Implications of Buying a House with Subsidence / Settlement Problems?

AdamC_2

Hi all,

I've just had a Structural Engineer tell me my potential house purchase is suffering from subsidence/settlement, with an estimated rectification cost of around £15k. I'm now to renegotiate with the Vendors but I have other concerns and was wondering if anyone could comment...


1. It's a cash purchase for me, but if I sell later on would a potential buyer be able to get a mortgage, even though the problem was fixed? Or maybe they'd be restricted to a lesser percentage amount?

2. Buildings insurance. Will I be quoted ridiculous rates even when fixed (well, more ridiculous than normal...)

3. Would future purchasers need to be advised of the historical settlement/subsidence problem (again, even though it would, by then, be fixed)?


If there are any other issues I haven't considered, I'd be interested to hear from anyone with experience. Like "it's so much hassle you're better off looking for something else"...

Many thanks

Adam

maninthestreet

Settlement is a far less serious problem than subsidence. Buying a house with on-going susidence that you will have to correct is normally not considered a good move. What is so special about this house that makes you want to buy it??

AdamC_2

Thanks maninthestreet. It's the usual 'good location, not the best house in the street, nice plot' scenario at what I think is a decent price (based on what neighbouring properties have sold for over the last few years). It needs about £100-130k spending on it and will end up a nice house, but I'm fearful that a black mark on it's history will forever be an albatross around its neck.

The "Is it settlement or subsidence?" question is difficult as it's been lived in from new (50 years ago) and has never had any work / redecoration done to it, making it difficult to ascertain if it's on-going (the reappearance of cracks after remedial work / redecoration would have suggested the more serious scenario).