Massive excess for Subsidence, Landslip and Heave- leasehold: mortgage Nationwide

amachete

I am planning to buy my first property, which is a standard small flat/maisonette alike in South London. I am running out of time to get on a property ladder ( single mum, late 30's) and I will have a very small deposit ( 5% only). Only one bank currently is able to lend me money on these terms and it is Nationwide.

My solicitor just told me that she will need to go to my lender ( bank) and let them know that the excess from a landlord/freeholder insurance is £30,000 (!!!!) for Subsidence, Landslip and Heave "due to previous Subsidence claims, these have all been due to tree root encroachment, mainly from the trees in the adjoining woodland" .Root encroachment claims were made in 90's, 2013 and 2022 around the block of the flats but not directly to my flat ( if it even matters). The solicitor said she is obliged to let the bank know and she is worried, meaning that the bank might not lend me money when they know this.
There were quite few flats sold and still on sale in the same road/block so they somehow managed to do it (?)... anyway, while I am waiting to hear back from the bank/solicitor, I would appreciate your thoughts.

1. What are my chances of the bank actually be OK with it knowing this excess of the landlords(freeholders) insurance is so high due to previous claims?

2) If my bank is OK with that, do I actually proceed with it, will it be harder to sell this property myself later? will my service charges be super high? Or is it nothing to worry about knowing all or most of the London properties have had some issues like this?

Probably should add to it that I am not overly in love with this property, it just I can't afford anything better at this stage and I see it more of a step on a property ladder rather than buying "a home" and I am hoping to be able to sell it in a couple of years when my child is older and go further away from London and hopefully then get " a home". Of course all of this is if life permits. My point is that I can't accept the risk of not being able to sell later if there is a risk.

Thanks again and hope it all makes sense, sorry again for so much info.

poseidon1

amachete said:

I am planning to buy my first property, which is a standard small flat/maisonette alike in South London. I am running out of time to get on a property ladder ( single mum, late 30's) and I will have a very small deposit ( 5% only). Only one bank currently is able to lend me money on these terms and it is Nationwide.

My solicitor just told me that she will need to go to my lender ( bank) and let them know that the excess from a landlord/freeholder insurance is £30,000 (!!!!) for Subsidence, Landslip and Heave "due to previous Subsidence claims, these have all been due to tree root encroachment, mainly from the trees in the adjoining woodland" .Root encroachment claims were made in 90's, 2013 and 2022 around the block of the flats but not directly to my flat ( if it even matters). The solicitor said she is obliged to let the bank know and she is worried, meaning that the bank might not lend me money when they know this.
There were quite few flats sold and still on sale in the same road/block so they somehow managed to do it (?)... anyway, while I am waiting to hear back from the bank/solicitor, I would appreciate your thoughts.

1. What are my chances of the bank actually be OK with it knowing this excess of the landlords(freeholders) insurance is so high due to previous claims?

2) If my bank is OK with that, do I actually proceed with it, will it be harder to sell this property myself later? will my service charges be super high? Or is it nothing to worry about knowing all or most of the London properties have had some issues like this?

Probably should add to it that I am not overly in love with this property, it just I can't afford anything better at this stage and I see it more of a step on a property ladder rather than buying "a home" and I am hoping to be able to sell it in a couple of years when my child is older and go further away from London and hopefully then get " a home". Of course all of this is if life permits. My point is that I can't accept the risk of not being able to sell later if there is a risk.

Thanks again and hope it all makes sense, sorry again for so much info.

Actual subsidence issues of the nature you have outlined is not a common issue throughout London ( not clear where on earth you got that impression).

There are parts of London where the shrinking of underlying  London clay has necessitated underpinning to a minority properties, but in those situations the remedial work is normally permanent with low likelihood of reoccurrence.

The history of root encroachments claims you mention are excessive in the extreme and short of erasing the cause ( the nearby woodlands), this is certainly not a proposition I would consider for one moment.  The fact that other buyers seem to be either unconcerned or ignorant of the ramifications of past claims and the very high policy excess resulting therefrom, should not be a reason for you to follow in their footsteps.

There are to many other potential issues related to flat ownership without you  taking on the proven risks this property presents as your first purchase. As you say you can't afford to get this wrong.

amachete

poseidon1 said:

amachete said:

I am planning to buy my first property, which is a standard small flat/maisonette alike in South London. I am running out of time to get on a property ladder ( single mum, late 30's) and I will have a very small deposit ( 5% only). Only one bank currently is able to lend me money on these terms and it is Nationwide.

My solicitor just told me that she will need to go to my lender ( bank) and let them know that the excess from a landlord/freeholder insurance is £30,000 (!!!!) for Subsidence, Landslip and Heave "due to previous Subsidence claims, these have all been due to tree root encroachment, mainly from the trees in the adjoining woodland" .Root encroachment claims were made in 90's, 2013 and 2022 around the block of the flats but not directly to my flat ( if it even matters). The solicitor said she is obliged to let the bank know and she is worried, meaning that the bank might not lend me money when they know this.
There were quite few flats sold and still on sale in the same road/block so they somehow managed to do it (?)... anyway, while I am waiting to hear back from the bank/solicitor, I would appreciate your thoughts.

1. What are my chances of the bank actually be OK with it knowing this excess of the landlords(freeholders) insurance is so high due to previous claims?

2) If my bank is OK with that, do I actually proceed with it, will it be harder to sell this property myself later? will my service charges be super high? Or is it nothing to worry about knowing all or most of the London properties have had some issues like this?

Probably should add to it that I am not overly in love with this property, it just I can't afford anything better at this stage and I see it more of a step on a property ladder rather than buying "a home" and I am hoping to be able to sell it in a couple of years when my child is older and go further away from London and hopefully then get " a home". Of course all of this is if life permits. My point is that I can't accept the risk of not being able to sell later if there is a risk.

Thanks again and hope it all makes sense, sorry again for so much info.

Actual subsidence issues of the nature you have outlined is not a common issue throughout London ( not clear where on earth you got that impression).

There are parts of London where the shrinking of underlying  London clay has necessitated underpinning to a minority properties, but in those situations the remedial work is normally permanent with low likelihood of reoccurrence.

The history of root encroachments claims you mention are excessive in the extreme and short of erasing the cause ( the nearby woodlands), this is certainly not a proposition I would consider for one moment.  The fact that other buyers seem to be either unconcerned or ignorant of the ramifications of past claims and the very high policy excess resulting therefrom, should not be a reason for you to follow in their footsteps.

There are to many other potential issues related to flat ownership without you  taking on the proven risks this property presents as your first purchase. As you say you can't afford to get this wrong.

Hello
Thank you so much for reading and replying to my post. Thank you for explaining that the situation is severe and not worth me proceeding further. I understand that your advice would be not to proceed with this property.

Strangely just today and yesterday two identical flats in the same block went on the market, it almost feels like people are "running from a sinking ship".