WWYD - stay put or try to sell

[Siouxandthebadcheese]

Our house has had multiple issues since we bought it 4 years ago. We had a full survey done and the surveyor didn’t pick up any of the issues which have now become very big issues.

Two of these issues we are currently claiming for through our house insurance. For various reasons neither claim has been managed properly, and both been under valued. One of the claims has been going on for two years. The upshot of this is that we are now in the early stages of using an independent loss assessor to try and sort out the mess that our insurers have made. If they succeed, we will pay them 10% of the settlement, or nothing if we use their builders to do the work needed to repair our house. TBH if it gets that far we will probably plump for the latter as despite getting innumerable trades people round to quote for the work, getting quotes has been next to impossible. Builders can pick and choose their jobs round here!

I’m at my wits end with this as the house is now just really unpleasant to live in due to the state of disrepair. The work needed to resolve the problems will very likely require us to move out if it ever gets done. It’s becoming very damp. We have a young child and I have bad asthma. We are constantly ill and I’m sure in part it’s to do with the issues in the house. We never have anyone round because we’re so embarrassed and it’s had an impact on our lives.

Our original plan had been (before the insurance claim issues and COL crisis began) was to put our house on the market this year. This in part to do with school catchments, but also we both predominantly work from home and so are no longer reliant on the transport links our house is in proximity to. We remortgaged last time on a two year fix, and our mortgage is now about to double when we remortgage in October.

The house - problems aside - would be very marketable due to its location. Ours also benefits from a big garden so you could probably extend and still have a decent garden. Most houses on the road that have gone on the market this year have gone on for about £100k more then we paid for ours. Admittedly they didn’t have the issues ours does! Don’t know what they all sold for….but no one in their right mind would buy ours given the state the house is in unless they wanted a big project.

A friend suggested that we try selling to a builder or investor rather than an owner occupier. I don’t know much about this or whether there is any mileage in it in this idea?

Does anyone have any advice? Or should we just stay put it and hope the independent loss assessor comes good? Our parents think we should sue our surveyor but I feel so defeated by two years of shit from our insurers and the house being a mess I just want out as quickly as possible.

Thank you in advance if you read all that waffle!

I doubt you would get anywhere trying to sue your surveyor as those guys always use loads of caveats to protect themselves. Plus you have enough stress on your hands.

Sorry for what you have gone through, it sounds awful. But I think I would try to get to the end of the process before selling as otherwise it's just messy. If you think you have a good chance of winning your case now you have employed an independent loss assessor, keep going so you can eventually sell for more money with the issues having been resolved.

I would want to sell the house after the case has been resolved and start fresh somewhere new.

Speak to the insurance company and explain the damp is a major issue that needs addressing immediately, and would dehumidifiers on each floor de damp the house, and could they sort that out in the interim til their workers get a move on and do the major works required.

You say some houses in your street have made £100,000 - will you have to spend this on something new, or would you be £60,000/£100,000 in profit once moved?

if there is going to be a big surplus of cash in your favour, do your best not to take your eyes of the prize, cos once it’s all sorted and calmed down, it’s amazing how quick we forget!

I'm not sure investors or builders are buying very much right now- I'm sure there are exceptions but it's probably a bad time to try and make a profit on a house because the market is uncertain AND building materials etc are in general very expensive right now.

I can totally get wanting to sell and just wanting to get out and start elsewhere. Can you afford to take a hit on the sale price of the house? How much of a hit? Could you put it on the market and see if you get any bites, whilst you also continue with the process that's ongoing?

We had a full survey done and the surveyor didn’t pick up any of the issues which have now become very big issues.

We had this but some many caveats and suggestion for further survey costing 1000s -we did manage to do work over years and by borrowing to get some done unfortunately you sound in a much more dire position.

I'd suggest first step is talk to local estate agents -see what they say as they should know the local area. I assume you'd need back the mortgage amount left and possible some of the deposit you put in - if they think this is possible I'd put it on the market see what happens. Other option is house auction which is more a gamble and I'd try estate agent sale first.

We rented damp housing staying for financial reason and I suspect it heavily contributed to development of asthma in me and the kids so damp house would likely be making you ill and risking future health.

Would insurance provide industrial de-humidifiers while you wait - as domestic ones and mold spray only do so much?

You mention the possibility of moving out while work is done to remedy the various problems. Could you afford to move into rented accommodation now in order to improve your quality of life while the claims issue is being sorted? You'd most likely recoup the money spent on rent if you were then able to sell the house at full market value.