Your buyer’s solicitor has found a loft conversion, extension or knocked-through wall with no completion certificate, and the sale has stalled. An indemnity policy for building regs is usually the quickest fix: a one-off premium, often a few hundred pounds, that protects the buyer and their lender if the council ever takes action over the missing paperwork.
An indemnity policy does not fix the work or replace a certificate. It insures the buyer and lender against the financial consequences if the council takes enforcement action, and it only works if you leave the council out of it. Used properly, it can save a sale. Used badly, it can make things worse.
What an indemnity policy actually is
It is a single-premium insurance policy that stays with the property. If the council later decides that work done without approval breaks the building regulations, the insurer pays for the cost of dealing with it, within the policy limit, usually tied to the value of the property or the work.
Two points trip people up:
It covers enforcement, not poor workmanship. If the beam is undersized or the fire door is missing, the policy does not pay to put it right in the normal sense of repair.
It protects the buyer and the lender, not you. The buyer’s lender usually asks for it so that their security is not at risk. You pay for it, but the cover benefits the next owner.
When a policy is the right route
An indemnity policy tends to suit the following situation: the work was done some years ago, the property looks sound, a surveyor or buyer has no concerns about the structure, and the only gap is the paperwork. A common case is a loft conversion, a rear extension or a replacement boiler where the certificate was never issued or has been lost.
It is a poor fit where there are real safety concerns, such as inadequate fire escape from a loft room, or structural alterations with no engineer’s calculations. In that case the safer and often cheaper route is to put the work right.
How much does an indemnity policy cost?
For most homes the premium is a one-off payment of roughly £100 to £400, depending on the value of the property and the age and type of the work. A loft conversion in a high-value house will sit at the top of that range. A modest internal alteration will sit at the bottom.
Compare that with the alternatives. A regularisation certificate means paying the council’s fee, possibly opening up the work for inspection and fixing anything that fails. That can run to thousands of pounds, plus delay.
What happens if you contact the council first
My view: the single biggest mistake sellers make is calling the council “just to check” before arranging the policy. Do not. Most indemnity policies are only valid if the local authority has not been told about the missing certificate. Once the council knows, the insurer will usually refuse cover, because the risk of enforcement is no longer hypothetical.
That means the order matters. Speak to your solicitor, agree that a policy is acceptable to the buyer and their lender, and take out the policy before anyone writes to the council. Your solicitor should handle that conversation.
Indemnity policy or regularisation certificate?
Indemnity policy
It is cheap, fast and keeps the sale moving. It works when the buyer and lender are happy to accept it. It leaves the underlying question, whether the work actually complies, unanswered.
Regularisation certificate
You apply to the council, and an inspector examines the work. If it passes, you get formal evidence that it meets the regulations. It costs more, takes longer, and may reveal faults you must fix. For work you plan to keep living with, it is the more thorough answer.
If you are staying in the house, the second route is usually better, because it tells you whether the work is safe. If you are selling and the work looks sound, the first usually does the job.
What the buyer’s solicitor will ask for
Expect a short list of questions. When was the work done, and by whom? Was a building notice or full plans application ever made? Is there any paperwork at all, such as an installer invoice, an engineer’s calculation or photographs taken during the build? Has the council ever raised a complaint? Answer plainly and consistently, because the insurer will ask the same things. If the work is more than a decade old, the picture is usually calmer, since councils rarely pursue old, sound work, but your solicitor, not a search engine, should judge that for your sale.
How to get a policy in place
Tell your solicitor about the missing certificate as early as possible, ideally before you list the house.
Check what the buyer’s lender will accept. Some lenders insist on particular wording.
Gather what you have. Plans, invoices, installer paperwork, photographs of the work, the date it was done and the name of the builder all help the insurer.
Arrange the policy through your solicitor or a specialist provider before contacting the council.
Pass the policy to the buyer’s solicitor and make sure it is transferable to the new owner.
What to do in the next 30 minutes
List every alteration made to your home that you know of: loft, extension, wall removal, conservatory, new windows, boiler, rewiring.
For each one, find the completion certificate, FENSA or competent person certificate, or note that it is missing.
Search your email and old folders for installer paperwork and photographs.
Ask your solicitor, in writing, how they would handle any missing certificate before you contact the council.
Scan whatever you do find and keep it in one place.
If you want that paperwork in one tidy place for the next buyer, open your free Home+ document vault, and store certificates, policies and guarantees together so nothing goes missing when you sell.
FAQ
What does an indemnity policy for missing building regs cover? It covers the buyer and their lender against costs if the council takes enforcement action over work done without approval, within the policy limit. It does not cover the cost of ordinary repairs or defective workmanship.
How much is an indemnity policy? Most are a one-off premium of a few hundred pounds, depending on the property value and the type of work. A loft conversion in an expensive house will cost more than a small internal alteration.
Can I contact the council after buying an indemnity policy? Usually not. Most policies become invalid if the council is told about the problem. Check your policy wording and speak to your solicitor before contacting anyone.
Does the policy transfer to the next owner? Most do, and that is part of the point, because the buyer relies on it. Make sure your policy is written to pass to future owners.
Will every lender accept an indemnity policy? No. Many do, but some have their own requirements. Your solicitor can check with the buyer’s lender early.
Is an indemnity policy better than a regularisation certificate? It is cheaper and quicker, but it does not prove the work is safe. A regularisation certificate is more thorough, so it suits owners who are staying put.
