Buying a leasehold flat with recently raised structural movement issues

Rachel2018

Hello,
I am in the process of buying a flat and after my solicitor enquired, a report has come up where cracks are listed, as well as windows and doors moved, it is mentioning 1mm cracks and doors move 10mm, they think the cracks are caused by nearby trees and that maintaining them will solve the issue. Structural movement is happening. So far they have not started an insurance claim.
I don’t really know what to do, I could get a full structural survey and I think the seller should start the claim and I should get guarantee that any premium will be paid beforehand and all cracks and doors, windows, trees and movement is fixed asap.
However this could take time, which means issues will be still there when I move. Even I wanted to change the floors, I probably can’t do anything until the movement has stopped.
Also this will affect the value of the property when I decide to sell and I don’t know how much of a reduction I should ask for, given I will be paying for a survey and taking a huge risk if I decide to buy.
Is this a common thing? The EA is obviously saying it is minor and even told me I got a goid deal and to take that as a reduction, which is ridiculous because property prices are going down and my offer was made on the grounds of no structural issues, and there are structural issues!
Please advice if you had similar experience.
Thanks

AnotherJoe

I wouldnt buy a flat where there are potential structural issues because the costs could be much much higher than a house and its much more out of your control as to what works will be carried out and when.

Rachel2018

What I think my solicitor is trying to do is making sure the current seller starts a claim and the premium is paid by them so everything is addressed or agreed before anything else happens. At least we need confirmation. But you are right that if other flats have issues, all leaseholders will end up paying a heigher insurance I guess. I am concerned the value of the property might be affected, really.

Smi1er

So you're buying a flat and you know of structural issues.

Even if a claim is started it simply isn't worth the grief. Look for a different flat.

da_rule

You’d also need to check the lease and check who has responsibility to insure. If it is the landlord, is the seller (who I assume is just a leaseholder) allowed to start a claim or can they only notify the landlord and hope they start a claim. Also, if the landlord had the obligation to insure, what were the risks he has to insure against, and does this type of damage fall under those risks?

All in all, I’d be chalking this one up to experience and moving on.

Rachel2018

My solicitor has requested confirmation from the insurer that the claim has been received and they are accepting it. If the lender is still happy to lend then it would be me deciding if I appoint an structural engineer to do a full survey but as da_rule said, the landlord is in control of the claim I think and how much could this affect if I decide to sell in 5 years, let’s say all issues are sorted. I don’t wanyti be in a position where I end up selling for less than I paid. It is all unknowns.

Rachel2018

I thought I would post an update, the insurer sent a company to do another report and they came back saying there is not subsidence and the damage is caused by wear and tear and thermal expansion/contraction of different materials. They do not mention any other issues as the previous report that was listing every crack and door frames dropping, etc.

I don't know what to believe, is it possible that one report highlights structural movement, listing the trees as a potential cause and the other says it is not subsidence?

I am inclined to think this is for the benefit of the insurance company so they have dismissed the claim and for the seller so the bank will accept the property.


What happens if, after all this, it turns to be structural movement, is the insurer liable for providing wrong information? I am considering getting a structural engineer to do another survey for me, so I know he will act on my interest.

Still unsure, was this a mistake made or are they trying to cover a real issue...

diggingdude

If you dont want to walk away get your own surveyor to do a report

Rachel2018

Yes, I think given the situation it would be a full structural engineer report, I read cases where a Homebuyers report did not spot such things.