HELP! Problems getting insurance on new home!

purplebiro

Any advice greatly appreciated.

FTBs In the process of buying a victorian end terrace in South Manchester. After problems getting a mortgage because of bad credit which took 3 weeks to resolve, then our mortgage company taking five weeks to process the surveys and reports we had done on the property (GMAC, to name and shame) they have now given us a mortgage offer but with the proviso that we provide evidence that the property can be insured and that the insurers have seen our reports prior to completion.

The house is sound, with only the usual problems you would expect with a house of this age. However, the guy who did our initial mortgage valuation has ticked a box that says that the area (M19 for anyone that knows lovely Levenshulme) is known for subsidence. This coupled with the fact that there are two sapling trees in the back garden (which we're going to have removed anyway and we have a report and a quote recommending that we do so) means that no insurers seem to be willing to touch us with a barge pole.

I have spoken to the original valuer and he confirmed verbally that in his opinion this property does not have subsidence and everyone I'm speaking to seems to be of the same opinion but it seems that once the insurers see that little ticked box they run a mile.

Is there anything we can do? I have just faxed over all of our reports to another mortgage broker who has sent it on to a few specialist insurers but, as you can imagine, having spent over 3 months, a lot of energy and considerable money and all of our posessions being in storage because the process has taken so long so far we've had to move out of our rented accom we are very very worried.

Someone at work has just told me that the current insurers of the property are legally obliged to provide continous cover, so if we contact them they should provide us with insurance, providing nothing has changed on the property since the last policy was taken out by the current owners? Is this true? Does anybody have any experience of how one goes about the process of sorting this out?

Sorry to go on but we are FTBs and this nightmare is really beginning to take its toll on us both. Please help, we're deperate.

Astaroth

I am surprised that you are having a problem getting insurance if the building itself has never had subsidence but the area has (unless of cause it is one of the other buildings in the terrace that has).

Having spoken to one of our underwriters they would need a lot more details.. ie if the surveyor has said the area has had subsidence do they mean the row of houses, the street, the postal code area, what is the cause of the subsidence etc but generally they would insure the property but with a slightly higher premium and an increase in the excess for subsidence from the normal £1000 to £2000 but each case has to be dealt with on an individual basis by a technical underwritter.

purplebiro

Well that seems a lot more hopefull.

I've also posted in the Homebuyers forum and very helpful lady seemed to suggest two things -

either getting the original valuer to write on headed paper a letter to the effect 'given the local area this property shows no significant sign of subsidence or movement' and showing that to potential insurers

or getting a RICS report on it.

sound sensible?

funnyguy

I have always found prudential reasonable concerning subsidence problems in the past...they might be strickter now but if you havent tried them yet .give them a go