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Some lawyers and lenders are OK with this, others not.
If I was buying a house that had structural alterations with no building regs I wouldn't be worried about insuring against the council making a fuss, I'd be worried that the work wasn't done properly. I would want an engineer to inspect the work, which would involved smashing things about to see what sort of metal had been put in.
Hefty
FWIW the house we got fucked over on had building work like that (chimney breasts removed) and there were no building regs. Our solicitor suggested either we or the sellers could get indemnity insurance for a grand total of £100 that would allow us to sell the house - not sure if that is an option.