buying a property in a flood zone

[buttheydo]

Hi all,

I am looking to buy a small terraced house in my town. I have separated from my husband and am thinking I could live in this new place, and potentially rent it out if I decide to move later.

I live in an area that was famously flooded in 2012 and then in 2016. This potential house is in the actual flood zone. I was part of the clean-up effort so I am familiar with the extent of the damage.

I wasn't even going to look at the place but it's right near where I live so I thought, why not?

Now I am actually considering it because:

1. It was bought on auction after the last flood and extensive defences have been installed, including a sump pump and flood gates.
2. The flood water all diverted to the cellar.
3. The EA discussed other properties she'd recently sold on that same street and she confirmed that they'd been able to get mortgages and insurance.

Obviously would need to confirm the above in writing, get reports done, ensure that mortgage can still go forward, but if that's the case then would you go for it?

You can tell I'm very tempted. Equally happy to be reassured or talked out of it.

Nope I would never buy a flood prone property.

Maybe think very clearly about what's attracting you to it?

If you have an issue with affordability where you want to live and it's ticking that box, fine, but I'd be less concerned about what might happen while I was living there, and more concerned about resale. You don't want to be stuck with a flood prone property if you need to sell in a timeframe, and flood stuff has an unfortunate habit of not remaining predictable. You'll be particularly screwed if a neighbouring area develops a flood problem and the engineered solution to that sends more flood water in your direction (otherwise known as the law of unintended consequence!).

Have a good look around at alternatives before committing, maybe, and see if its allure lessens a bit in the process.

I always avoid these but if you are interested then phone insurance and see what and if they will quote. You can check on Land Registry to see if similar houses have had mortgages that have sold recently.

But conditions can change, a further flood could mean no insurance and therefore no mortgage and you can't sell it. If you can get it very cheapily , can afford to pay out flood damage yourself, can afford for it not to sell then you can consider it.

Thanks these are very good points.

I just found out it sold at auction for £34K a year ago (after the latest floods). They're asking for £80K now. Okay it has the flood defences and new carpets etc. since then but YIKES. £34K

I would be putting nearly all my capital into it and taking a fifteen-year mortgage. Yeah, starting to be dissuaded.

My mum was a broker briefly and the excess was £10k for flood damage in a particular place that was extensively flooded but had defences installed. It's not just whether you can afford the insurance it's whether you can afford to claim if the worst happens.

Whoa!!!

And then you figure this would be my first (and possibly only) property purchase?

No, not worth it.

Insurance and possible structural issues aside, the emotional upheaval of being evacuated (done it twice) let alone actually being flooded isn't worth it.

Yeah, and if I end up renting it out, and then the poor renters have to deal with being evacuated? No way.

I know a landlord who had to put his tenants into a hotel for a few weeks while a minor flood affected his house. Ouch. It's one thing to make do yourself in a partly uninhabitable house but absolutely not to be considered if you want to rent it out IMO