Structural movement

acealfa

Hi all,

First time post but this site seems the best place to ask for advice so a big hi to everyone and a thank you in advance.

I've purchased a property & contracts have been exchanged but on the survey report it stated there is evidence of structural movement, landslip or heave in the property but it appears to be long standing and is unlikely to be progressive. It also states that no specialist reports are needed i.e Structural Engineer & that the property is suitable for a mortgage so I didn't think anymore of it. There was a crack down the wall near the staircase but looked just to be plaster & nothing sinister. The house is in need of a full revamp anyway.

But the situation I've got now is no reputable insurance company will offer me home insurance. Including the mortgage companies preferred insurance so worst case scenario is it possible they won't release the money? In which case where do I stand now that contracts have been exchanged?

I don't really know the best way to proceed?

Thanks in advance

jackr5

Did you not have to have home insurance in place from the time of exchange?

lincroft1710

Has your lender seen the survey?

Approach an insurance broker re house insurance.

Ask your solicitor to confirm with your lender that they will release the funds.

joeistheone

Did you receive a copy of the vendor's last buildings insurance policy schedule? When I purchased my leasehold flat, I got this as part of the general enquiries my solicitor made. You could at the very least use the same insurer as presumably the vendor has buildings insurance. I'm sure Aviva provide buildings insurance for buildings with long standing/historic movement so I would be surprised you can't find any other 'reputable' (by which I assume you mean 'household') providers.

dc197

My research into a similar issue reveals that most highstreet and online insurers will blanket refuse if you tick "yes" in the dreaded "subsidence" box.
But there are many other insurers who ask more detailed questions who will still insure you. For example, they only want to know about issues from last 15 years, etc.

acealfa

jackr5 wrote: »

Did you not have to have home insurance in place from the time of exchange?

I went in yesterday to sign ready for exchange on 24th but had a phone on same day to say contracts have been exchanged and completion is now on 24th. I used the same solicitor as the seller.

lincroft1710 wrote: »

Has your lender seen the survey?

Approach an insurance broker re house insurance.

Ask your solicitor to confirm with your lender that they will release the funds.

Yes they ordered the survey to be done but it was only a valuation report. Once they were happy they formally sent me the mortgage offer.

It seems most brokers want a full detailed report about subsidence which I don't have.

It seems all brokers need a full detailed report

Gareth_Alien

I've seen quite a few surveys for various houses and the main thing to take away from them is they have to cover their [expletive]. In your example, it's probable that they've noticed a crack that has been caused by minute structural movement. If they didn't note it down in the survey and the place fell down they would be open to being sued or similar.
In survey's I've had on my old houses, they've all said evidence of damp - I've had some raising issues with rooves, chimneys, flooring, etc, etc. Never had an issue. Indeed, after shelling out £350+ on various surveys I've thought 'well, this was a waste of time/money' when you realise a lot of their advisories are entirely down to the age of the property and not actual faults.
Your first step would be to contact the surveyor to find what evidence they have for structural movement - if you can talk to the person that actually had eyes on the issue then you may well find out 'there was a crack that's x size in y wall'. If it comes back that foundations are crumbling and the gable end is ready to drop into the road - then that would be a cause for concern.
But it's probably nothing.

acealfa

Gareth_Alien wrote: »

I've seen quite a few surveys for various houses and the main thing to take away from them is they have to cover their [expletive]. In your example, it's probable that they've noticed a crack that has been caused by minute structural movement. If they didn't note it down in the survey and the place fell down they would be open to being sued or similar.
In survey's I've had on my old houses, they've all said evidence of damp - I've had some raising issues with rooves, chimneys, flooring, etc, etc. Never had an issue. Indeed, after shelling out £350+ on various surveys I've thought 'well, this was a waste of time/money' when you realise a lot of their advisories are entirely down to the age of the property and not actual faults.
Your first step would be to contact the surveyor to find what evidence they have for structural movement - if you can talk to the person that actually had eyes on the issue then you may well find out 'there was a crack that's x size in y wall'. If it comes back that foundations are crumbling and the gable end is ready to drop into the road - then that would be a cause for concern.
But it's probably nothing.

Thanks for the reply. I've still got the issue of obtaining insurance though, do I just say there's no evidence and leave myself open?

What will happen if I can't get cover before completion date and the lender won't release funds?

HouseBuyer77

But the situation I've got now is no reputable insurance company will offer me home insurance. Including the mortgage companies preferred insurance so worst case scenario is it possible they won't release the money?

When you say no-one will offer you insurance have you spoken to them over the phone? Or just been looking at online quotes?

Have you phoned an insurance broker? I would have thought someone would offer you insurance, though it might be a specialist firm and it might not be cheap.

acealfa

I've spoken to one who wanted to see a structural report which I don't have.

A couple I've spoken to wont meet the cover requirements asked for by the lender.

I will indeed have to call a broker but I'm concerned now that If the lenders own insurance won't cover me what chance have I got for them to release the funds still?

All very frustrating and taking the excitement away

MM64

Are you 100% sure that you have exchanged contracts?

Your solicitor should of made sure insurance was in place Prior to EOC. Also they should of contacted you on the day to make sure you were happy to proceed.

Assuming you have exchanged I would tread carefully with the lender. The consequences of them withdrawing funds before completion are immense. You will get sued up and down the chain which potentially will cost 10s of thousands.

If I was in this position I would tick the no box, get the insurance in place and sort it out after completion. (Blame the wife and say she misread the report).

They will probably cancel the policy but like others have said there are loads of specialist brokers that will cover you.

The main thing here is if you have indeed exchanged you don't want to give your lender any reason not to release funds prior to completion.