Holiday Let Mortgage On Previously Flooded House

loveka

Hello, and thanks for any help.
I am assuming that it would be impossible to find a lender who would lend on a property without flood insurance?

This is a property I am selling. When we bought 5 years ago, with a holiday let mortgage, we couldn't get flood insurance so have never had it. The lender didn't ask, and it wasn't an issue for us. The village the house is in had a flood defence system put in 25 years ago after the flood which is the issue.

Now we are selling and we are concerned that the property is in fact unmortgageable for holiday let purposes.

I am also concerned about what will happen if we keep the house when our fixed rate comes to an end.

Thanks.

davidmcn

loveka said:

 The lender didn't ask

But presumably they are expecting you to have insurance against all the usual risks? 

loveka

It was 5 years ago. We sent them our buildings insurance certificate but it doesn't include flooding.

dimbo61

You are trying to sell.
Why not wait and see who views and what offers if any you get.
Has the property suffered any flooding in the 5 years you have owned it.

loveka

Thanks for your reply. 

No, no flooding since 1996.

We have had an offer but they need a mortgage hence the question.

Thrugelmir

Couldn't get flood insurance or weren't willing to pay the premium?  

loveka

When we bought we couldn't get it at all. We weren't offered it at any price.

Now, the premium is £1500 a year on top of the regular insurance. So comes in at £2000 a year  which the people who have offered don't want to pay.

Thrugelmir

Is the premium quoted through the Flood Re scheme? 

loveka

No, flood re is only for residential properties, it doesn't apply if it is a holiday let.

cpknight

loveka said:

No, flood re is only for residential properties, it doesn't apply if it is a holiday let.

Exactly what I was going to say

GrumpyDil

So if they are buying this as a holiday let business then surely the insurance just foms a cost to factor into their business plans.