selling an underpinned house

realbean

Hi. Thanks for taking time to view this.
I bought a 1930s semi in 2008 and only found out it was partially underpinned when the solicitor did a local search and it came up on the local council records who regulated the work. Our home buyers survey failed to pick this up. I must admit our solicitor mentioned it briefly at this point and just said not a problem all the certification is present so we went ahead with the purchase stupidly not
realising fully what underpinning was. The house insurance was transferred to us from the previous owner.

The problem now is we have realised our mortgage company wasn't aware the house was unppinned for subsidence when we bought it as survey didn't pick it up. Our neighbours has informed us he couldn't sell his underpinned house as the banks wouldn't lend on it. My question is if the house is insured will banks provide a mortgage on a partiality underpinned house? I do also have a recent structural report to say there has been no further movement. Please help any advice welcome. Will we ever be able to sell this house?

Thanks

justjohn

needing underpinned or HAS BEEN UNDERPINNED?

realbean

The house was underpinned in 2005 and has had no problems since

Thanks

maninthestreet

This is the second thread you have opened for the same isssue.

justjohn

OK the insurance that was transfered i assume is a seperate insurance policy for susidance?

Most building insurance does not cover subsidance when there is a previous history.

Mortgage companies will not like that, however if you have a second policy in place for just subsidance then there should not be a problem as long as cover is ample.(hopefully)

realbean

Sorry I didn't know where was best to post this.

Thanks justjohn I have combined building and contents cover which has a 5, 000 excess for subsidence.

justjohn

delete one of you threads.

So you have insurance. How do you know the mortgage company does not know about previous subsidance issue(or even that they need to know)?

If you are that worried see a broker. However it insured and there has not been a further history of it. As long as the asset is protected the bank dont give a jot.

Some mortgage companies will not bat an eyelid some will.

However it WILL put alot of people of purchasing.

dacouch

justjohn wrote: »

OK the insurance that was transfered i assume is a seperate insurance policy for susidance?

Most building insurance does not cover subsidance when there is a previous history.

Mortgage companies will not like that, however if you have a second policy in place for just subsidance then there should not be a problem as long as cover is ample.(hopefully)

The insurance that was transferred was the previous owners Building Insurance who paid out on the Subsidence claim. This is common practice within the industry.

You do not need a second policy in place, they just transfer their building policy to the purchased as the previous owners did.

cycloneuk

Did you lower your offer once you found out it had been underpinned? i also purchased a underpinned house last December, mine was underpinned in 1998 due to historic settlement.

I was a cash buyer but had problems getting insurance, previous insurance company would not transfer existing policy, now pay £49 a month for buildings and contents with TrYoungs brokers. I think my excess for subcidence is £1000 or £2500.

To be honest many people will be put off, you will need a recent structoral engineers report and it will need to be priced lower than other similar properties. I didn't find out here had been underpinned until the searches came back, i did drop my offer by 4k but should of pushed for a much bigger reduction.

propertyman

realbean wrote: »

The problem now is we have realised our mortgage company wasn't aware the house was unppinned for subsidence when we bought it as survey didn't pick it up.

Unless there are signs or there is a risk in the area there may be no signs eg a re-rendered outside. I saw one house for a mortgage valuation and arrived to find a big hole in the garden, the owner was showing me the underpinning from years before :eek:

Well hang on a minute, your solicitor was aware of it through local searches and therefore if they acted for the lender, or it was their own legal department/panel firm, who would be aware of the local searches and the underpinning, they did know.

What is not clear is why you are now asking the questions, it it just that next door cannot sell? If you are worried about your mortgage then see above, they did know.

The insurance policy you have, was this the insurance policy for the house that was assigned to you, or is it a separate insurance policy for the underpinning work? If the former did the underpinning company make available a warranty or insurance policy- your local search or penguin at building control will give you the firms name.

If you can obtain that then lenders and buyers are much happier.

Though " underpinning" is a scary term, objectively a 1930's house was commonly built on some hardcore and 12 inches of brick into the ground.

I'd rather have a 5 feet of poured concrete underpinning under me any day :rotfl:

realbean

I didn't go for a reduced offer but should of! Out of interest cycloneUK does it worry u that u may have problems trying to sell in the future?