For properties that have had planning permission and works completed, why do valuers state that lenders need to check building regulations have been signed off?

Video Transcript

Building regulations sign-off is crucial for ensuring a property meets safety, legal and structural standards, protecting occupants, property owners and property lenders. Building regulations guarantee compliance with local laws, making the property insurable and safeguarding against legal consequences. Building regulations sign-off plays a crucial role in maintaining or increasing the value of a property. When selling a property, prospective buyers and their solicitors will typically request evidence that all construction work was completed in compliance with building regulations. If this certification is missing, it can raise red flags, as unapproved work could pose safety or structural risks or require expensive remediation. Buyers may be hesitant to purchase such properties, and property lenders often refuse to finance properties without proper building regulation approval. This can significantly reduce the pool of potential buyers and lower the property’s market value. In cases where unapproved works exist, sellers may need to obtain retrospective approval or offer price reductions to account for the associated risks and legal complications. Therefore, having building regulations sign-off ensures smooth property transactions and maintains the property’s value.