Query re selling / subsidence

figgyroo

I am considering putting my home for sale. When I purchased it I was told it was underpinned a few years before (subsidence caused by a leaking pipe or something like that). At what stage should I let prospective buyers know about this, when they view the house or after they put an offer in?

Debt_Free_Chick

Up to you.

It will be disclosed on the Seller's Information Form - by which time your buyers will have incurred costs and might be a bit miffed to find out "so late" in the process.

Do you have any paperwork relating to the work done? How long ago was it done?

figgyroo

From memory it was done around 1999 I think. I had to pay for the certificate of structural adequacy to be transferred into my name when I purchased it. I have lots of paperworks (diagrams etc) relating to it which make no sense to me. Thing I've never understood is I was having work done on the bay windows which involved digging down and the builder told me that it hadn't been underpinned! Its never bothered me too much as there are no signs of further movement.

Is this something that is likely to put buyers off completely?

Debt_Free_Chick

Very many would be put off, yes.

I wouldn't - but I'd want to know more and I'd prefer to know upfront - as would Doozergirl, I reckon

I sold a house which had been underpinned, with the work finished only weeks beforehand. The kitchen was a shell and sold as "blank canvass for your own design" :rotfl:

BUT - that was in 2003, although I got full asking price for it.

TBH, too many buyers think that they're buying something brand new off the shelf and if they have an excuse to cross your property off the list, then they'll do so.

How desperate are you to sell?

figgyroo

Well it didn't bother me when I bought it but neither did the fact the house was a complete wreck. As I see it a house that has been underpinned is no more likely to have structural problems in the future that a house that hasn't. I do remember some people were horrified when I told them about it and told me to steer well clear!

I don't particularly want to sell but am thinking I'm going to have to. I originally bought the house with someone who has since moved on and I bought their share. I have been managing ok but have recently had a paycut at work and my mortgage payments are due to increase in May. Was hoping to buy somewhere smaller to decrease my mortgage really.

Debt_Free_Chick

Lodger?

Not ideal, I know, but would it tide you over for a while?

figgyroo

I have considered that as I had a friend lodging with me temporarily which was fine. I don't have anyone I know that is currently looking for a room to rent and I really don't fancy the thought of sharing my home with a stranger.

Richard_Webster

This is a hard call, but on balance it is better to tell potential buyers the truth when they come round to view. Have a file with all the papers in that they can glance at - it won't mean much to them but they will at least feel you are being honest and open with them.

When they contact a solicitor and say that the sellers told them the place had been underpinned and they had a file of papers about it, the solicitor will probably say that he will need to check them, but if all the right papers are produced, there shouldn't be a problem.

More worrying to find out after the buyer's solicitor gets the papers and he tells the client. Then maybe the buyers think: "Oh, that's why it was cheaper..."

anselld

Debt_Free_Chick wrote: »

It will be disclosed on the Seller's Information Form

Presumably that depends how honest the seller chooses to be since the seller's information form is completed by the seller. I know it would be dishonest and there could be comeback from not disclosing but how would anyone know from any independent source?

Richard_Webster

Quote:
Originally Posted by Debt_Free_Chick
It will be disclosed on the Seller's Information Form

Presumably that depends how honest the seller chooses to be since the seller's information form is completed by the seller. I know it would be dishonest and there could be comeback from not disclosing but how would anyone know from any independent source?

I had a client where nothing was disclosed on the forms and no reason to suspect any problem with subsidence. I told him to arrange insurance for the property so he could put it on risk when contracts were exchanged, i.e. have it already to go at that point.

Client forgot and rang potential insurers on the day of completion and was told they wouldn't insure because the property had been the subject of a subsidence claim. He had to pay a lot more to get insurance from a specialist company all because he didn't follow my advice. If he had, we would have gone back to the seller's solicitors before exchange to ask for all the details. Insurers evidently exchange info about this kind of thing.

Moral, if buying, is to check insurance is available well before exchange is likely..

alisonp_2

figgyroo wrote: »

I am considering putting my home for sale. When I purchased it I was told it was underpinned a few years before (subsidence caused by a leaking pipe or something like that). At what stage should I let prospective buyers know about this, when they view the house or after they put an offer in?

I dealt with one recently which had been underpinned many years ago - all the information was disclosed by the Sellers very early on and I then advised the Buyer to discuss with the Seller the possibility of taking over their insurance - this was the actual insurance company that dealt with the claim. The Sellers were happy to do this and the insurance company agreed to continue with the Policy with the new owner. As long as the buyer's lender is happy with this then this normally sorts matters out.

There is also a Company that will visit a property to carry out an inspection on underpinned properties before providing insurance - they charge a fee of about £150 or so - if they can't insure they will refund this fee, less a small administration charge - cant remember their details offhand but they would be found easily on the Internet.