Possible to sue for loss of value to home?

Phil4432

The neighbour is building an extension, the builders are cowboys. 

I'm just thinking ahead here; if adjoining building works were to cause subsidence I'm aware that I would be fully covered by home insurance.  We have had a Schedule of Condition, done by a surveyor and paid for by the neighbour.  The building has been/will be certified by a private building control company, who have assured they will be making sure the building is up to standard.

However, if there were to be subsidence there would be a significant loss in the value of the property.  Would it then be possible to sue the neighbors and/or builders for financial loss?

eddddy

If you have a Schedule of Condition, it sounds like you probably have a party wall agreement. If so, your party wall surveyor should be able to answer your questions.


But more generally, if there's a party wall agreement and the neighbour's contractors do something that damages your house, your neighbour is liable for your repair costs.

I doubt it would be classed as 'subsidence' and it almost certainly won't be covered by your home insurers.

In fact, you should avoid contacting your insurers and definitely avoid mentioning the word 'subsidence' - until you've got advice from a professional surveyor / engineer, and checked your policy terms to see if you're required to report the 'damage incident' (even though you're not making a claim).


Reporting an 'incident' might increase future premiums, even if you don't make a claim. And unnecessarily having a record of a 'suspected subsidence incident' could be even worse.

Phil4432

Have a Schedule of Condition and Party Wall Agreement yes.  I gave consent, providing a Schedule of Condition was done. 

Just wondering if there was subsidence and a lost money in the sale of the property, if I could sue neighbors/builders for compensation.

eddddy

Phil4432 said:

Have a Schedule of Condition and Party Wall Agreement yes.  I gave consent, providing a Schedule of Condition was done. 

Just wondering if there was subsidence damage to my building and a lost money in the sale of the property, if I could sue neighbors/builders for compensation.

I think you should stop using the word 'subsidence' - I think it's adding to your confusion. Use the phrase 'damage to your house' instead.

So I guess your concern is that the neighbour's contractors will damage your house as follows:

• The neighbour's contractor will dig deep foundations
• Their digging will undermine the foundations of your house
• As a result, part of your house will 'sink' causing cracking

If that happens, your neighbours will be responsible for the cost of repairing your house. (If the neighbours won't pay the costs, you can sue them)

Depending on the extent of the damage to your house, I guess the repairs might include building some new foundations for your house, rebuilding parts of a wall, all of a wall, or multiple walls, etc.

Your house shouldn't be worth less after the repairs - but if you think it is, you can certainly try claiming from your neighbour for your losses.

user1977

If no such damage has happened - is there a particular reason for your question at this stage? i.e. are the answers going to affect how you proceed in some way?

canaldumidi

This is exactly why the Party Wall Act was passed, and why you have a PW Agreement. To ensure the current conditionof your property is documented; to minimise the risk of damage to your property; and toprovided for restitution if damage occurs.

That is also why you have appointed a PW surveyor to cover your back.

If you have particular concerns ,or generic questions, address them to your PW Surveyor. That what he's paid for.

Phil4432

canaldumidi said:

This is exactly why the Party Wall Act was passed, and why you have a PW Agreement. To ensure the current conditionof your property is documented; to minimise the risk of damage to your property; and toprovided for restitution if damage occurs.

That is also why you have appointed a PW surveyor to cover your back.

If you have particular concerns ,or generic questions, address them to your PW Surveyor. That what he's paid for.

True, but litigation is a legal matter.

Phil4432

user1977 said:

If no such damage has happened - is there a particular reason for your question at this stage? i.e. are the answers going to affect how you proceed in some way?

Not at this point, I just like to prepare beforehand in case it happens.  Had a chat with a solicitor, the short answer is yes you can make a claim for devaluation.

lincroft1710

Phil4432 said:

user1977 said:

If no such damage has happened - is there a particular reason for your question at this stage? i.e. are the answers going to affect how you proceed in some way?

Not at this point, I just like to prepare beforehand in case it happens.  Had a chat with a solicitor, the short answer is yes you can make a claim for devaluation.

You can make a claim for almost anything, doesn't mean you will be successful.


For you to be so concerned, it suggests the builders are dangerously incompetent rather than just "cowboys"

canaldumidi

Phil4432 said:

canaldumidi said:

This is exactly why the Party Wall Act was passed, and why you have a PW Agreement. To ensure the current conditionof your property is documented; to minimise the risk of damage to your property; and toprovided for restitution if damage occurs.

That is also why you have appointed a PW surveyor to cover your back.

If you have particular concerns ,or generic questions, address them to your PW Surveyor. That what he's paid for.

True, but litigation is a legal matter.

Which will be highly dependant on evidence provided by an expert witness ie your PW Surveyor, who will have experience in the area and know what can or can't be relalistically claimed based on the evidence he sees and his previous experience.

GDB2222

Without mentioning the S word, some types of damage have a stigma, even if fully repaired. And that stigma reduces the house value.  So, if the neighbours do undermine the OP’s foundations, the op is reasonable in asking whether they would be liable for the long term loss in value due to the stigma, as well as the repair.

Bear in mind that it is a question on the TA6 form.