Hi, can anyone offer an opinion on the following.
Would a bank repossess a house that currently has subsidence or are they likely to wait until the insurance work has been carried out.
Insurance claim has been ongoing for a number or years btw.
I imagine it would depend on how much/what proportion of the value of the house is owing and what the land is worth without the house, i.e if they could sell the land as a building plot and re-coup their money. I expect they make decisions on each individual case and don''t have hard and fast rules.
The mortgage outstanding is currently £145k, although there are arrears of approx 6k at present. The house, once work has been completed would sell at approx £199k on the current open market The house is end of terrace so not sure if it would be sold as "land".
I believe that as you have a claim in subsidence with an insurance firm that a bank cannot claim your claim in subsidence as that is a claim basically against a non party.
The bank may well want to repossess the house but in my view they cannot mix one claim against another i.e the value of the house in a position of subsidence against your claim in insurance against subsidence.
These issues are separate and your claim of subsidence is personal and nothing to do with the bank as it was you not them that took out the insurance.
Btw it was a long time ago but I used to be a finanancial adviser in a family business involved with insurance. During that time I used to help out with personal lines (car insurance and house insurance) and commercial lines (commercial insurance).
My interest and my expertise was in personal and corporate pensions, life insurance and life assurance but I also helped out with all other general insurance issues as I was a partner in a second generation family firm; so I was involved even as a child with many partnership discussions both in terms of insurance but also in terms of estate agents as at one point my father had both.
I am also involved right now in a complex combined claim in financial remedy in UK Courts.
I would advise you to get out your insurance policy on the subject of your claim and to take the advice of your insurance broker.
Trying to make this clear that even if the bank went to repossess they cannot claim the uplift (so the difference between the pre subsidence and the post subsidence) as it was you (and presumably your spouse even if the insurance was in sole name) .
If they attempted to, maybe let them, that is an abuse of process.
Always with the caviet that you need to refer to the terms of your insurance - make sure that you have not committed to insure the interests of a third party (in this case the bank).
Even then I would possibly argue that this is not a valid contract that a court should enforce. Contract is one of the things that Judges have discretion to change by way of Common Law.
If occurs to me that you may not have a broker but may have gone to an insurance company direct (maybe on line).
However, I believe that there is a principal here which is very important obviously to you and your family and departing spouse.
The mortgage is with the same bank as the house insurance provider. Not sure if this makes any difference.
The insurance claim has been ongoing for the last four years plus and the work still has not been completed. I am aware that any deficit from the house sale will have to be met jointly by myself and my spouse.
The issue i have is how long the situation has been ongoing and i would just like to resolve all financial issues with my stbx as soon as possible. The situation currently is that she lives in the house but will not make the entire mortgage payments (wants me to pay half) but she will not market the house. Obviously the situation we are in can not continue.