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Buying House With Movement
CityTiger
Posts: 41 Forumite
Just had our homebuyers report back on a property we want to buy and it states that whilst there is no significant movement to the original house, the single story rear extension is showing signs of movement possibly caused by insufficient foundations as it may have been built upon the existing retaining wall.
We have been advised to have both the extension and retaining wall inspected by a suitably qualified person.
I have spoken to the surveyor and asked if we were to pull down the extension and replace with a conservatory with proper foundations if that would alleviate the ongoing movement and he said yes.
We are talking to insurance companies at the moment to see if they would be happy to insure us based on the survey.
We are also considering whether to get a structural engineer in to prepare a report, both for our own peace of mind and possibly for the insurance company.
Should we be doing anything else?
Also, if the insurance company requires that some works are carried out before they will insure the property - how would that work? The property will be mortgaged so we need buildings insurance in place to buy the house but unless the sellers will get the work done we wont be able to get the work done to satisfy the insurers until we have bought the house. It seems like catch 22?
One other thing, we did the homebuyers off our own back, not through the mortgage provider. They are doing a standard valuation though, is this issue likely to be picked up on this? I.e. are the mortgage company likely to refuse a mortgage on the property due to the extension issues?
We have been advised to have both the extension and retaining wall inspected by a suitably qualified person.
I have spoken to the surveyor and asked if we were to pull down the extension and replace with a conservatory with proper foundations if that would alleviate the ongoing movement and he said yes.
We are talking to insurance companies at the moment to see if they would be happy to insure us based on the survey.
We are also considering whether to get a structural engineer in to prepare a report, both for our own peace of mind and possibly for the insurance company.
Should we be doing anything else?
Also, if the insurance company requires that some works are carried out before they will insure the property - how would that work? The property will be mortgaged so we need buildings insurance in place to buy the house but unless the sellers will get the work done we wont be able to get the work done to satisfy the insurers until we have bought the house. It seems like catch 22?
One other thing, we did the homebuyers off our own back, not through the mortgage provider. They are doing a standard valuation though, is this issue likely to be picked up on this? I.e. are the mortgage company likely to refuse a mortgage on the property due to the extension issues?
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Comments
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One other thing, I understand that the current insurer has to continue to offer insurance to the new owners of a property, is this correct?
Is this still correct if the current owners hadn't declared the movement to the insurers?
How would we check up on this, would we need to ask the seller to contact the insurers, inform them of what was brought up on our survey and confirm that they would continue to offer insurance to us as the new owners?0 -
One other thing, I understand that the current insurer has to continue to offer insurance to the new owners of a property, is this correct?
Is this still correct if the current owners hadn't declared the movement to the insurers?
How would we check up on this, would we need to ask the seller to contact the insurers, inform them of what was brought up on our survey and confirm that they would continue to offer insurance to us as the new owners?
The insurer who was covering the subsidence at the time it occurred is responsible for paying out when a claim is made.
A lot of people say that there is some rule that insurers have to transfer cover to new clients but to date no one has ever proved this that I have seen. Some do, apparently. You may not like the premiums.
What you tell the mortgage company is up to you. You have "passed" their valuation survey.
Whether you want to take on a house with these kinds of problems is a separate issue.0 -
At the moment we are still waiting for the mortgage valuation so potentially they may still pick it up.
At the moment we have had one insurance company tell us they would still insure us but with an endorsement that they will not pay out any claims relating to subsidence.
As getting buildings insurance is a condition of the mortgage, I assume I would have to tell the mortgage company that this endorsement had been applied and that may potentially cause them to withdraw the offer?0 -
Have you approached any contractors to find out how much they would charge to shore up the foundations on the extension?
If the costs are reasonable underpinning might allow you to keep the extension intact and some lenders allow you to borrow more on your mortgage to cover home improvements. Presuming the selling price reflects the subsidence, then you could end up with a bargain.0 -
PeterLWilson wrote: »Have you approached any contractors to find out how much they would charge to shore up the foundations on the extension?
If the costs are reasonable underpinning might allow you to keep the extension intact and some lenders allow you to borrow more on your mortgage to cover home improvements. Presuming the selling price reflects the subsidence, then you could end up with a bargain.
Not yet, the surveyor mentioned £10k for underpinning though but I'm wary of underpinning as I know a lot of people run a mile when they know a property has been underpinned, including insurers.
I prefer the option of knocking down the extension and replacing with a conservatory. It's more the issues around insurance and mortgage lending that concern me.0 -
Just a quick update. We have now had this checked by a structural engineer and he said that it doesn't need underpinning, any movement appears to be long-standing and non-progressive and there are no significant structural issues at all.
Just shows that surveyors are often over-cautious and it's sometimes worth paying a bit more to get a proper structural report done when you have found your dream house!0 -
Now that the serious stuff is over, I just wanted to know who else accepts this as a form of currency?
:P0 -
Ahhh sorry I see, a play on the title of the thread!! haha very good.0
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