Lender and subsidence

Windsorcastle

We are hoping to exchange tomorrow at last. However, the buyer's solicitor has only today faxed the lender to alert them to a previous subsidence problem (now rectified). The buyer has already arranged his insurance with my insurer (having had to stick with them due to the previous claim), and this insurer happens to also be his lender. Does that make it more likely they will OK it, seeing as they have already agreed to insure?

I am beside myself with worry about this, and just want to be prepared in case they turn round and withdraw the mortgage offer which would be devastating. Does anyone know?

anselld

They are obliged to offer insurance. They are not obliged to lend. However, there is no real reason why they should refurse to lend if this is a historic problem which has been dealt with.

Windsorcastle

anselld wrote: »

They are obliged to offer insurance. They are not obliged to lend. However, there is no real reason why they should refurse to lend if this is a historic problem which has been dealt with.

Thanks Anselld. I didn't realise they were obliged to cover insurance, I just thought it was a 'gentleman's agreement' to do so. I just hope it is logical that they will lend if they're willing to insure, but I'll just have to play the waiting game today and see...

rob404uk

A subsidence history does make the property worth a bit less in my opinion as the property will be dearer to insure. I would prepare yourself for a situation where they may try and gazunder. However, if they have already found insurance I would say things are looking good for you.

Windsorcastle

rob404uk wrote: »

A subsidence history does make the property worth a bit less in my opinion as the property will be dearer to insure. I would prepare yourself for a situation where they may try and gazunder. However, if they have already found insurance I would say things are looking good for you.

Thanks Rob, I did price the property lower than the EA's valuations were suggesting, and I accepted an offer lower again. The buyer also knows I turned down a higher offer the next day as we had already made a verbal agreement and he was grateful to me for honouring that.

It is the buyer's solicitor who has tried to wind them up actually, not the buyer at all. I fully expected the buyer to come back and say their insurance quote was too high and they wanted some money off, but they just came back to the EA and said, "insurance all sorted, ready to exchange". I was quite surprised TBH. I would be very surprised if they tried to gazunder me now unless their shady solicitor suggests it to them...

Dan-Dan

keep us updated windsorcastle , have been following your trials and tribualtions for weeks and weeks , ever since the first thread about your neighbours having the supports under their window

kingstreet

What did the mortgage report & valuation say about historic subsidence? Any idea?

Presuming the surveyor was aware of it, it should have been factored into the valuation and the lender should have no issue with it.

Windsorcastle

Dan-Dan wrote: »

keep us updated windsorcastle , have been following your trials and tribualtions for weeks and weeks , ever since the first thread about your neighbours having the supports under their window

Thanks Dan-Dan. I certainly will post an update if there is ever an end to the saga!! Have been pacing the house all morning waiting for confirmation that we can exchange today but not a dicky bird so far. My stomach is churning!

Everyone's advice and support on MSE has been invaluable over the past months, and I am indebted to everyone who has taken the time to offer advice, including your good self!

Windsorcastle

kingstreet wrote: »

What did the mortgage report & valuation say about historic subsidence? Any idea?

Presuming the surveyor was aware of it, it should have been factored into the valuation and the lender should have no issue with it.

Hi Kingstreet, the buyer opted for a mortgage valuation only, although they knew about the remedial works - I don't think the surveyor was aware though because she did a 15 min run round the house, and actually said to me "there are no structural problems, the only issue is finding comparable sales data" because my house is unusual in being a 1 bed FH terrace. The next I heard they had their mortgage offer through, so In know the surveyor confirmed the valuation, and no issues at all were raised by her. I'm just fretting that teh lender will turn round now and insist on a full structural report. I have a cert of structural adequacy and a 6 year guarantee from the insurer, so I'm hoping that is reassurance enough. The wait is excruciating!!