structural movement non progressive - Please help

welcome2015

Yes I just added Mortgagee in to my Policy. But do I need to confirm about CML 6.14.2 ?

welcome2015

I just checked cml.org.uk/cml/handbook/scotland/question-list/1130
and for my lender , its NO . Still I need to check something ?

kingstreet

As long as your insurer confirms the cover meets CML Handbook requirement 6.14.2 to your solicitor, it should be fine.

welcome2015

Kingstreet

Sorry for the delay in replying. Just spoke to my insurer. They have no idea about CML handbook requirement. Can you please explain what exactly I should check with them ? Please explain.

ruggedtoast

You need to think carefully about this as a property with this kind of problem can be hard to sell on. Is this damage reflected in the price? Sometimes homeowners will actually take down the wall and re-render it so that it's not apparent to future buyers, but you can never truthfully claim you didn't know about it once you have the survey.

We had the same problem, in our case it was much more prominently reported on the valuation survey than on the Homebuyers Report which made it hard to gauge how important it was. The surveyor was no help whatsoever.

The bank didnt care but in the end we decided it wasn't for us as insurance was a nightmare to arrange.

kingstreet

You'll need to ask your solicitor to confirm the exact requirements of 6.14.2 as I can't remember them and don't get access to Part 2 of the CML Handbook;-

6.14 Insurance

6.14.1 You must make reasonable enquiries to satisfy yourself that buildings insurance has been arranged for the property from no later than completion.

You should remind the borrower that they:

Must have buildings insurance in accordance with the requirements of the mortgage contract no later than completion, and

Must maintain such buildings insurance throughout the mortgage term

Check part 2 to see if we have any further requirements in relation to buildings insurance.

It sets out the requirements of the cover, such as no more than £1,000 excess for subsidence heave and landslip etc off the top of my head.

welcome2015

ruggedtoast wrote: »

You need to think carefully about this as a property with this kind of problem can be hard to sell on. Is this damage reflected in the price? Sometimes homeowners will actually take down the wall and re-render it so that it's not apparent to future buyers, but you can never truthfully claim you didn't know about it once you have the survey.
We had the same problem, in our case it was much more prominently reported on the valuation survey than on the Homebuyers Report which made it hard to gauge how important it was. The surveyor was no help whatsoever.
The bank didnt care but in the end we decided it wasn't for us as insurance was a nightmare to arrange.

Hi ruggedroast, Our report as mentioned in my original post , it was not mentioned as serious issue, just a notification kind of thing. I did the home buyer report with the Lender's own valuation report. So certainly this is shared with the lender and I mentioned about this crack to Insurer also, They said if its non progressive then they can give me insurance. I understand your point about selling , little confused now. If eveything is fine 1) crack no problems for insurer and lender 2) Report did not mentioned anything serious as the surveyor thought its not required for a structural inspection 3) And seller have never made a claim for any cracks before and aware of it .
Do you still think it will be a problem to sell this property ? :-(

welcome2015

Hi kingstreet , this cover does have £1000 subsidence compulsory excess. and starting on date of exchange . I will ask if my solicitor can confirm this. But is it duty of a solicitor to do this ?

kingstreet

Yes. The whole point of the CML Handbook is to tell solicitors what lenders expect of them. The £1,000 subsidence, heave and landslip was one of the requirements I can remember.

By far the most important is the insurer notes the interest of the lender.

Ask your solicitor to confirm the lender's requirements, so you can pass them on to your insurer.

ruggedtoast

welcome2015 wrote: »

Hi ruggedroast, Our report as mentioned in my original post , it was not mentioned as serious issue, just a notification kind of thing. I did the home buyer report with the Lender's own valuation report. So certainly this is shared with the lender and I mentioned about this crack to Insurer also, They said if its non progressive then they can give me insurance. I understand your point about selling , little confused now. If eveything is fine 1) crack no problems for insurer and lender 2) Report did not mentioned anything serious as the surveyor thought its not required for a structural inspection 3) And seller have never made a claim for any cracks before and aware of it .
Do you still think it will be a problem to sell this property ? :-(

I suggest you do some research into how many high street insurers will provide cover for a property that has been damaged by movement in the past and then make the decision.

You will have very few insurers who will cover you if you want to change supplier in the future, and any future buyer can quite feasibly sit on the phone for hours calling 50 insurers who will all tell them to go elsewhere.

As you need to arrange insurance to exchange, you need to consider, if for no other reason, what effect this will have on future saleability.