underpinned house advice needed please
I've had an offer accepted on a house which was underpinned in 1991. I was informed about this after making the offer but the vendor said that the work had not affected their buildings insurance premiums and that they had been free to shop around for the best insurance deal.
I have had a homebuyer's survey done that says there is no evidence of significant structural problems and I am currently attempting to obtain buildings insurance quotes . The problem is that, contrary to the information from the vendor, I have discovered that apart from a few specialist brokers no insurer will quote on a property that has been underpinned. The specialists require structural surveys and load the premiums by several hundred pounds/year.
It seems that the usual practice is to adopt the vendor's insurance policy. But in this case the current insurer is not the one who paid out for the underpinning work and is not prepared to transfer the policy because of this.
I am tempted to pull out of the purchase and look for another property because: a) of the ongoing cost of loaded insurance premiums and b) the property may be difficult to sell, especially if the future Home Information Pack needs to be explicit about historical underpinning work and potential insurance difficulties.
However, looking for another house is extra time and effort and I have a buyer for my current house who I may lose if the process takes too long...
If the property was sold below market value to compensate for additional insurance premiums/structural surveys and the lack of opportunity to shop around for insurance this could attract potential buyers when I come to sell on (as well as encourage me to complete the purchase now).
I have no idea what the reduction ought to be: 1%? 5%? 20%? Does anyone have an opinion? Or should I just walk away? Thanks in advance for any replies...
Last edited by sealover; 01-10-2009 at 07:56 AM.
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01-10-2009, 07:53 AM
