Subsidence Advice

lazygoose

lotto-dreamer wrote: »

Not quite true - as long as it can be seen to have been resolved satisfactorily it will not be a problem. In this instance it looks as though it will be resolved ok anyway.

Unfortunately, solicitors dig up a lot of information through searches, property information forms etc - so it would be hard to hide. Not to mention that it affects a whole building not just this particular flat. Provided all is ok when it has been sorted out - it should not put off potential purchasers.

Depends on how serious the subsidence is whether it would be an on going problem

i.e. TREE.

Not all subsidence is terminal, but there is a lot of work convincing buyers that all is well.

Typical depreciation 15% below market value.

Not even underpinning is guaranteed for more than 15 yrs. some less than that.


There was a news item about an old chap that bought his council flat, the council

had to do some major repairs to the concrete, and they billed him because he was no

longer a tenant. He couldn’t re-mortgage because he was a pensioner and had to sell

below market value, and move in with his son’s family.

I agree,Solicitors are paid to dig up problems. Just don't add to them.

I viewed a property that had a file 4" thick with the owner pleading with the insurers to

pay the builder an outstanding amount, that the insurance company disputed, because of

work not ticked off and checked. The builder would not give the note of guarantee.

So the vendor was in a complete mess, and I could read every letter he corresponded

with Solicitors builders and surveyors and insurance people...



very off putting.

rizla01

Firstly, I think that you should just go ahead with the new property and not mention anything to the lenders. If anything is said just plead ignorant. from what I read subsidence has not actually happened yet but is likely if the measures that are being taken dont happen.
Move to your new house and be happy and any problems that follow regarding reselling this house will be a long way off (hopefully) and may not even happen.

If the remedial work prevents subsidence from happening to your house then that will be that. I there is any subsidence then your property value will almost certainly be affected but once tenanted you could always sell your house at auction, to an investor.

My advice - Stop worrying and just continue 'as was' and let your insurance pay for any work to be done less the amount that you are liable for (If any)

sticher

We have some subsidence to the garage attached to our house. This was discovered by the surveyor when we remortgaged our property a couple of years ago. The cause is probably the tree in our neighbours garden, so we can't do much about it (at least I don't think we can).

We were still able to change our house insurance as no subsidence was discovered in the house, so hopefully, if you have no signs in your house you should be okay for insurance.

I don't think it has affected the value of our house though.

courtjester

sticher wrote: »

We have some subsidence to the garage attached to our house. This was discovered by the surveyor when we remortgaged our property a couple of years ago. The cause is probably the tree in our neighbours garden, so we can't do much about it (at least I don't think we can)

Oh yes you can. If there is evidence that a neighbours tree is affecting your property, you have a legal right to claim against them for the damage occuring and to require them to 'abate' (i.e stop) the nuisance (tree root encroachment is classed in law as an ongoing 'nuisance').

The practicality is that you inform your insurers who will deal with the matter of necessary repairs or rebuilding of the garage and contact with the neighbour and their insurers regarding any pursuit of legal recourse.

Initially, depending on investigations, if it is found that the tree is a prime contributory factor (it probably won't be the only cause), then the neighbour will be asked to reduce the size of the tree and thereafter control it - in extreme cases, there may be grounds to suggest the tree is removed completely, but this is a last resort.

You should not assume that the tree is responsible until investigations show this so there is no need to speak to your neighbour about this.

If the garage distortion is severe, it will need to be rebuilt (garages are not under-pinnned, it is more economic to simply knock them down and build again from the ground up on better foundations. However, if the cause of the movement is identified and controlled and distortion is only slight, it might be a simple repair process once the situation is stabilised.

You should contact your insurers rather than do nothing.

cupra20v

Thanks for all the replies

Gotta say it is playing heavy on our minds what this could all mean, im not doubting that the problems will be solved by the council, more how this will affect the value of our flat come resale time.

Are there any scales of effect on value, for example other than a sticking door, and assuming it goes no further than that due to the works about to be done, will that have a lesser effect on value, compared to a property that has had cracks, sagging, bowing whatever, or is it just a case of once the S word is mentioned it doesnt matter to what extent ?

TIA

lazygoose

cupra20v wrote: »

Thanks for all the replies

Gotta say it is playing heavy on our minds what this could all mean, im not doubting that the problems will be solved by the council, more how this will affect the value of our flat come resale time.

Are there any scales of effect on value, for example other than a sticking door, and assuming it goes no further than that due to the works about to be done, will that have a lesser effect on value, compared to a property that has had cracks, sagging, bowing whatever, or is it just a case of once the S word is mentioned it doesnt matter to what extent ?

TIA

There is no rule of thumb for value depreciation, counting cracks or other tell tale signs of subsidence.

If there has been subsidence recorded on the deeds via insurance claim, then it’s all about the
best price you can get from an interested buyer.

I’ve heard 15% below market value as a guide to a property that has had remedial work done to it.

And I’ve been told by my own insurers that they will cover a new owner, ONLY, if the property
sells at market value!

which is the whole point of going through with the insurance claim and repair in the first place,
to bring the property back up to a state it was before damage.

Now that’s just the insurance (sweet) talking... in reality if a property has had some
serious subsidence repairs, solicitors will do their utmost to put off their clients
purchasing the property, because they don’t want the hassle if things go wrong later,
and it’s no skin off their nose saying don’t buy it... here’s my bill anyway!

If you try to sell to a first time buyer that needs 100% mortgage or more, then it’s unlikely
the Bank will risk that amount of money. They tend to pull out after getting the survey.

If you sell to a cash buyer, they will honestly try to screw you out of a much money as possible.
20% below market value and more.

If you sell to National Home Buyers (I kind you not) 30% below market value is what they
will offer you.

If you sell through auction , (common for problem properties) it might not sell and you still
have to pay the auctioneer a fee.

You could sell it back to the council, and I don’t see why they would dispute the repair work
because it would be their work they would be criticising.
That is the best option as far as I can see, get some money by renting it out through the council
and then sell it back to them.
Of course they don’t have to buy it back, but many councils do.


If there is no evidence of subsidence a survey can only hint that houses in the area have had that problem.
My honest advice to anyone with this problem is not to make it worse by highlighting the issue in any way.