Subsidence- advice please!

By all means put in the lower offer.

The EA is probably unaware of the structural problems and no-one will buy a house for more than it's worth - so nothing to lose.

Are you getting a mortgage on the property? If so, you'll need to check with the lender that they are happy to loan on the building in it's current condition. Will you be funding the repairs?

It would be far easier for the vendor to get the subsidence fixed as it will be an insurance job. It will be difficult - or probably impossible - for you to get the work done. Firstly, you don't have insurance. Secondly, you won't now get insurance as you will have to declare the existence of subsidence; thirdly, you're unlikely to get a mortgage for the full asking price. Even if you pay £100k, you would then need to fund the cost of putting the subsidence right.

I don't often say this but .... I'd be inclined to walk away. It will take the vendor months - possibly 12-18 months to have all this sorted via insurance. The best he can hope for is a cash buyer who will do the subsidence work and who adjusts the price accordingly.

I agree with Lincroft. However, if you do buy it the vendors ought to transfer the benefit of the insurance claim with the sale of the property. That way, you can bid more. Whether your lenders will play ball is another matter. Future insurance could be expensive, too.

I would imagine it would need to be revalued, what deposit do you have?

Hi dottie - I'm also a FTB and by no means an expert, but I would think:

dottiepeas wrote: »

This is abit of good news I think?...though does anyone know how long the whole insurance claiming process will take?..as someone on here said 12-18mths, but the EA said it should only take afew weeks??..and that I should be able to complete/move in within 6 mths? (He says the work could be carried out whilst the legal work was in progress)

Good news - yes, as it would sort the potential problem. Ensuring all the work is guaranteed etc etc.

Is the house vacant? If not I suspect it would end up taking a lot longer than a few weeks by the time the procedures are put into place. If it is standing empty this may be a different situation.

Also, mortgage wise- now that the insurance co of the vendor could carry out the repair works- would they still lend the full amount on a property with abit of subsidence?

I guess this is at their discrepancy. Call them, quote your reference and specifically ask. Also ask for them to make a note on the system, and if possible send you a letter in writing (if they will, stating that subject to quality of work / re inspection they will be willing to lend you the money).

And, what would happen with the valuation? As the valuation they did was £100k based on current state. Would they send another surveyor round to value the house again once repair works have been completed?

I would think so. If it was yourself selling, and you carried out this 'incovenience' to put the property to a sellable state for mortgage purposes it would be valued accordingly. However, don't forget that it also depends when the work is done. If it is completed in a year's time - the property may have picked up and be 'worth more' accordingly. Also, fixing such problems may incurr another problem potentially - I'm just thinking of potential scenarios. You will get what you pay for so to speak. If it costs 30k, it might put that 30k on...it could be more...it could be less. What does your valuation state it would be worth with all work done accordingly?

Sorry for lots of questions!..we're ftb!.and definately have no experience of buying a home, let alone a home with subsidence/mortgage issues!!

Thanks very much!!

No worries.

Another thing to add though: when shopping around for your own insurance, you will most likely be asked to declare any known issues of subsidance etc in the past. Declaring this can and most likely will limit your options. Maybe get some quotes now just in case?

Good luck!