buying a house with obvious subsidence cracks (owner had no insurance and has died) - how to insure

eskimalita7

I am interested in purchasing a semi-detached property as a cash buyer. From the little research I have done, the property was uninsured when cracks began to appear. The owner sadly died recently and relatives are trying to sell the house. Obviously all buyers are put-off by the huge cracks in the front wall both downstairs and upstairs. The area is known for subsidence due to the clay soil. I do not know if there is a root cause, but I suspect this may be a tree in the front garden.
I have found out the following: 1. I can purchase as a cash buyer. I would not get a mortgage. The beneficiaries of the will do not want to pay for a structural survey. I believe they'd rather take a low offer from a cash buyer.
2. If I use a reputable firm to carry out remedial works (at my cost), I have to wait a year before I can insure the property. Companies like Home Protect will not insure until the engineers report 12 months after the work is finished confirms there has been no further movement.
I need to do the following: 1. speak to the neighbours (semi-detached) to see if they also suffered from any subsidence and if they know when cracks started to appear. 2. check the vendor will give permission for me to have a full investigative survey carried out. They may not due to the work the engineer would need to undertake etc.

My questions are:
1. would it be unwise to live in the property whilst it is uninsurable? The rest of the property is in very good condition. Do I have to leave it empty for 1 year whilst I wait for 12 months to pass? Does anyone have any experience of this.
2. Does anyone know of any insurance companies who will insure it during this time (except for further subsidence, I presume)?
3. Any recommendations for subsidence specialists in SE London / Kent?

Thanks all for your help.

brianposter

Why do you need to insure the property ?

Doozergirl

I'd speak to a decent broker.    Cover will be possible, not for ongoing subsidence, but I'm sure cover would be available for other risks - it's mainly fire that would be of concern.  

It wouldn't stop me moving in because it hasn't in the past.  

Your specialist is your structural engineer.  Then you just need a good and reliable builder.

lincroft1710

brianposter said:

Why do you need to insure the property ?

In case it burns downs, is hit by untraceable flying debris, is affected by heave, is flooded causing structural damage.

Skiddaw1

eskimalita7 said:

I do not know if there is a root cause, but I suspect this may be a tree in the front garden.

Sorry OP, but I'm very much enjoying the (probably unintentional) pun...

AdrianC

eskimalita7 said:

I have found out the following: 1. I can purchase as a cash buyer. I would not get a mortgage. The beneficiaries of the will do not want to pay for a structural survey. I believe they'd rather take a low offer from a cash buyer.

You want a survey, you pay for a survey. What will it tell you...? There's subsidence!

2. If I use a reputable firm to carry out remedial works (at my cost), I have to wait a year before I can insure the property. Companies like Home Protect will not insure until the engineers report 12 months after the work is finished confirms there has been no further movement.

No mortgage lender to require insurance. Are you happy with that risk? Nobody else's decision but yours.

I need to do the following: 1. speak to the neighbours (semi-detached) to see if they also suffered from any subsidence and if they know when cracks started to appear.

Does it make a big difference?

2. check the vendor will give permission for me to have a full investigative survey carried out. They may not due to the work the engineer would need to undertake etc.

Unlikely they'll allow anything other than a simple external look.

My questions are:
1. would it be unwise to live in the property whilst it is uninsurable? The rest of the property is in very good condition.

Your call.
It's not fallen down yet.
How much sleep do you think the last occupant lost over it?

Do I have to leave it empty for 1 year whilst I wait for 12 months to pass? Does anyone have any experience of this.

Why?

2. Does anyone know of any insurance companies who will insure it during this time (except for further subsidence, I presume)?

TBH, any policy you find will be so expensive, it's probably not worth it.

And, of course, it'll exclude anything subsidence-related. And almost anything will get subsidence-linked.