New build with 'major defect' - next steps?

ReadySteadyPop

lincroft1710 said:

ReadySteadyPop said:

lincroft1710 said:

Do you have a mortgage and if so what is your current equity in the property?

Good question, but the OP probably just needs to move to a hotel or a rental at this stage?

May be a short term solution if one of the insurers will finance it

Good point, definitely worth investigating.

ReadySteadyPop

Lululoo said:

Yes, it’s mortgaged. I really don’t want to have to move to a hotel. (Have done that previously, paid for by the new build warranty, whilst repairs have been going on. It’s not ideal living in a hotel room with my child….).  I just want to move on to a new place now - I’ve had years of surveys, reports and repairs and now that the major defect is being discussed, I just want to be out of here.

The problem is that sales of new-builds are down massively, why would someone buy a new-build house with a major defect? You need to have another plan here unfortunately.

ReadySteadyPop

Lululoo said:

Please can someone advise me if the steps to take.

Background:
Insurers of the structural warranty have just confirmed that they want to do more investigations to confirm the extent of ‘major defect’  They’re talking about then doing a plan for repairs after these investigations.  . I’ve done some googling and see that major defects can justify recession / compensation. I just want to be out of here now with as little disruption so that me and my child can get on with our lives finally - this house has been falling apart from, pretty much, the minute we moved in. (Then the developer went into administration/ no longer exists and then it was Covid times).  Seems that the house has no proper foundation, amongst various other structural problems, and is at risk of falling down which, to date has caused walls to crack and bend, the roof to move and leak all over the place….and then various infestations getting in through the gaps. I don’t care whether the developer, building regs or the insurer are liable, I just want out of here now.

Are you looking at legal action and getting compensation to fund your next house rather than selling this house?

lincroft1710

Unless the relevant insurer decides that the house is beyond economic repair and pays you a "total loss amount", you will have to wait for it to be repaired. Even if you did get a "TLA", you would have to repay the mortgage from that money and there may be an excess.


I have known subsidence cases where the insurance paid for the house to be demolished and rebuilt and I believe the owners were temporarily housed by the insurance company either partially or fully paying the cost.


Whatever the relevant insurer believes is more cost effective is the route they will take. I also think that if the house was in imminent danger of collapse, the insurers would have rehoused you.


Having 2 separate insurers involved is also problematic as both will try to shift responsibility on to the other.  

ReadySteadyPop

lincroft1710 said:

Unless the relevant insurer decides that the house is beyond economic repair and pays you a "total loss amount", you will have to wait for it to be repaired. Even if you did get a "TLA", you would have to repay the mortgage from that money and there may be an excess.


I have known subsidence cases where the insurance paid for the house to be demolished and rebuilt and I believe the owners were temporarily housed by the insurance company either partially or fully paying the cost.


Whatever the relevant insurer believes is more cost effective is the route they will take. I also think that if the house was in imminent danger of collapse, the insurers would have rehoused you.


Having 2 separate insurers involved is also problematic as both will try to shift responsibility on to the other.  

Good point.