Building Survey - problems!

Tancred

My buyer has had his report following the building survey on my house. It's not good news. :mad:

The one issue that worries me is this one - in the buyer's own words:

"There is significant movement at the front of the house due to the shared downpipe leaking into the surrounding ground. From the drainage search there does appear to be a surface water drain running in front of the property so this would suggest that the pipe is just leaking rather than being part of a soak away arrangement."

"The whole bay and wall outside are showing signs of significant movement. The new windows that you installed in 2005 are showing signs of movement which suggests this has been going on for some time. So even if the leak is fixed, we will not know if the movement will stop. Potentially the leak could have washed away all the fine materials under the bay leaving a void which might have to be underpinned. Our surveyor has recommended that it is necessary to claim on your building insurance for this (as an escape of water damage claim). This will cover any costs to ensure the bay can be stabilised. It needn’t delay the sale as it should be possible to transfer the claim on the completion of the house purchase but the claim would need to be instigated by you. To assist you, our surveyor has provided a letter for your insurance company which is attached along with some photographs to illustrate the movement."

Is an 'escape of water damage' claim the same as a subsidence claim? If so, I would be hammered with a £1,000 excess. And what about transferring the claim on completion? Is this really possible?

I would be grateful for any advice. At least the buyer hasn't pulled out and is giving me the chance to resolve the issue, but I'm not totally sure what my best course of action is.

Thanks in advance.

SG27

I would be very wary of instigating a claim. What if they pull out half way though the claim? Difficult situation.

Tancred

SG27 wrote: »

I would be very wary of instigating a claim. What if they pull out half way though the claim? Difficult situation.

So should I pay Dyno-Rod or a similar company to do a drainage survey instead?

vegasbaby100

You actually have several options although each of which would require you paying your excess. You are fine to make a claim with your insurance company and then these are the three options (others may know of others though)
firstly - You could agree a sale and transfer the right of the claim to the new owner of the property. (speak with your mortgage company but usually fine.

Secondly -DMV - Diminution in Market Value. Depending on the extent of the damage, it may be possible to agree to sell the house in its’ damaged condition but accept a lower price, the difference being made up by the Insurance Company.

Thirdly - Would be to ask for a cash settlement from the insurance company. Have the works priced up and then sell at the agreed price giving the cash to the new owner.

This is actually fairly common and their mortgage provider and insurance company will be well equipped to help you.

Tancred

vegasbaby100 wrote: »

You actually have several options although each of which would require you paying your excess. You are fine to make a claim with your insurance company and then these are the three options (others may know of others though)
firstly - You could agree a sale and transfer the right of the claim to the new owner of the property. (speak with your mortgage company but usually fine.

Secondly -DMV - Diminution in Market Value. Depending on the extent of the damage, it may be possible to agree to sell the house in its’ damaged condition but accept a lower price, the difference being made up by the Insurance Company.

Thirdly - Would be to ask for a cash settlement from the insurance company. Have the works priced up and then sell at the agreed price giving the cash to the new owner.

This is actually fairly common and their mortgage provider and insurance company will be well equipped to help you.

I suppose my next question would be which excess would I pay? I have a £150 standard excess and a £1,000 one for subsidence. If the apparent bay window subsidence is caused by an underground drainage leak would this be covered by the general excess or the subsidence one? This is my concern. The property is already being sold at below market value (SDLT threshold) and I'm not happy about having to foot the bill for a high repair cost.

vegasbaby100

If you have subsidence and need work related to subsidence I think you will have to pay £1000 even though it is though water seapage.

Your other option would be to have the work carried out potentially new windows and any other remedial work carried out and market it again.

The problem you will have is that if you dont have it done your in a sitaution where you loose this house sale and any other potential house sale and your house deteriates.

Its not a great situation your other option would be to negoitate with the purchasers although I would not want to pay just to have habitable home. Although it may be cheaper for them to negotiate with you rather than start the house buying process again.

I would call your insurance company ASAP to discuss with them.

Tancred

vegasbaby100 wrote: »

If you have subsidence and need work related to subsidence I think you will have to pay £1000 even though it is though water seapage.

Your other option would be to have the work carried out potentially new windows and any other remedial work carried out and market it again.

The problem you will have is that if you dont have it done your in a sitaution where you loose this house sale and any other potential house sale and your house deteriates.

Its not a great situation your other option would be to negoitate with the purchasers although I would not want to pay just to have habitable home. Although it may be cheaper for them to negotiate with you rather than start the house buying process again.

I would call your insurance company ASAP to discuss with them.

I will call the insurers. I'm not convinced that the issue is subsidence as nothing has visibly changed since we bought the house 8 years ago. We had a building survey then and this wasn't mentioned - should we sue our original surveyor? My feeling is that this is settlement, possibly caused by the work the window company did when fitting the double glazing. Anyway, I would imagine that the insurance company will send an assessor to determine the exact nature of the problem.

vegasbaby100

Exactlly. They will be best to give you an informed opinion.

I hope that it all works out well for you. Also dont forget to get what ever they tell you in writing so it can be passed to the other party and the solicitor.

Tancred

vegasbaby100 wrote: »

Exactlly. They will be best to give you an informed opinion.

I hope that it all works out well for you. Also dont forget to get what ever they tell you in writing so it can be passed to the other party and the solicitor.

Agreed, thank you.

poledancer49

Hi...how you getting on? Isn't it weird you gave me advice on my possible subsidence issue and now your home has nearly the same issue as ours? Are the insurance people being helpful...will you have to have more investigatve survey's done?

poledancer49

Tancred...how you getting on??