getting a mortgage on a property that needs underpinning

sk4588

me and my husband have really decided to go for this house but the estate agent has told us we wont be able to get a mortgage because it needs underpinning. we really dont care as it is a 5 bedroom and we wont be looking to sell it in the near future or at all. we are prepared to put up 50% deposit and save up for the repairs as well. is it that impossible to get a mortgage on such a property or these estate agents want to just put us off. where can we go for such mortgages if they exist.

jc808

speak to a surveyor and/ or independent mortgage adviser

HappyMJ

sk4588 wrote: »

me and my husband have really decided to go for this house but the estate agent has told us we wont be able to get a mortgage because it needs underpinning. we really dont care as it is a 5 bedroom and we wont be looking to sell it in the near future or at all. we are prepared to put up 50% deposit and save up for the repairs as well. is it that impossible to get a mortgage on such a property or these estate agents want to just put us off. where can we go for such mortgages if they exist.

You need to repair it before the bank will release the mortgage funds. Once underpinned could you get buildings insurance on the property which is a requirement for the mortgage.

eddddy

As others have suggested, you should speak to a mortgage adviser and to an insurance broker.

You may end up with a specialist (expensive) lender, and you will definitely have 'non-standard' (expensive) buildings insurance. Do your sums, as you may end up spending thousands a year extra, because of the underpinning. (Forget about getting all the good deals you see on comparison sites!)

You need to be very clear about what the lender/insurers need. For example, they may need a 25 year guarantee on the underpinning. A firm that gives 25 year guarantees will be much more expensive than a firm that doesn't - so you need to do your budgeting carefully. Also make sure that your planned insurance policy only charges a £1000 subsidence excess, otherwise it may not be acceptable to your lender.

Debt_Free_Chick

Just wonder why the vendor isn't getting in done, perhaps as an insurance claim ...?

DELLBOY_2

Cant see a mortgage company touching it ,can you buy it without a mortgage (suppose not )
i would walk (no run ) away just too risky

ruggedtoast

You will need buildings insurance to get a mortgage and I fear you will have very little luck in doing this on a house that is sinking into the ground.

DVardysShadow

Take advice from a Surveyor first. Never mind Mortgage Advisors or Insurance Brokers. They will be able to tell you what the rules are, but they will not be able to give any meaningful opinion on the house you are looking at. A Surveyor will be best placed to cover all angles.

jc808

As above, it may not need underpinning or just partial underpinning - speak to a surveyor

cattie

Debt_Free_Chick wrote: »

Just wonder why the vendor isn't getting in done, perhaps as an insurance claim ...?

Have to agree with DFC, this would have been the simplest and most cheapest course of action. Vendor would probably have been liable for the first 1k under terms of buildings insurance and the policy providers to have met the rest of the cost.

Also, once remedial work is carried out on a property under the terms of it's buildings insurance, that company will usually agree to continue to insure the building should the property be sold in the future. There is a kind of honour code regarding this with insurance companies. Once this buildings insurance policy be allowed to lapse, it can be very difficult and very expensive to find another insurer willing to take the property on.