Our dream home turned into a nightmare and left us £45,000 out of pocket after it SANK
A COUPLE’S dream of living on an idyllic houseboat turned into a “nightmare” that left them £45,000 out of pocket when it sank just weeks after they moved in.
Keith Gray and Niall Senior used their life savings to buy the refurbished boat, which had a beautiful oak kitchen, green marble bathroom and even a sauna.
But in January 2024 their dream ended in tears when the vessel and all their worldly possessions ended up at the bottom of a Manchester canal.
Appearing on the BBC’s Rip Off Britain, Keith said: “It just feels like a complete nightmare, but the nightmare is real. Actually the time we did spend on the boat, that’s almost a dream that’s long gone.”
After struggling with Manchester’s high rental costs, the couple had looked to alternative accommodation and found a listing for a houseboat on Facebook Marketplace.
The boat had been recently refurbished and was advertised for £52,000.
Acknowledging they knew nothing about boats, Keith and Niall had a survey carried out, which concluded the refurbishment had been carried out to a reasonable standard.
It did recommended some further repairs, which the seller agreed to carry out.
The couple drew up a contract with the seller and took out insurance for the boat and their contents before moving into their new home in December 2023.
Niall said: “I was in awe of how beautiful it was, it looked so great. I was so excited to see it go into the water and get on it.”
On December 26, while celebrating Christmas with family, Keith and Niall received a worrying phone call from neighbours who were concerned about their new home.
By the time they returned to the canal their boat was submerged in the water at a 45 degree angle.
Within 10 minutes it had completely sunk, with all their belongings onboard.
Keith said: “I think I cried for two hours solid, I literally couldn’t stop crying.”
The couple quickly contacted their insurer but were told that despite the findings of their pre-purchase survey, the boat had been found to be “not fit for purpose”.
The insurer added that the earlier repairs and the refurbishment had been of a “poor quality” and “more serious concerns” had not been highlighted within their survey.
The insurer rejected their claim outright, leaving Keith and Niall with a £45,000 bill to repair and refit their dream home.
Your rights explained
Financial expert Martyn James said he “really felt” for the couple, describing their situation as an “absolute nightmare”.
Martyn, who is part of The Sun’s Squeeze Team, told Rip Off Britain, Niall and Keith had done all the necessary due diligence before purchasing their dream home.
He said the insurer should have asked for an additional structural report if they had felt it would be necessary and recommended they take their case to the financial ombudsman.
Martyn also suggested the couple consider legal action against the sellers of the boat, highlighting that they had a contract of purchase and had been agreed repairs would be carried out.
Consumers can take their complaints about businesses including banks, insurers, finance providers, and pension firms, to the ombudsman for free.
Before taking a complaint to the ombudsman consumers are required to give the business a chance to resolve the dispute.
Once a report is made to the ombudsman it aims to settle it within 90 days.
It has the power to award compensation and if it finds a consumer has lost out financially, it will aim to put them back in the position they would have been in if the financial business hadn’t made a mistake.
It might also decide the business should pay costs and interest on top of this.
The Financial ombudsman can be contacted via its helpline 0800 023 4567 or via email complaint.info@financial-ombudsman.org.uk
Keith said: “Obviously it’s devastating to hear the insurance company declining the claim in full. That was our home, that was our stuff, that was our everything.”
He added: “We went above and beyond to do everything right, to do all the right processes, the right documentations, the right protections. We just feel entirely let down and hopeless.”
Generous friends and neighbours have helped the couple to raise the cash to start repairs and their houseboat has now been removed from the bottom of the canal.
Pros and cons of buying a houseboat
Houseboats can be cheaper than buying a home on dry land but doesn’t come without risks – like the pair found out.
You may be able to get a special type of mortgage for a boat, but it can be more difficult than getting a traditional home loan and have higher rates of interest.
You won’t pay stamp duty when buying a boat to live on, and you can move to a different location whenever you want without having to sell up.
You might even be able to live in a location where you wouldn’t be able to afford a bricks and mortar house.
But space can be more limited, and the value of houseboats can generally go down over time, like a car or motorbike.
A licence which you need from the canal and river trust can cost anywhere between £510 and £1,100 a year depending on the size of the boat.
There are likely to be ongoing costs for maintenance and mooring as well as fuel, a boat safety certificate and, of course, insurance.
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