Can anyone assist Re-Long term unoccupied House Insurance.

[wazzer]

Hi
My mum has been in a Care Home now with AZ for the last 4 years. I am on a defered payment scheme with my local LA until I can sell mums house. I had mums house valued at the time she went into the Care Home at 140,000 and because the house buying interest is so poor at the moment I have reduced it to 120,000 and still very little interest.
I have had unoccupied House Insurance with a major company for the last 4 years and have just renewed it for 3 months only because if I do find a buyer nothing is refundable so I take out the lowest term possible. However, I have been told by the Insurance Company that if the house remains unsold they, by law, cannot insure the house after the 5 year anniversary. Basically, can anyone confirm that this is true?
Because I am my mums Deputy and am acting on her behalf I think there would be no way that the LA will accept there being no insurance on the house as it is protecting their legal charge never mind the Equity Release mum took out in 2003 and their charge so I can see no other option except the house must be sold by next September even at a pittance. I do not know how the OPG will accept that or the local LA but I have no other option if this 5 year rule on unoccupied houses is true.
Has anyone had any dealings in this area?

Kind regards
Ken.

 

[pippop1]

Are you able to rent out the house? The rental could be used to pay the insurance premium and some of your Mum's fees.

 

[wazzer]

Hi
Thanks for your reply.
Renting out the house is a definite no-no, as:-
1 The terms of the Equity Release strictly forbid the letting of the house and
2 Mums Care Home fees are presently £1600.00 a month. Mums pensions cover half that amount and the rest is paid under the Deferred Payment Scheme but there is no way I could get a rental of £800.00 a month to cover the remainder in the area where I live. I would be lucky to get £600.00 a month even if it were possible.

Regards
Ken.

 

[loveahug]

If you use a chartered surveyor to give you a full valuation on the property, that has legal standing and the OPG would probably find it difficult to argue against a proper valuation. They are very amenable to a phone call for advice though. This, at least, will give you a defence should you only be able to sell it at the valuation price.

As to the insurance, it is not a legal requirement to insure a property but nothing is uninsurable (can they quote you which law?), just that the cost may be considerable. Also the insurers may insist on you shuttering the building, which can be costly. Look for specialist insurance on the internet. Could you consider letting the property, if you are on a deferral, are there any time limits on the sale? Again the OPG may be able to advise you on what you should or shouldn't do to secure the best for your mother.

I'm sorry I'm not an expert but have dealt with property over a number of years. Someone more qualified may be along with further advice soon.

Best wishes

 

[Kevinl]

Given that most of the money will be going to the council in deferred care home fees and the rest from the sound of it and the equity release people I'd just give them the keys and tell them to sort it out between them.
They can both sit back leaving it for you to cope with all the problems, insuring, paying the bills (even if they're only standing charges), maintaining it to a certain standard, garden etc. Face it you're not likely to see too much if any of the money from the house anyway, so getting rid now at any price might be the best option. I looked after my Mum's empty house for 18 months, burgled once, 2 pipes leaked one winter and the local kids finding the garden a handy place to drink cider.
Tell the council you'll sell for the first reasonable offer or they can have the keys and sort it out for themselves and by the way it's uninsurable then tell the equity release company the same thing, make it someone else's problem too. Harsh maybe but it's more their money than yours so make them earn it.
K

 

[KingB]

Not sure on the deputy rules - but with EPA the rules on selling property are that permission has to be requested from Court of protection in order to sell at less than market value. I guess by definition whatever you get will be market value since you are having trouble selling it. But you might be wise to retain proof of that in case of later queries - eg proof that you had it on at higher price for such a long time but with no offers etc.

 

[benatha]

Hi Wazzer.

I work for an insurance brokers and there is no such Law stopping you from insuring the property after 5 years. However, insurance companies see unoccupied properties as high risk due to the increased risk of break in and theft. If people in the local area know a property is unoccupied and that it has been for some time, then there is more chance of people breaking in to cause damage or commit theft. The longer a property is unoccupied the higher the risk becomes. This is why insurance companies often refuse to insure a property that has been unoccupied for a long period of time, such as 5 years.

I would recommend finding an alternative insurance company who really does specialise in this area. I hope this helps and all the best.