SEARCHES

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jonahinoz
Posts: 1547
Joined: Fri Aug 05, 2011 5:15 pm

SEARCHES

Post by jonahinoz » Wed Jul 18, 2018 6:53 pm

Hi,

We are buying a house in the East Midlands. Three months into the procedure, our solicitor has produced the results of "Searches", which say the house is close to an area where the ground conditions have a moderate to high potential for natural subsidence. Our lenders are demanding a letter from our insurers, saying that they are prepared to accept this risk.

Our insurers say that subsidence will be covered, subject to us paying the first £1,000. Getting them to write a letter speciically about this potential risk, is a different matter.

The whole area wes developed by a "high end" builder in the mid-1980s with , apparently, the council officials being very hawkish. The surveyor, acting for the lenders, make no mention of subsidence. The average price for a house in this post code is £340,000. There are going to be some long faces if the potential is realised. This could make the whole area unsaleable, and probably the same thing is happening all over the country

We don't regard this as a deal breaker. It can't be that many years ago that we would never have known. This is the first time that I have seen a search result this detailed. Scarey!

My concern is the time it has taken, and the costs generated, for this potential deal breaker to come to light.We are pressing on.

John W

jonahinoz
Posts: 1547
Joined: Fri Aug 05, 2011 5:15 pm

Re: SEARCHES

Post by jonahinoz » Thu Jul 19, 2018 8:51 am

Hi,

This morning I "done a Google", searching for HIGH MODERATE POTENTIAL NATURAL SUBSIDENCE, and found a discussion about the very same problem.

https://forums.moneysavingexpert.com/sh ... ?t=3482379

It seems that the insurers are not bothered about potential, they only want to know about actual subsidence. We already had that answer from our insurers, over thev telephone (My wife damanded to speak to an underwriter, she had to insist, but managed it). The nice man said that subsidence was covered, excluding the first £1,000.

Our solicitors, presumably responding to questions from our lender, are insisting on written confirmation that our insurers have agreed to cover this specific, potential risk. I thought insurers were in the business of covering potential risks, otherwise it would be "assurance".

Getting them to write the required letter is the difficult bit.

John W

jonahinoz
Posts: 1547
Joined: Fri Aug 05, 2011 5:15 pm

Re: SEARCHES

Post by jonahinoz » Tue Jul 24, 2018 8:33 am

Hi,

My insurers have finally produced the confirmation required. The premium will be about £60 more than we are currently paying.

In the meantime, I had contacted RIAS (Retirement Insurance Advisory Service) who are (were) targetting retired civil servants, to see if they could help. They replied that they were low risk insurers, and would be unlikely to offer cover. They suggested the name of a high risk insurer who could probably help.

Whatever, it seems the problem has been overcome, but I am wondering if this problem is going to be more common in the future. As I said, it took a few months for the Environmental Survey to be received by my lenders, with the clock ticking in the finance and health departments. My wife desperately needs to move into a bungalow, and I'm not far behind.

Be aware, if you are thinking of moving house.

There was a feature on Victoria Derbyshires version of the BBC news, yesterday, circa 10 o'clock, Channel 231, about surveyors down-valuing properties. Interesting viewing ... especially if you have to find an extra £10,000 deposit. According to one estate agent, this is affecting one house in five.

John W

jonahinoz
Posts: 1547
Joined: Fri Aug 05, 2011 5:15 pm

Re: SEARCHES

Post by jonahinoz » Tue Jul 31, 2018 8:10 pm

Hi,

I've now had to confirm that I an not a PEP (Politically Exposed Person). Amongst those who I might be, are ...

Members of Borough Councils scattered around the UK

The brother of an Associate Justice of the Supreme Court of Arkansas.

Vice Chairman of the United Auburn Indian Community of the Auburn Rancheria of Califonia.

Ex-huband of a former member of the House of Lords.

Managing Director of Radio and Television of Ireland.

How much do these searches cost, and is that expense justified.

John W

jonahinoz
Posts: 1547
Joined: Fri Aug 05, 2011 5:15 pm

Re: SEARCHES

Post by jonahinoz » Sat Aug 04, 2018 8:50 am

Hi

The Saga is nearly over, all the hoops have been jumped through. We move on Monday. One last fright.

My wife did an electronic transfer of £17,000 to our solicitors, being the balance of the purchase of our new home.

The bank sent it off at 07.30hrs. It had not arrived by mid-afternoon. My wife was worried that she had made a mistake in the account number. The bank said it had probably been diverted for FRAUD CHECKS. So much for instantaneous transfers.

It arrived just after 16.00hrs, so the dog escaped a good kicking. :D

John W

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