Garage Subsidence on Purchase - Help!

Garage Subsidence on Purchase - Help!

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BorniteIdentity

Original Poster:

1,055 posts

131 months

Friday 22nd May 2015
quotequote all
Hi.

Hoping that someone may have been in a similar boat here, and can offer some advice.

We are close to exchange of contracts on the purchase of a 1960s property. It has a detached garage on the plot (it's next to the house, but in no way connected to the dwelling).

The homebuyers survey indicated signs of subsidence on the garage - and says that whilst it will continue to serve us for some years to come, it's not economically repairable.

We negotiated a £5,000 'allowance' from the seller (basically cashback at completion) towards having a new garage built. No problem. Until the lender asks what the allowance is for, we say to have a new garage built and they cotton on.

We're now in a very vicious triangle, as our current insurer (Legal and General) have said they won't even consider any of it.

  • We can't move in without insurance.
  • We can't get insurance whilst the garage is still there.
  • We can't knock down the current garage until we move in.
  • We can't move in until we have insurance.
  • We can't get insurance whilst the garage is still there.
  • We can't knock down the current garage until we move in.
  • We can't move in without insurance.
Etc.

I guess what we want is a policy that will disregard the garage. It will have nothing in it as such, so whatever. We just need a policy in place so we can move in - and THEN rectify the problems. As you can see from above, we can't do that until we move in.

Help!

BorniteIdentity

Original Poster:

1,055 posts

131 months

Friday 22nd May 2015
quotequote all
This was the next twist.

The property is currently insured via RIAS - who specialise in insurance for the over 50s.

What I'm not sure is whether they can discriminate against me on the grounds of age? I know there was a lot of broohaha over gender equality and car insurance, but this is all new to me.

BorniteIdentity

Original Poster:

1,055 posts

131 months

Friday 22nd May 2015
quotequote all
TA14 said:
As per Elrico.

You can move in without insurance, it's just not usually advisable.
Surely not with a lender securing £235,000 to the property?

BorniteIdentity

Original Poster:

1,055 posts

131 months

Friday 22nd May 2015
quotequote all
Just a little more colour here.

The garage has subsidence because it has no formal footings. The survey indicates that it is built on a concrete slab, and that the movement has happened because there have been trees removed to the rear of it.

It gets worse.

The company who currently insure the property WOULD insure the property, as they already do. However, they won't because they don't insure anybody with my occupation. Unbelievable.

Another specialist broker that deals with matters like this will likely get some cover, but with an increased excess for subsidence. The lender won't accept anything more than £1,000 so we're likely to still be in a stalemate situation.

I feel sick.

Thanks for your help so far.

BorniteIdentity

Original Poster:

1,055 posts

131 months

Friday 22nd May 2015
quotequote all
Spudler said:
Specialist insurer.
You don't have time to have a structural survey carried out , which will include inspection holes etc.
Pay a bit more for insurance-move in-rebuild garage-change insurance on renewal.
Fine, if we can find an insurer that will do it with an excess of £1,000 or less for subsidence. Otherwise the lender won't accept it.

BorniteIdentity

Original Poster:

1,055 posts

131 months

Friday 22nd May 2015
quotequote all
KTF said:
What about putting the insurance in your partners name if they have a different occupation (assuming you have one)?
They ask the occupation of all..err...occupants.

Sadly. I did ask this question.

BorniteIdentity

Original Poster:

1,055 posts

131 months

Friday 22nd May 2015
quotequote all
The allowance is for remedial work. Demolishing a garage is half of the job!