Transfer of a house insurance claim

idrisdraig

We've have subsidence confirmed on an empty house and the insurance will pay for repairs. 
However we are keen to sell the house and have been told remedial work could take upto a year.
We don't want to take a hit on the sale price, and are not keen on taking a cash settlement.
As the claim has been agreed, is it possible to transfer the claim to new owners as part of the house sale?

74jax

idrisdraig said:

We've have subsidence confirmed on an empty house and the insurance will pay for repairs. 
However we are keen to sell the house and have been told remedial work could take upto a year.
We don't want to take a hit on the sale price, and are not keen on taking a cash settlement.
As the claim has been agreed, is it possible to transfer the claim to new owners as part of the house sale?

Have you asked the insurance company? 

We could ask say one thing, but it's your insurance company who decide. 

idrisdraig

I'm aware they will be able to answer the question, but the necessary offices are closed for the weekend and I'm just researching the principal until I can speak to them.

eddddy

In general, it's possible to sell the house and transfer the claim.  I've seen this happen with properties sold by auction.

But you would almost certainly have to take a massive hit on price, in order to persuade somebody to take on a 'problem' like that.

It would probably only be interesting to a developer/investor who thought "Here's an opportunity to buy a problem property really cheap, wait until it's repaired, and then make a huge profit."


It would almost certainly be unmortgageable until it's repaired, and it would only be insurable through your existing insurers (and the premium is likely to be very high).

Plus the buyer would have all the grief of having to liaise (argue) with insurers, surveyors, engineers, contractors etc, and the inconvenience of having contractors repairing the property.

sammyjammy

I would imagine even if this is allowed - I'm going to say not - that you would still take a hit on the price, nobody wants ot buy a house and to have to deal with that!

JJR45

Can't see any lender, lending on it until the work is complete.
So you are going to be restricted to a cash buyer, so likely will take a hit on the price anyway, even if they agreed.

I have a feeling they would not transfer though as the contract is with you. The insurance company would want to drop their liability if they could, changing owner is the perfect opportunity.

Also can't see a buyer being happy being locked in with that insurance company while the work is completed if they did agree.

If you want to dispose of it quickly, take the cash offer and cash sale it. As I think without the repairs you are looking at a cash sale anyway.

starving_artist

It is possible.  I know someone who was buying and subsidence came up in the survey.  The sellers started the claim and the claim was signed over to the new owners when they bought it (with a mortgage).  I don't think they paid significantly less because they were buying in a popular area.  This was about 15 years ago so things might have changed.  The other thing to remember with subsidence claims is that you are locked in to that insurer for the next 10 or 15 years at an inflated premium until the claim drops out of their risk rating.

idrisdraig

I hadn't considered mortgages and future insurance. Good points, well made.

GDB2222

We considered buying a house like this, and my wife was keen. I didn't fancy taking on someone else's problem, though, as I was very busy at work, and I'd have had to spend a lot of time supervising the building work. Sure, if had been cheap enough to warrant all the effort, but otherwise why bother?