When selling a property, it is important to provide as many original guarantee’s as possible including planning permissions, building consents, installation certificates and anything that requires a professional and ‘competent’ person to carry out the work’.
In many cases, we often come across situations where a client may not have kept the original document meaning there is additional expenses to be incurred. The commonest examples tend to be Boiler Installation Certificates and FENSA Certificates for Windows.
In regards to boiler installation certificates, it became compulsory to register the installation with the local authority from the 1st April 2005. Between the period of 1st April 2005 and 1st April 2009, the body awarding the building compliance certificate was ‘CORGI’. After 1st April 2009, this changed to ‘Gas Safe’ and these are the body that provide the certificates. Once these have been issued, the local authority will register this against the records for the property and it will therefore appear on the Purchasers local search. Gas Safe and CORGI are usually able to issue a duplicate certificate for a fee payable by telephone or online.
The reason the above is require is mainly due to the special conditions a lender has for a mortgage offer and also because the works should have been carried out by a competent person in any event. If the purchaser has a lender, the Conveyancer is usually under an obligation to obtain the compliance certificates or protect the lenders security by way of indemnity insurance which will normally be paid for by the Seller. The majority of lenders are now a part of the Council of Mortgage Lenders which sets out the terms all CML members abide by. Section 9.1 of the CML Handbook states the following:
9.1 You must effect an indemnity insurance policy whenever the Lenders’ Handbook identifies that this is an acceptable or required course to us to ensure that the property has a good and marketable title at completion.
Most lenders requirements differ in this respect however the usual answer is that indemnity insurance is required in the absence of a building completion certificate. The indemnity will protect the Lender and the purchaser against any loss in value to the property.
The same principle will apply to other compliance certificates such as those previously mentioned as well as NHBC Certificates for new build properties, and HETAS Certificates for wood burners.
It is therefore advisable to keep aside any original documentation that you have received when carrying out any works to the property. It is also imperative to make sure you obtain the necessary permissions required to undertake certain works.
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