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Shared Ownership Buildings Insurance Subsidence Excess preventing sale
Mkinili
Posts: 2 Newbie
Good evening all,
We are trying to sell our shared ownership house and have found a buyer. During the conveyancing process our buyers mortgage lender refused the £5,000 subsidence excess on the existing buildings insurance. Under the terms of the lease, the freeholder is responsible for the buildings insurance and are unable to remove the property from the existing policy. The buyers are interested in buying our share which is 50% but cannot arrange for their own insurance as then the property would be dual-insured and no insurance company would do that. We have come to a dead end as the housing association who own the freehold state that they cannot make any changes to the policy nor amend the lease so that the buyers would be responsible for their own insurance.
The house does not have any subsidence issues or past claims and this excess of £5,000 is purely benefiting the housing association. We, the current owners, were not informed of this high excess and I doubt any of the other leaseholders this policy applies to were informed either.
Where do we stand with this? Is this even legal? They are preventing our sale and other leaseholders are highly likely without any knowledge breaching the terms of their mortgage contract which at a push would only accept up to £1,500 maximum for subsidence excess.
The housing associations buildings insurance policy is due for renewal at the end of this month but their legal team are making no promises to whether the excess will reduce. They have advised that we sell the house on the open market at 100% value but this could further delay this already long process.
Isn't shared ownership supposed to be affordable? Any advice appreciated, thanking you in advance.
We are trying to sell our shared ownership house and have found a buyer. During the conveyancing process our buyers mortgage lender refused the £5,000 subsidence excess on the existing buildings insurance. Under the terms of the lease, the freeholder is responsible for the buildings insurance and are unable to remove the property from the existing policy. The buyers are interested in buying our share which is 50% but cannot arrange for their own insurance as then the property would be dual-insured and no insurance company would do that. We have come to a dead end as the housing association who own the freehold state that they cannot make any changes to the policy nor amend the lease so that the buyers would be responsible for their own insurance.
The house does not have any subsidence issues or past claims and this excess of £5,000 is purely benefiting the housing association. We, the current owners, were not informed of this high excess and I doubt any of the other leaseholders this policy applies to were informed either.
Where do we stand with this? Is this even legal? They are preventing our sale and other leaseholders are highly likely without any knowledge breaching the terms of their mortgage contract which at a push would only accept up to £1,500 maximum for subsidence excess.
The housing associations buildings insurance policy is due for renewal at the end of this month but their legal team are making no promises to whether the excess will reduce. They have advised that we sell the house on the open market at 100% value but this could further delay this already long process.
Isn't shared ownership supposed to be affordable? Any advice appreciated, thanking you in advance.
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