Subsidence and the dead deal

andthatmakesone

I'm currently engaged in a part exchange deal with Barratts, and to cut a long story short - everything that could go wrong, has! 5 months down the line and we still haven't exchanged contracts.

The final (please god) issue has arisen due to subsidence claims against my property by previous owners in the 1980's. 3 claims in total, 2 of which were accepted by the Coal Authority and made good by repairs, 1 which was rejected as the cause was deemed "other than mining subsidence".

The solicitor for Barratts has asked for confirmation from my current buildings insurer that they would continue to insure the property regardless of these claims.

In response, my current insurer has asked for confirmation (through me)from the Coal Authority that they accept responsibility (I have a letter detailing this as above for 2 of the claims - found by my solicitor in my deeds), and that they will accept liability for any future subsidence claims. I do not have any evidence of this latter request, and quite frankly if the Coal Authority would allow themselves to be put in that position then it's open season. They might as well go door to door with a suitcase full of cash asking everyone to help themselves. How on Earth am I supposed to get that kind of assurance?
I've already sent them the Coal Authority letter and they've rejected this as all it says is what has happened in the past - no future commitments.

But wait - there's more:

Because I didn't declare these subsidence claims when applying for the policy (I couldn't even call it an honest mistake as I has no knowledge of them until Barratt's told me), my current insurers have told me that they are cancelling my insurance. Considering buildings insurance is a pre-requisite of having a mortgage, I'm guessing my mortgage provider is going to have some very interesting things to say about this.

To think that by trying to improve my situation (bigger, nicer house), I may have actually made things a whole lot worse. Oh, the irony...

Does anyone have any suggestions how I get myself out of this one?

G_M

Unfortunately you have 2 serious problems, through, it seems, no fault of your own.

Getting insurance yourself and pursuading anyone (Barratts or a n other) to buy.

As a starting point try the subsidence advisory bureau or
subsidence bureau (might be the same...?)

DVardysShadow

Suggest you go to your lender and ask that they assist in getting insurance. Who are they? Just in case anyone knows they might not warm to this.

andthatmakesone

My current lender is Nationwide.

I refuse to believe the property is un-insurable (if it is then god help the rest of the street - we are all connected terraced houses), but I just know that there's going to be a severe premium involved here.

And even after that, Barratt's will most likely be reluctant to take it on (well, not without a substantial drop in asking price anyway). They'll think no-one will take it off their hands.

I only bought the house myself 7 years ago. Don't remember any of these problems back then.

Fire_Fox

I would be going back to my original conveyancing solicitor and/ or surveyor to find out why the subsidence has not come out before now!

jenny74

I agree with Firefox... Your conveyancer at the time you purchased has not done their job properly! They obviously knew about it as there is info with your Deeds. It also puzzles me how this did not come up on the searches when you purchased the property... You should have been sent copies of the searches by your Conyenyancer.

Archlever

I feel sorry for the situation you find yourself in. I agree with th OPs re; looking back at why your conveyancing process did'nt highlight this very important issue. We pulled out of a property purchase a few years ago after we had sight of the Coal mining report, which stated that the property suffered subsidence which was made good by the coal authority.

About your current situation - I am sure there are lenders who will ensure a property with a past history of subsidence. There are several specialist insurers out there, just google. Currently I've heard (though I have no proof) that even mainstream lenders will consider underpinned properties as long as all the paperwork is in order. I certainly had no problem getting insurance with a history of subsidence (though long standing, non progressive and not requiring any remedial action).

Hope you are able to sort things out soon.

andthatmakesone

Thanks for all your comments. I know that this subsidence did not come up in converstaion with my conveyancer at the time, but I can't check the searches as all my paperwork is with my current solicitor trying to get this deal through.

I've asked my insurer if obtaining a structural survey would pacify them (assuming of course that it comes back clean). Waiting for a response on that one. I've already got 2 quotes, both at £293.75, just in case.

The most galling aspect of this is that I live in an area where 90% of the population will have put claims in against the coal board in the 80's. It was seen as a free lunch at the time. It wouldn't surprise me if these claims were highly creative, something that a structural survey would hopefully highlight.

Milliewilly

Fire_Fox wrote: »

I would be going back to my original conveyancing solicitor and/ or surveyor to find out why the subsidence has not come out before now!

Yes but pronto at its at the 7 years limit for litigation!!

Blackpool_Saver

get back to your solicitor

sandiep

Milliewilly wrote: »

Yes but pronto at its at the 7 years limit for litigation!!

You also have the opportunity to lodge a complaint through the law society if you find out that there was information available to your solicitor that should have highlighted this.