Mineshafts and mortgages

highguyuk

Currently still on the house hunt, but identified a strong contender.

House is located on what seems to be a potential mining hot spot. Another property on the road has a shaft underneath their property, and ours has a shaft identified at the end of the back garden. This is approx. 12m from the property.

I'm googling like mad to learn about the mines etc, but how would this effect the mortgage? It's not under the property, but would still be classed within the property boundary.

If it will affect a competitive mortgage, likely with Nationwide, I'll probably end up walking away.

Simon_gloster

Only the owner, surveyor and estate agents probably have any idea. Pay a val fee and speculate or as you say walk away. It's unlikely anyone could 100% answer your question apart from the owner.

Goldiegirl

It's been a few years since I worked at the Halifax, and we weren't in a mining area, but from time to time the valuers report would come back and a mining report would be suggested by the valuer.

I seem to remember that a report was commissioned ( at the buyers cost) and a lending decision would be made on receipt of the report.

So it would depend on the outcome of reports, I think.

Simon_gloster

It will be AIP subject to valuation report. End of. As no one from the mortgagee will see the property prior to full application it's a 100% risk for the buyer.

highguyuk

I wasn't clear in my original post, but the vendor has already had the mining search done which identified the mine. They are will share this report with us.

kloana

We had a mining search undertaken, on the recommendation of the valuer. This being a former coalmining area, the solicitor had already factored it into her conveyancing quote, and the EA had already pre-empted it.

Nothing found within the property or its boundary limits, but the report shown that several houses in the area (including in the same few tightly-packed streets) had suffered from subsidence a good few years ago, and had thus claimed from the coalmining board, or whatever they're called.

Our house was identified by both (basic) valuation and survey to have undertaken historical movement due to coalmining, but that it's unlikely to have moved since the late 1980s, and is unlikely to move again.

Mortgage was unaffected.

bigadaj

If its not within say 10m of the property then in theory there is no problem, apart from the risk to kids or others in the garden. The issue is that mining records are very incomplete, there could be a shaft beneath the house or the neighbours and there might be no records.

See youre in Stafford, and stoke is certainly a difficult area for mining, a lot of very old mining, records were only statutorily kept from 1870ish, though no guarantees, as I've experienced marked shafts not existing and unreported shafts being found by investigation or collapse. A key issue on the mining report is to check if it says that it might be within the area of influence of shallow seams, any coal seams may have been worked within an influencing depth of around 20m.

Will be interesting to see what the lender says, though ultimately it would be your house and you would carry the risk.

highguyuk

Some interesting points.

We are looking at properties to the north east of Wolverhampton, but understand the similarities.

kingstreet

Two issues.

Lending decision - future marketability?

The surveyor will be given a copy of the mining report by the lender and asked if the shaft, adit or entry in the vicinity will adversely affect the saleability of the property. If it will, the property may be downvalued, or deemed unsuitable security for the mortgage.

Part of the valuation concerns the marketability of the property if it has to be repossessed.

Insurance decision - will an insurer carry the risk?

If this was my case, I'd submit a copy of the valuation report and mining report to one or two of our tame insurers to get a view on the terms which would be offered. Standard terms probably means the lender/surveyor will see things the same way. Increased terms or inability to offer cover will not be a good sign as you'd then be looking at specialist insurers and higher premiums.

With a shaft adit or entry within 5m, I'd say difficult to insure, difficult to mortgage. Above 20m, not taken into account. Between the two, subject to individual investigation. Could cost a lot to find out no-one wants to lend on it, nor insure it.