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
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EPC score is a moving target and a joke?
Member Since February 2011 - Comments: 3453 - Articles: 286
10:16 AM, 25th February 2021, About 5 years 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.
Member Since September 2018 - Comments: 3514 - Articles: 5
11:31 AM, 25th February 2021, About 5 years 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???
Member Since May 2017 - Comments: 763
11:38 AM, 25th February 2021, About 5 years ago
Run from this while you can. Its only going to get worse.
Member Since January 2021 - Comments: 29
1:38 PM, 25th February 2021, About 5 years 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
Member Since May 2018 - Comments: 8
6:40 PM, 25th February 2021, About 5 years 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.
Member Since May 2018 - Comments: 8
6:41 PM, 25th February 2021, About 5 years ago
Reply to the comment left by Neil Patterson at 25/02/2021 – 10:16
Thanks Neil
Member Since May 2018 - Comments: 8
6:42 PM, 25th February 2021, About 5 years ago
Reply to the comment left by RL at 25/02/2021 – 11:31
Thanks RL
Member Since April 2014 - Comments: 36
8:48 PM, 25th February 2021, About 5 years 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?
Member Since May 2018 - Comments: 8
2:52 PM, 26th February 2021, About 5 years 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?
Member Since October 2020 - Comments: 1156
6:30 PM, 26th February 2021, About 5 years ago
This would not make a suitable buy to let if it is at risk of flooding.