Possible subsidence/indemnity

Crochetgirl27

Hi, we bought our home in 2005. During the conveyancing process our solicitor advised that a small extension to the kitchen and dining room didn't have planning or building regs. He had asked the sellers to purchase an indemnity which would protect us if anything went wrong with the extension but they refused. After discussion with our solicitor, we continued with the purchase; the extension had been in place for a long time and appeared well-built.

However, since then, we noticed some cracking to the corner of the extension. We've invited a structural engineer to have a quick look (visual, no exploratory dig as yet), and this does appear to be some movement/subsidence. The rest of the property seems fine. I suppose I have a couple of questions:

1. Is there still the potential of recourse to the previous owner or has that boat well and truly sailed?
2. We had considered funding the remedial work privately rather than through the insurer to avoid problems. But if the movement only affects the extension would the insurers be less concerned than subsidence to the whole property?

EdGasket

1) I think you have no chance because apart from any other criteria, six years have passed so your window for a claim has gone.
2) Whoever funds the work, the subsidence will have to be declared to your insurer and any potential new insurer. Good luck with that. Since having my subsidence repaired by my insurer to 'Building Regs' standard, I have been unable to obtain house insurance at all except through original insurer either at inflated premium to include subsidence cover going forward or at a lower premium but no subsidence cover whatsoever.

Subsidence to any part of the building will be a red flag to the insurer. In theory your neighbours should be informed and also declare to their insurers that a property in the area has suffered subsidence and it will put their premiums up too.

"He had asked the sellers to purchase an indemnity which would protect us if anything went wrong with the extension but they refused. " - well you should have walked away then.

You may as well claim from the insurer though they now have a myriad of exclusion clauses to get out of paying and the excess is usally £1,000. Chances are the original foundations for the extension were not deep enough and this is usually a get out clause for the insurer.

I suppose you could repair it yourself and not mention it to anyone which to be honest might be the best practical option though not ethical or legal.

huckster

Agree, no course of action against seller. You bought it knowing of issues with the extension.

DO NOT overreact to this situation. If you report it to Insurers it will be flagged on a central database, even if it turns out to be not a subsidence issue. Once a potential claim is registered, the Insurers won't remove it.

Best advice is to see what a structural engineer or surveyor advises and to sort out what needs to be done. There might need to be tests and monitoring done. If any works are needed at a lowish cost, it might be better to get it done privately. A house that has had a noted subsidence issue might well have a reduced market value. Though of course you would advise buyers on selling the house.

Remember that if there are any legal issues with the extension, you will encounter these again when trying to sell. It might be worth getting legal advice regarding planning consent issues.

EdGasket

huckster wrote: »

Remember that if there are any legal issues with the extension, you will encounter these again when trying to sell. It might be worth getting legal advice regarding planning consent issues.

Good point. Can you apply for retrospective planning permission in this situation and if so what are the considerations? i.e. is it just an expense or could the council demand it be restored to its former state?

Update: there is a thread here:

https://forums.moneysavingexpert.com/discussion/1644399

Seems like 4 years limit for planning after which the council can't object, but unlimited for building regs. which is why an indemnity may be required when selling unless you choose to get it all inspected now.