Property Purchase in High Flood Risk Area?

by Readers Question

10:11 AM, 25th February 2021
About 2 months ago

Property Purchase in High Flood Risk Area?

Make Text Bigger
Property Purchase in High Flood Risk Area?

Hi Everyone, I am currently in the process of purchasing a house as a buy to let investment. However, the environmental report has come back and indicated this property is in a high flood risk area.

I had a conversation with the vendor, and he confirmed the property had never been flooded before, but the properties on the other side of the street has. In addition, the flood gate and flood wall has been installed to each property in this area by the city council a couple of years ago.

I also checked landlord insurance, it looks like there are only 3 or 4 insurance providers and all charged at a premium.

Hence, I am not sure what steps shall I take next:

1. Continuing with the purchase
2. Give the vendor a revised offer price
3. Stop the purchase due to the flooding risk

Any suggests are welcome or anyone with similar experience?

Many thanks,

Phoebe

Comments

Neil Patterson

10:16 AM, 25th February 2021
About 2 months ago

Hi Phoebe,

Flooding in this country only seems to be getting worse year-on-year, and personally I would not purchase near water or in a flood risk area now.

DSR

11:31 AM, 25th February 2021
About 2 months ago

unless you plan on digging a moat around it or fitting it to stilts, pardon the pun, but I wouldn't touch with a barge pole!

Your insurance will go up each year, maybe even uninsurable after a big flood/claim. You will be responsible for rehousing a tenant while works are carried out, and you have to declare to incoming tenants....why bother???

JB

11:38 AM, 25th February 2021
About 2 months ago

Run from this while you can. Its only going to get worse.

John

13:38 PM, 25th February 2021
About 2 months ago

Do not buy this property. Of course the vendor will say his be property has never flooded because he wants you to buy his house. I made the mistake of buying a property in York that I was assured hadn’t flooded and lots of anti flood measures had been installed. All lies of course. The end result for me 3 major floods in 5 years, enormous costs, struggles to get insurance and then only at extortionate rates that the mafia would have been proud of. I eventually managed to offload the property but not before years of worry, stress and regret at my own stupidity.
John Webb

phoebe

18:40 PM, 25th February 2021
About 2 months ago

Reply to the comment left by John at 25/02/2021 - 13:38
Hi John,

Thank you for the sharing your experience and sugguestions.

phoebe

18:41 PM, 25th February 2021
About 2 months ago

Reply to the comment left by Neil Patterson at 25/02/2021 - 10:16
Thanks Neil

phoebe

18:42 PM, 25th February 2021
About 2 months ago

Reply to the comment left by RL at 25/02/2021 - 11:31
Thanks RL

Mark Weedon

20:48 PM, 25th February 2021
About 2 months ago

There is always a solution that a good insurance broker will find.

With my property owners hat on I would agree. Do you want to buy a problem?

phoebe

14:52 PM, 26th February 2021
About 2 months ago

Reply to the comment left by Mark Weedon at 25/02/2021 - 20:48
Thanks Mark.
Agreed, I have spoken a couple of insurance brokers and only one of them came back with reasonable quotes.
Now the valuation report has came back with mortgage offer.
Hence I am unsure now if I should go ahead with purhcase but renegotiate a new price or should I withdraw the purhcase completely?

David

18:30 PM, 26th February 2021
About 2 months ago

This would not make a suitable buy to let if it is at risk of flooding.

1 2

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER

How to triple your rental profit with HMOs