subsidence and insurance on a new property

Bark01

I'm purchasing a property and the building survey has noted subsidence across the front of the house. Its built on a steep slope and the front garden has hard landscaping tilting towards the house. He suspects the water from the front garden is draining into the front of the house and causing it to slip down hill. They have recommended that I reduce my offer by £25k to cover the work

Its a probate house so would it be covered by the sellers insurance? 

If I brought it would subsidence be covered by my insurance seeing as it was there at purchase?

eddddy

Bark01 said:

Its a probate house so would it be covered by the sellers insurance? 

If I brought it would subsidence be covered by my insurance seeing as it was there at purchase?

Subsidence often needs to be investigated and monitored for a year or more, before repairs can start.

It should be possible for the current owners to make a claim on their insurance (assuming insurance is in place), then sell the property to you, and you take over the claim - if you're prepared to take on that amount of hassle.

But you'd need to be a cash buyer - it's extremely unlikely that you'd find a mortgage lender who would lend in those circumstances.


Or you could buy with cash and pay for the repairs yourself - again, no mortgage lender would lend.

If you bought (with cash) and took out a new insurance policy, it wouldn't cover the existing damage.

Bark01

Its via a mortgage

eddddy

Bark01 said:

Its via a mortgage

Has the mortgage valuer seen the property yet? If so, what did they say?

It sounds like a non-starter.


Unless the surveyor said something like it "might be" subsidence, and you can get a specialist report saying it isn't subsidence.

But I'm surprised that your surveyor simply said to reduce your offer by £25k - without mentioning all the issues with insurance, mortgage etc. Maybe ask the surveyor their opinion on insurance and mortgagability - in case there's been a misunderstanding somewhere.

Bark01

I don't think many mortgage valuers actually visit sited these days. It was a desk based valuation.

Annemos

Oh aghhh, 

In my opinion, unless you are an experienced builder who develops cash-purchase properties for a very low price. Stay well away from this. 

We had a probate property like this just up the road and the Builder underpinned it. 

Bark01

I went half's with the vendors on a structural engineers to get a preliminary report and the SE said it would need pits digging and to be monitored over time. The vendors had let their insurance lapse so I pulled out.

Annemos

Thanks for letting us know, Bark01. I am happy you can relax. 


(I often wish I could walk away from mine. 3 years 7 months into a Subsidence claim. Insurance-delegated people have messed up the repairs to my home twice. It is at the Financial Ombudsman, now.)

Thrugelmir

Bark01 said:

The vendors had let their insurance lapse so I pulled out.

Wonder why?