Found out devastating news about house we are about to buy, Should we pull out?

[Welikethemoon]

We were all set to move, got everything in place, went for second viewing to show our daughters thier new house for the first time. Owner was there so I asked her about the flood risk which has come up as surprisingly high on the survey. She looked shocked and said she thought we knew it had been flooded twice in last 10 years but flash flood rain water run off and also before she moved in. She had instructed estate agent to tell everyone who viewed. We have had the offer accepted since April, estate agents just told me, sorry they "forgot" to tell us. Now don't know what to do. Thus was supposed to be our "forever" home, that had everything we needed. I have a very specific list of things I wanted and this ticks all the boxes, there us nothing else currently on the market that comes close. It's a significantly bigger mortgage than current place. I don't want to move again after this. Seller has said she has put in extra drainage since the last flood, but it hasn't been tested in similar conditions since so no guarantee it would work. Plus with climate change its more likely to happen.
Husband still wants to move, I'm not so sure. What would you do? AIBU to pull out now, risk losing our buyers and wait for a better house to come on the market?

TA6 is standard though, and a refusal to complete it would be a red flag to a conveyancing solicitor. A buyer also has redress if a seller completes a TA6 question dishonestly - knew that from a house sale a couple of years ago, but admit I googled whether the EA was responsible for disclosure and the answer came back as not unless the flooding was recent - wasn’t specific about what recent meant.

Having just read your opening post again, you don't actually have a mortgage offer do you? The information that has come to light must surely affect how much a mortgage company would value it at and therefore how much it would lend.

In any case, the new information should also affect how much you would pay for it, resulting in a revised offer downwards by a substantial percentage, even if your husband was mad enough you were to proceed.

No, don't but it!!

My nan's house flooded many, many years ago when I was a young child.
Years later I can recall the stench of the water and the thick sludge left behind when the water subsided. Grim.

I'm quite knowledgable on houses and flooding (having been severely flooded x3 in 4 years) yes you can get house insurance its under written by the government but you have to prove that there has been a house on that site for a period of time which off the top of my head I cant remember, so for example if the house is only a few years old and there had not been a house on that site before you want get insurance. What you will struggle to do is raise a mortgage most lenders wont let you because there is a risk of the house either being very damaged and thus not liveable in for a prolonged period whilst its under going repairs or even worse it may not be repairable thus worth nothing.
Despite being flooded three times in a moment of madness we nearly bought a stunning house in am amazing location, although it hadn't actually ever flooded it was in a high risk area for flooding, on the blurb produced by the estate agent it actually stated cash buyer only because of the flood risk luckily we were out bid for it!! The house we bought instead definitely wont flood.

Yes we do, mortgage application is complete and we have an offer

Did the mortgage company do a desktop survey or an actual visit? I doubt the mortgage company are aware of the previous claims. Ring them and find out.

Any mortgage offer is subject to appropriate insurance in place by the date of exchange, though.

I would be expect them to pull it when they get the solicitors report.

@NoSquirrels you said that you have had no issues with insurance, but then you haven't had to ask them to pay out any insurance on your actual house? If you had, and you knew about the risk of flooding when you bought the house but hadn't told them, then they could legitimately refuse to pay out at all. If you had told them about any known risks, ie your garden in this instance, they might well have increased your premiums to a very high level.

@Welikethemoon is it possible for you to ask any home insurance providers about how much they would be likely to ask for in premiums, for a house similar in age and build to your potential one, and one that has also had the same amount of flooding as the one you are contemplating?

Also, do you know of any land engineers (sorry, I don't know the correct terminology you this, I don't think it would just come under arquitect, as I think it would have to be a more in depth - no pun intended - study) who could advise you on what, if anything, you could do to stop, or at least drastically reduce any future flooding of the property?

I think the answer to both of those questions could well show you and your 'reluctant to pull out of this sale' DP, that there is no sensible choice, you will need to forgo this house. I think that this is probably why the seller instructed her Estate Agent to tell any potential purchases up front about this problem, as she did not want this to happen at this later stage. She has probably, and presumably, already spent money on her next purchase (unless it is the sale of a deseased person's property).

Good luck OP, I hope that there is a not too expensive way around this problem, and that you do get to buy your - in every other way -very suitable house. 🤞💐

£300 sounds rather low. Was that just buildings insurance or buildings and contents

I would think when the searches come back they will reveal the flood risk and the solicitor will be obliged to inform the lender. You will probably find your offer is withdrawn or put on hold pending further investigation. This happened to us when purchasing and we were not borrowing much either (a lower deposit/amount of equity increases your risk to the lender so they will be more thorough). You will probably have the decision made for you.

Unless things have changed in two years the form is not completed before putting it onto the market. The buyers solicitor sent us the form via our solicitor at around the time that searches were made. It had to be returned, completed before exchange.

I have had the same experience as @Comefromaway When we sold my Dear Mum's cottage after her death, we were sent that form to fill in after we had accepted an offer for her house.

This would come up in surveys, anyway. It's annoying but not devastating. Part and parcel of house buying.
You're lucky to find out relatively early. Don't buy it. I feel sorry for the person trying to sell.

The OP only got the survey last week. She didn’t sit in the info she asked the seller about it. What should have happened us the solicitor should have flagged it up.

My solicitor flagged up a mineshaft in next door but ones garden which necessitated an extra report.

Absolutely no way

@GemmaEdKitten the solicitor won’t know unless OP sent them a copy of the survey, I expect they will flag it up when the searches come back.

The offer was in and accepted in April, it’s now July, and you should have had the TA6 by now - it’s usually one of the first things you receive. I noticed upthread that you said you hadn’t had much experience as a house buyer, so a piece of advice. Keep on at your solicitor - upthread somewhere a poster has provided a link to a timeline for what should be happening and when - take note and start nagging.

Good point - a lot of people assume that a physical survey will be carried out if a mortgage is required. It’s not. Our last buyer needed a mortgage and we expected to be contacted about a surveyor. It was done online.

Yes, I thought that. The solicitor does the conveyancing - the survey is a separate issue outside the remit of the solicitor. This is why the TA6 property information form should be scrutinised by buyers, as this should give information about major issues - specific questions about flooding and if they’re left blank solicitor should flag up. If the seller fails to disclose, the buyer can take action against them.

The searches will reveal the flood risk but not that the property has actually been flooded unless it’s a matter of public record.

It would be a deal-breaker for me. It's going to happen again, it's just a matter of when. No thanks.

@Rosscameasdoody yes good point. This is where the TA6 will be invaluable. OP I suggest you flag it with your solicitor regardless and ask them if they have a copy yet that they can send you.

Apologies you're absolutely right. I was thinking of searches, but irrespective any solicitor worth their money would flag this in earlier paperwork (which I generally thought buyers read too). I tend to think until exchange a house isn't yours. It may be redeemable, don't panic, but clearly worth more investigating.

Please think about this carefully OP. No matter how much you want the house and think of it as your forever home, there are going to be problems if you go ahead with this. Even assuming that your mortgage provider is willing to proceed, think about the real cost of insuring - both buildings and contents. Think about what would happen if it flooded again - the loss of personal and treasured possessions - is it worth it ? Also please consider unforeseen circumstances - everyone thinks their next house will be their forever home, but you haven’t got a crystal ball. Look at the doubts your having now, and imagine trying to sell this house further down the line, and a prospective buyer having the same doubts and possible difficulties with financing and insurance. I could prove very hard to sell and you need to protect yourself.