Has anyone had difficulty selling their home due to subsidence or flood risk?

I have been contacted by a homeowner who lives in an area at risk from subsidence. He has underpinned the house.

The insurance policy excludes the subsidence risk, but he doesn't mind this as he regards it as perfectly safe now.

But he is trying to sell it and the banks won't approve potential purchasers for a mortgage as they want subsidence cover.

Presumably people affected by flood risk have the same issue.

Any ideas for him?

Is he restricted to selling the house to cash purchasers?

Brendan

If he has the house underpinned already why doesn't he get a structural engineer to do up a report on it. Go into a insurance broker and get them to get to locate a insurance company that would provide the cover. Then pass those details onto the potential purchasers?... He actually sounds like a good risk to take on seeing as he's got the work done already...

Hi lucozade

Good idea, thanks. Is that a theoretical position, or do you know has this actually been done?

I watched a programme yesterday on Homes under Hammer on BBC1 where the situation arose of the underpinning etc. in a house in the U.K. They said that no mortgage provider will ever provide a mortgage in cases like this. The guy had to pay cash. In that programme they will usually mention any other options available. Two estate agents also mentioned that cash buyer was the only option when they were giving their final valuations.

In the case of the recommendation made above I would be inclined to maybe ring a few brokers and seek their advice before employing the structural engineer.

Hi Brendan / Sue Ellen,
Yes it was theoretical Brendan.. Good suggestion Sue Ellen..