We have exchanged contracts and waiting for completion in less than two weeks time. However we only found out yesterday that the house was extensively damaged by the flooding back in 2014 and a massive insurance claim was paid out. They hired a structural engineer to check what was required to fix all the post-flooding issues (he discovered serious foundation distortion btw), but they refused to carry out suggested remedies and only covered minimal cosmetic work.
We specifically asked questions about flooding before exchange but they responded with no to any damage. (We loved the house but with a suspicion from our surveyor we decided to dig deeper to be sure.)
I just wrote a brief factual account of what happened and my question is if I have legal authority to rescind the contract and get the deposit back. We have already spent loads of money on legal & research fees on top of paying the deposit at the exchange. I don’t expect the sellers to pay any of incurred costs but I want my deposit back.
I’m distressed and upset with the situation and also worried at the prospect of legal implications. I’d appreciate If you could share any experience or advice on this...