subsidence help?

monkeydust_2

Bit peeved of need release so here I go...

I had happily exchanged on a property last week and was due to complete next Tuesday – everyone (solicitor + mortgage broker) telling me everything was fine however I find out today from my solicitor that the Abbey (who is doing my mortgage) are expecting a full structural report.

I am a seriously time starved person so I took on a Mortgage Broker to do all the work however they completed missed this point in the offer letter!

Net effect – have to push back the completion and get a structural done. They seem to want a more detailed analysis of a subsidence issue but the valuation + homebuyers report indicated this was not an issue and didn’t suggest any further investigation.

Whos to blame here? I guess underlying me for not reading the offer letter but frankly I am fairly annoyed with the Mortgage Broker since its their job to take care of this end-end, that was what I was sold on!

What’s the worst case here if there is a subsidence problem?

Thanks
Ravi

lynzpower

I guess it all depends on how bad the subsidence problem is. Best case scenario, the survey turns up nothing then you proceed with a bit of a delay.

Or survey shows in worst case scenario subsidence that they are not willing to lend on.

Or could be somewhere in the middle where you appraise whether you want it still but have to negotiate price down to cover remedial work.

Personally, I say, be patient. You dont want to rush into something which will end up like a millstone later.

clutton_2

"" I guess underlying me for not reading the offer letter "" - i guess you have kind of answered your own question here. But, i would have expected the broker to have brought it to your attention. However, move on, get the survey and make a decision when the results are in. good luck.

silvercar

I would have thought your solicitor should have told you that the mortgage offer was conditional on a survey. In fact, I'm surprised your solictor allowed you to exchange without an unconditional mortgage offer.

courtjester

Worst case is recent /on going movement. Most older buildings (and even newer ones) suffer from 'settlement' over the years which is the natural long term bedding down of the weight of the components of the structure on its foundations.

However, subsidence is new movement caused by a new external influence on the building foundations, most frequently growth of nearby trees coupled with extreme drought conditions or broken drains which flush out fine soil particles undermining the foundation.

If the cause of subsidence is removed, the movement will stop, but that is easier said than done as often it is a very lengthy investigation and repair process. The ultimate costs of dealing with subsidence can be expensive and it is essential that adequate insurance cover is in place and can be maintained for the future. Buying a property which already suffers from subsidence should only be contemplated with the assistance of the old insurers (as any new insurers won't cover teh historic damage).

Note that where subsidence is unresolved, it can 'blight' the property making it almost impossible to sell on later. You should seriously consider walking away if the structural report finds current and ongoing movement.