Selling an Uninsurable House

Building insurance can be an important way to cover costs for damage to your home, and you might find it harder to sell an uninsurable house.

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Your top questions when selling an uninsurable house

✅ What types of properties are considered to be uninsurable?

Building insurance policies cover costs you might face if there is major damage to your home’s structure. A house, flat or any other type of freehold or leasehold home is deemed uninsurable if there’s some type of potential risk of physical damage to the building that insurance companies believe would be too expensive to cover should that damage eventually happen.

✅ Are homeowners required to purchase building insurance?

There are no general requirements that every homeowner in the UK must buy a building insurance policy, but it can be harder to sell a property that does not have one. Also, some leasehold properties like blocks of flats might have conditions in the lease agreement specifying that the freeholder owner is required to obtain an insurance building for the building.

✅ Why does the lack of an insurance policy make selling a home harder?

One reason is that mortgage lenders will typically require building insurance for any home someone wants to buy, and they will refuse to grant a loan for the purchase if there is no such policy. Another reason is that potential buyers might be reluctant to make an offer because they worry about costs and other problems from the issue that led to the home being uninsurable.

✅ Will I still be able to sell my home even though it doesn't have an insurance policy?

Yes. Although the lack of an insurance policy might eliminate some potential buyers, for example those that need to get a mortgage to pay for the cost of purchasing your property, you have other options. One solution is to get in touch with a quick buying company like LDN Properties that can make a fast and fair offer even for an uninsurable home.

✅ How much Capital Gains Tax will I have to pay on the sale of my uninsurable home?

You might not have to pay any tax if you only break even on the sale, which means selling at a price close to what you first paid for the property, or if you sell at a loss compared to the original purchase price. If you are required to pay Capital Gains Tax, it will typically be assessed based on how much profit you make on the sale of your home compared to what you initially paid for it. Remember to obtain professional tax advice before making any decisions.

✅ What commission will I have to pay on the sale of my uninsurable property?

If you sell your home to a quick no-fee buying company like LDN Properties then you won’t have to pay any commission, and the same is true if you sell the home without any third party help. But if you sell your property using an estate agent or auctioneer then you will have to pay them commission and this will add to your costs as it’ll be taken out of the final sale proceeds.

✅ What is the speediest way to find a buyer for my uninsurable home?

The fastest option for selling any type of property is usually contacting a quick buyer such as LDN Properties because they can complete the entire process of purchasing a home within a handful of weeks. Selling on your own or through an estate agent can take more than a year, and selling at an auction may take many months for all the various steps to happen.

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