"Unknown filled ground" - Are A&L likely to pull the plug?

Thoroughbred

I'm hoping to complete my first property purchase within the next couple of weeks. It's a small semi-detached studio bungalow situated in a decent area of Leicester. The mortgage will be with Alliance & Leicester and I'm paying a 5% deposit.

The land search was carried out nearly a month ago which highlighted "unknown filled ground" and some kind of historic sewage works very nearby. The date of mapping for these items is 1930-1955 and the property is about 20 years old.

It was sent away for a professional opinion, but I was told there was little cause for concern as this sort of thing happens all the time. The professional opinion has finally come back saying further action is necessary.

It goes on to say....

"A review of the available historic map data has identified that the centre of the search is located on or within 25 metres of unknown filled ground (the infilling of sludge beds associated with a former sewage works to the south)."

etc...

"In our opinion, from the information we have examined, there is a risk the value of the property could be impaired."

It gives a list of actions which need to be addressed, my solicitor is getting to work on these.

A&L will obviously get a copy of the professional opinion. But are they still likely to lend the money? Assuming everything can be satisfied of course.

I just hope they don't run a mile and find somewhere 'less risky' to lend there money.

MortgageMamma

I don't mean to be the harbinger of doom but it seems likely A & L will get @rsey about this at the very least. They may well devalue the property and offer you a lower amount, but its all down to the underwriters so all you can do is sit tight and wait. I hope it all works out for you, please let me know what happens as I have not come across a situation like this before and I'm very interested.

MM

Thoroughbred

Not heard anything yet. I'll keep this thread updated.

AndrewSmith

Recently had Alliance & Leicester refuse to lend on a leasehold apartment as you had to cross a 0.5m unadopted verge to get from the road to the driveway. This was after a mortgage offer had been issued even though the client had an indemnity policy and a statutory declaration of use.

Methinks A&L have had their fingers burnt in the past with falling or depreciating values due to certain things.

I guess all you can really do is wait and see.

Andy