We are in the process of buy a flat, which is in a converted house, and about 100 years old. There are 4 flats in the block, with the share of freehold split across them.
As there were 4 flats in the converted house, our surveyor said that a full structural survey would be very expensive, and almost impossible to complete, as access to all parts of the building would be restricted therefore we opted for a homebuyer's survey.
The survey took place yesterday, and on speaking to the surveyor, some issues have come about.
There are some fairly minor ones concerning missing roof tiles etc, but the one which has made me very nervous about proceeding with the purchase is the mention of an insurance claim which has just been completed for the flat next door (which is in the same house) and the hallway.
It relates to some cracking which started in the walls 2 1/2 years ago, and the couple who live there put an insurance claim in.
The insurance company called in 3 separate structural engineers over the course of the next 2 years, and monitored the cracks. They said that underpinning was not required, and work on replacing/repairing some interior walls and redecorating was required.
In the last 3 months, the claim went through, and all the work on the next door flat and hallway has now been completed.
The reasons for the cracks appear to be:
- The house has clay foundations (as many London properties do in that area), therefore hot weather over the past few years could have caused it
- There was some shrubbery and a tree which have since been treated/removed
Our surveyor said that the work was remedial work, and that it required superficial work, such as replastering/painting etc, however our flat was unaffected.
When he looked through our flat he noticed 2 hairline cracks which he also said were superficial, and would just need a lick of paint, and warned against insurance claims for such petty work, as it does not look good on insurance record.
His only recommendation from the homebuyers survey was that we (the block), stay with the same insurance company going forward, to prevent any future insurance companies rejecting any future claim, and claiming the damage occurred before the were the insurer.
He also said that as we are paying for the insurance through the service charge, we should get a projection on future increases in the insurance costs.
I asked if this work would jeopardize the lender underwriting the loan, and he said it was "a storm in teacup, and not a problem"
Due to these insurance claim/recent ?subsidence' my main concerns are as follows:
- will this work/claim affect the price of the house, and its resale potential
- What are the chances of this recurring
- What's the chances of the house requiring underpinning in future (the surveyor said it's impossible to say, and this risk exist with any house of this age in that area)
- If underpining/future work is required, how can we protect ourselves against any costs
I also am considering getting a second opinion, or getting a surveyor to go through the 3 structural engineering surveys which have take place over the past 2 1/2 years - is this worthwhile?