? was escape routes provided for if there was somebody in the attic and a fire broke out at kitchen level etc

superblu

Thats part of the problem. It was never really advertised as anything. I already live in the house paying rent. The person that owned it came to me and offered it for what I thought was a fair price. I went to the bank and asked for a mortgage based on 2 bedroom with an attic conversion and I got mortgage approval on these terms. My fear is that if I go back to the bank and tell them that the stairs and attic are non compliant they will pull out. Ironically enough I found out about this because the seller sent a civil engineer in to have a look at the place.

DOCARCH

superblu wrote: »

...2 bedroom with an attic conversion and I got mortgage approval on these terms.

I think that's a fair statement of exactly what it is?

If you went to the bank and got mortgage approval for the house being 3 bedroom...but...it then turned out that in fact it is 2 bedroom with, in essence, a non compliant third Bedroom, then I think the bank my have cause to withdraw the mortgage offer.

superblu

I hope so. It is Rob Thomas point above that concerns me. I am just worried that if there is any question of any part of the house not complying with building regulations that the bank may take the view that should I default for whatever reason that this issue may impact on the resale value of the house and in turn their ability to recover the money they lent me.

Charlie-Bravo

The vendor will need to provide sign-off with building regulations and exempt development aspect for planning. Your solicitor will need this as part of the conveyance. The bank need your solicitor to check the title and all documentation. Make sure your solicitor is good at what they do!

Rob Thomas

Your solicitor will act in your best interests and in most cases they would insist that the seller to address any identified issues prior to sale completion (eg. Getting retention PP for a garage etc) But in the current market this can be a concern as small amounts can mean an aborted sale in some cases.

The solicitor is obliged to make sure that the Banks mortgage is as clean as it should be and that they can realise their security if they need to so if they are aware of this issue they are going to advise the Bank.


The Valuation report will have informed the Bank that it's a 2 bed with a storage conversion so I wouldn't worry about misleading them on that score. They lent the money to you so they are satisfied with you as a borrower.

At the end of the day, this kind of thing is what you are paying your solicitor for and if they think this is going to be a problem for the Bank, let them deal with it with the seller in getting it resolved. You might not be too worried about it yourself- you have said you are unconcerned - maybe it's not that big a deal to bring it up to spec based on storage space regulations.

You are as well to make sure everything is right..this is a major purchase and you also need to think about insurance concerns etc if this was a loophole for your company to get out of paying out in a future claim etc. you just never know what could happen.

Take whatever advise your solicitor gives you.

Congrats on the purchase and good luck.

Mutley2009

superblu wrote: »

I hope so. It is Rob Thomas point above that concerns me. I am just worried that if there is any question of any part of the house not complying with building regulations that the bank may take the view that should I default for whatever reason that this issue may impact on the resale value of the house and in turn their ability to recover the money they lent me.

Hi Superblu, I am in an almost identical situation as you describe above, just wondering what was the outcome?

superblu

The seller actually ended up pulling out in the end so the issue never actually materialised. I ended up buying the house 2 doors down and doing a complete renovation on that