Mortgage offer with special condition

Kelly253

I wondered if anyone could advise, I understand what this means but what I don't know is what will happen if the vendor's insurers are not aware of the previous settlement to the property?
As the vendor has only become the legal owner through grant of probate, and I have only found out about the settlement through a survey?
I don't know what we are supposed to do if they are not willing to carry on the insurance when made aware of the issues, if they are not already aware.
Does it mean I will have to find another mortgage provider who doesn't have this as a condition? Or may they accept another insurance company?
This is what is said under special conditions ..,

In view of the recent history of damage/flooding to the property, we are unable to offer buildings insurance. This mortgage offer is made on the basis that you continue to insure the property with the existing insurer and that cover remains unaffected. The conveyancer must check that the existing insurers are aware of the current/previous claim for subsidence, landslip, heave or flood and that they are willing to continue to provide full cover in accordance with the CML Lenders' Handbook at normal premium rates and with no excess greater than £1000. Where a claim is pending, the insurance company must have accepted liability to settle the claim and in the case of a property purchase, they must agree to assign the benefits of the claim to you on or before completion. If the property is insured by its landlord, the conveyancer must also obtain confirmation that the landlord will liaise with the insurance company to ensure that all repair works are undertaken. Submission of the Certificate of Title will be on the understanding that these have been obtained as appropriate.
Can any one advise please?

marksoton

One for your legal representation then.

G_M

Seems very clear:

Kelly253 wrote: »

.... what will happen if the vendor's insurers are not aware of the previous settlement to the property?

As the vendor has only become the legal owner through grant of probate, and I have only found out about the settlement through a survey?
I don't know what we are supposed to do if they are not willing to carry on the insurance when made aware of the issues, if they are not already aware.
Does it mean I will have to find another mortgage provider who doesn't have this as a condition? Or may they accept another insurance company?
This is what is said under special conditions ..,

In view of the recent history of damage/flooding to the property, we are unable to offer buildings insurance. This mortgage offer is made on the basis that you continue to insure the property with the existing insurer and that cover remains unaffected.
So either
* you get the existing insurer to continue cover, or
* you apply to another lender and hope they don't impose the condition, or
* you find another property

Hope that helps.

Kelly253

I thought that be the case. All that hard work getting to the end and I think it will all be a waste of time.
I'm on maternity, so nationwide were going on my salary before I went on maternity, do any of you know of another lender that will or might lend to someone based on there salary before leave?
As I am not due back toll November.

Kelly253

Can someone also advise if it is possible to amend the mortgage offer, if I had to search for a new property? Or do I have to apply for a new mortgage again?
So it was to the new one and not the one with special conditions?
We would be borrowing the same, but putting down more deposit as another house we have seen is more expensive.

dc197

Seems to me like the lender is only aware of the flooding, not of the settlement. It could be grouping the flooding in with other types of damage, and if you read it with the braces I have added it does not appear that they are limiting you due to settlement.

They say:

In view of the recent history of damage/flooding to the property, we are unable to offer buildings insurance. .... The conveyancer must check that the existing insurers are aware of the current/previous claim for {any of} /B]subsidence, landslip, heave or flood[B and that they are willing to continue to provide full cover in accordance with the CML Lenders' Handbook at normal premium rates and with no excess greater than £1000.


What makes you think that they are aware of the settlement? What did your survey say, and did they see that survey?

Kelly253

It was the nationwide representative that said it was probably due to settlement. The survey brought up a lot of old movement on one half of the house. Identified through cracks.But said that it was historic.
I had to have a drain survey as the ground was soft on one side of the house, this brought up that we needed the following work done. But to me that is not a flood and does not mention the word flood in any of the reports.

Run 4:
• Install new modular soakaway in rear garden
• Install new gully at base of RWP1
• Install sufficient pipework to connect new gully and soakaway
• Backfill excavations
• Reinstate surfaces
• Remove excavated spoil from site

This is what the structural survey said

The property appeared to be in generally good condition; however there is evidence of movement throughout the property.
502. The rear single storey extended outrigger appeared to have settled particularly towards the rear left hand corner possibly due to leaking drains and the closeness of the adjacent Conifer trees. We would therefore recommend that a CCTV survey is taken of the drains around the left hand elevation and rear of the property and any blocked or leaking drains repaired as recommended.
503. We would also recommend that the Conifer tree in the rear left hand corner is taken out and removed. The trees around the garage should also be taken out together with the trees on the rear elevation.
504. The settlement of the floor slab to the front left hand corner of the lounge is probably due to leaking drains, however providing the drains are repaired satisfactorily the floor can be re-levelled with a self levelling screed.
505. There is evidence that the right hand elevation of the property has settled, however this appeared to be historic as there is no evidence within the splash tiles of the crack appearing since the kitchen was fitted. It is therefore considered that this settlement is not progressive and the associated cracks can be cosmetically repaired.
506. After the trees have been removed and any damaged drains repaired, the cracks on the extension can also be cosmetically repaired, however any cracks greater than hairline in width should be repaired with Helifix crack stitching of similar.

I probably realise now that we won't get a mortgage on this house, through nationwide due to the conditions.But I don't want the last few months to go to waste if I need to find another property.
So do hope they might be able to transfer it to another property (obviously they will need to do the house checks) but hopefully can use the paperwork of ours they have already signed off on?

Kelly253

I have managed to speak to the insurance broker who insured the property for the vendor and as he said they are unaware of historical movement. But can most likely get me a quote.
I have given him a copy of the structural report and he is going to find me someone who will insure.
As its with the same insurance company, will this still be classed as the same insurer, even if both policies are sourced from outside sources?

Rachiedabbler70

Hi. I am not qualified in any way but wonder whether you can afford all the work that needs doing. Looks like more exploration required as well. Might cost less to go for property in better condition in long run. Sympathise with your situation though as you seem to have got far in process. Let us know how you get on. Good luck

Kelly253

I hope so, we have £20,000 left over from the sale of our house, so hopefully that will do a lot, plus we do have a lot of disposable income when I return to work that we can plough into the place.
We would go for a home already done but 3 bed detached in our area seem to go for £60 grand more than we have got this for.

Thanks for your reply