Can’t exchange / complete until subsidence building works

Lucy55

Hello,

New to the forum but in need of BIG advice. We have sold our 2 bed flat and had an offer accepted on a 3 bed semi. We’ve got 2 children and really need this move to go ahead.

Our flat was super hard to sell due to confirmed planning permissions above and has lost value. We finally got some buyers in august who are desperate to move in.

The seller of the semi we have bought didn’t tell us she made a subsidence claim in June. The drain was leaking and caused movement in clay and the house moved slightly. Couple of cracks which need to be repainted and rendered, rated as ‘scale 2 subsidence’ (5 being the worst)

These works still aren’t scheduled and we can’t get insurance or until they’re completed as it’s an on going claim. Chasing drastically for dates which hoping for this week however our buyers have said if we don’t exchange their side by Friday they’ll pull out. They’re happy to complete end of January however this would mean if something becomes wrong with the house we will need to move out our flat end of Jan with no where to go! Or do we risk it, exchange their side and hope the works (which are just cosmetic) are ok and we get a structural integrity certificate and can then complete.

I know this is a long story to follow! We’ve got 2 little girls and we really want a house with a garden for them now and this is so important for us. Please help!

jaybeetoo

Move into rented accommodation if you don’t want to lose your sale.

Lucy55

We’d then have to pay rent and our mortgage as we can’t put a pause on our current mortgage unfortunately. But thanks for the reply!

Sky_

Could you move in with family for a while?


As I see it your options are to either A) lose your purchasers or continue with the sale and find alternative accomodation until your house is ready.


It is also worth talking to your mortgage provider and asking to go interest only or have a payment holiday for a short time after your flat is sold. That might help with paying rent.

davidmcn

Sky_ wrote: »

It is also worth talking to your mortgage provider and asking to go interest only or have a payment holiday for a short time after your flat is sold. That might help with paying rent.

I can't see many lenders being happy to turn a mortgage into an unsecured debt for an indefinite (or indeed any) period.

Thrugelmir

Lucy55 wrote: »

We’d then have to pay rent and our mortgage as we can’t put a pause on our current mortgage unfortunately.

Proceed with selling your property. When the sale completes move into rented.

Continue to look for an alternative property to purchase.

AdrianC

Lucy55 wrote: »

We’d then have to pay rent and our mortgage as we can’t put a pause on our current mortgage unfortunately. But thanks for the reply!

Yes, but you aren't going to be owning a property that's uninsurable due to an ongoing subsidence claim and future disruptive work.

Nor are you going to be losing a sale that was "super hard".

Your choice. A little extra expense or a lot of blood pressure. I know which I'd be going for. And you won't be paying "the mortgage" - you'll be paying any early redemption charge.

Celaeneo

You can purchase the property while the claim is on going. Some subsidence claims go on for years and therefore it is quite common. Ask your vendor to enquire with their claims handler about a transfer of benefits document. It just means you inherit the claim and take over from them.

cattie

Unless you're getting the house for a bargain price I personally would avoid any property that had any kind of recent subsidence history. Not only can they take longer than normal to sell, but you usually end up taking quite a hit on price. I speak from experience.

If the vendor indeed hadn't warned you of a subsidence claim when accepting your offer then I'd be walking away fast. With the property I owned I was upfront with ea & potential buyers from day one regarding the history of the property. No sense in trying to pull the wool over people's eyes.

lincroft1710

Celaeneo wrote: »

You can purchase the property while the claim is on going. Some subsidence claims go on for years and therefore it is quite common. Ask your vendor to enquire with their claims handler about a transfer of benefits document. It just means you inherit the claim and take over from them.

Rather you than me!

I would never purchase a property with an ongoing subsidence claim. I'm sure lenders and insurers would not look favourably on such a property.

To OP, I would think carefully about continuing with this purchase, it could take months to get settled.

Skiddaw1

I think if I were you OP, I'd continue with the sale and agree to a January completion date but if things aren't fully resolved with the subsidence issue very soon I'd definitely pull out of the ongoing purchase and either move into rented accommodation (are you in a location where you could possibly find a cheap holiday let for a few months over the winter?) or stay with family (if feasible) whilst you look for another house.