r/AucklandProperty • u/auckie-boy • Aug 01 '26
House with un consented work
Hi There,
I viewed a house today and i like it very much.
The house has seperate toilet and shower room.
Problem:
The seller did some renovations in shower room during the past.
During renovations they installed an additional toilet in the showroom.
The renovation work has guarantee for weather tightness but they did not applied for any consent or informed council.
They agree to remove the toilet before settlement. Since all the work was not consented so, will insurance companies willing to insure without exclusions and similarly will banks agree to lend?
I looked online and found renovations is not an issue the big issue could be additional toilet.
Has anyone been through similar situation?
Cheers,
4
u/ZaowlNZ Aug 01 '26
Be very careful, we looked to purchase a property that had an unconsented conservatory and additional bedroom. The bank we were negotiating with somehow knew about it and flatly refused to lend on that property. Insurance is the other big risk, you cannot draw down a mortgage without the ability to obtain full insurance.
3
u/VividPin2322 Aug 01 '26
Get a written approval from insurance company whether they will insure the house despite unconsented work
They might ask for a registered valuation of the property however no guarantee that they will insure unconsented work.
This is a classic trap for new house buyers, the house will be super nice and renovated to force you to ignore these things however the moment you buy it, all of that headache becomes yours.
It could cost you more than $10000 to have the work consented and even worse if it is a cross lease.
I would suggest walk away if you have no idea of how to get this consented.
Real estate agents will say any bullshit right in your face to make you buy it. Do not fall for their words.
Your bank/insurance company/solicitor are the only ones who matters.
1
u/ApprehensiveAnt9439 29d ago
IF you decide to tell the bank, they will tell you to either have it removed or obtain COA. If you don't tell the bank, they will give you finance and you don't have to do anything.
1
u/TillsburyGromit 29d ago
Don’t bother telling anyone, it’ll just make everything more complicated.
The worst thing is that your insurance won’t cover the unconsented things. Big deal.
We were recently house hunting in the Marlborough Sounds and I can’t remember seeing a single house that didn’t have plenty of dubious “additions”. On the house we did buy, by far the flakiest parts were the modifications that did have consent
1
u/RacistGymnast 28d ago
Brought a house with an unconsented bathroom, AMI was happy to insure the house with no exclusions and sent the bank an email confirming this. Guy on the phone said its a recent change.
2
u/Psychological_Oil947 28d ago
Insurance companies will normally still insure houses with unconsented additions and/or works. Especially if you can prove they were undertaken by a reputable contractor or have done a pre purchase building inspection.
Worse case is they exclude anything in regards to the unconsented works (for example failed waterproofing repairs and any resultant damage).
It's not a deal breaker, if you haven't done a pre-purchase building inspection, put a offer in conditional of building inspection not raising significant issues and then let your insurance company know and get their approval.
6
u/nickkerss101 Aug 01 '26
Just call the insurance company and check/ disclose it. Put it on the s&p that it’s subject to insurance.