Survey shows up previous subsidence

SallyCinnamon

Hi All, really grateful for some thoughts on this please and apolgies for the long post. We are purchasing a property and recently got the survey back which gives some details of previous subsidence on the extension to the house which was fixed some years ago (claim settled in 2003).

We're not overly concerned about there being problems in the future with further movement (the survey shows no evidence of any movement since it was fixed) but will be making sure that our solicitor is sent all the relevant documentation etc. My worries are more about getting buildings insurance and whether we will encounter difficulties ourselves when we come to sell at some point in the future.

I'm aware from this site and from calling a couple of places that mainstream insurers won't insure us because of the previous subsidence claim. I've been trying since last Monday to get the vendors (via the EA) to speak to their current insurers (Legal & General) and give permission for them to talk to us about taking over the policy and let us have the policy number. For some reason, they haven't spoken to L&G despite the EA chasing for me. I've been told today that they are on holiday this week and will get on to it on Friday. I'm sure it's just paranoia but I'm really concerned that the premiums are going to be shocking and they are stalling until we don't have any choice but to go through with it.

My first question is whether anyone can offer a ballpark figure on what kind of quote we might get (it's a 3 bed semi in Surrey). We're currently paying £24 per month on buildings and contents for a 3 bed mid terrace in Kent and I know that the new premium is bound to be significantly higher but have no idea what to expect.

The other thing that concerns me is whether when we want to move on in a few years we are likely to have problems selling because of the subsidence and associated insurance issues. Am I just being silly or is it likely to be a big deal? I really don't want to pull out at this stage, but it's a huge amount of money we're spending on the house and I want to go in with my eyes fully open and not be kicking myself in 5 or 10 years time if we can't move because no-one will buy it. The rest of the survey was ok and the things that the surveyor put as requiring action aren't a huge concern or making us want to renegotiate the price.

Really grateful for your thoughts and apologies again for length of post. Thank you.

lincroft1710

Why don't you just contact L and G, say you're buying house, which they insure and would they give you a quote. If they say they won't reinsure this house, you know either to pull out of sale, or get phoning/emailing some non mainstream insurers.

SallyCinnamon

Many thanks, I spoke to them last week and was told I have to go through a particular route as they won't give us a new policy, we can only (potentially) take over the existing policy. I have to call a special line with the policy number once the vendors have called them to give permission to speak to us. That's why we're at a standstill at the moment unfortunately :-(

lincroft1710

I'd start ringing round! They seem to be making a bit of a mountain of this, with special numbers.

SallyCinnamon

Unfortunately it seems that none of the mainstream insurers will offer insurance on a property which has previously had a subsidence claim made, regardless of circumstances.

G_M

Google 'subsidence insurance' and you'll get some specialist companies. There's also a specialist broker .
Prsonally I'd be cautious if you find quotes hard to get or very expensive.

Ladybird20

someone on here posted more or less the same question and he got his insurance from.......Tesco.....he had phoned all the main insurers most said ...NO,,,,,,i will try and find the post in the archive posts....

SallyCinnamon

Thanks G_M and Ladybird, really useful suggestions!

Jonbvn

Check the link out for insuring properties that have suffered subsidence and been repaired.

http://www.subsidencebureau.com/previous_subsidence.htm

SallyCinnamon

Hi all, finally have a quote. Decided to suss out Legal & General first as the specialist firms charge for a survey which is refundable if they don't offer you a premium but obviously non-refundable on the basis of an astronomical quote.

The vendors kept us waiting almost 2 weeks for the info on their policy and ringing L&G themselves, so I didn't get to talk to L&G until this Monday. Just got the quote from them this afternoon after having faxed off the survey etc and it's pretty bad, and more than double what we're paying at the moment for a property of roughly the same size and age :eek:

If we pay for 12 months up front it will cost £641.08, monthly incurs a service charge and would be £56.61 a month... The buildings element is £578.08 so it's pretty horrific. Don't know what to do at the moment, we could afford the hike (just about) but we're already doubling the mortgage (fixed for 5 years though) and paying increased council tax plus unknown childcare costs (don't know where we'll be living when so can't fix anything up for when I return to work yet) so at this rate we won't have anything spare to enjoy ourselves etc.

More than that is the worry that when we want to sell, no-one will want to take out such a heft premium and we'll be stuck. Would a premium that hefty put you off? We really like the house and it suits us, but not a dream home so have to think seriously about whether to proceed (which will leave us homeless in mid / late August :eek:) and lose what we've spent on survey, mortgage arrangement and solicitors. Will that seem like such a big price to pay if we want to move in the future and can't though...?

Really grateful for any opinions, my head is just spinning...