Help - problems selling house, what to do? Long post sorry

Mrs_Metalhead

We currently own a 2 bed terrace, built approx 1890's, has been on the market since the end of November. Before selling we redecorated the whole house, re did the garden (laid a lawn, new patio & fencing etc) and kitchen is only 2 years old. We are not having any problems getting people in, have sold the house 3 times, however, all 3 have fallen through on the survey. The potential buyers have not told us in detail why they have pulled out but they have all basically said the house is according to the surveyors "structurally unsound." One thing mentioned all 3 times is the fact that there is a tie bar through the middle terrace (ours is end terrace of a row of 5), the tie bar was put in to stop subsidence, as originally there were 8 properties but many years ago the end 3 were demolished. This was due to subsidence in these 3 houses thus the tie bar was put in to stop the same happening to the remaining 5. Previous owners had a structural engineers report done in 1984 that stated the house was structurally sound, there had been no movement in the property and expected there to be none in the future due to there being no future mining in the area.

Back to today, getting really downhearted about it all as it now seems no-one will touch our house due to the tie bar, we have told the estate agent about the previous surveyor report but have been told it is irrelevant due to it's age. We bought the house in 2003 and got a normal mortgage no problem, then again in 2006 we swapped lenders, thus had another survey etc and again got the mortgage no problem. Why now are we getting all these knock backs and how are we supposed to sort this out?!

I am basically looking for advice on where to go from here, we have thought of a number of options that may be viable;

1. Get another structural engineers report done which will hopefully state that the house is structurally sound - is it worth doing, would potential buyers/mortgage companies take any notice?

2. Take it off the market and look at renting it out for 18 months and trying again/keeping it as a rental property if it does cover the mortgage payments.

3. In 18 months time if we still have it, sell it at auction either as it is or with a sitting tenant if we are renting it out - however are worried about not getting enough to cover mortgage even though based upon estate agents valuation and our current mortgage our LTV is 74% - will obviously be less in 18 months.

Sorry for the long post but really at a loss of what to do for the best feels like we are at a dead end and really want to sell as we have reserved a plot on a new estate which will be built mid/end 2015. We don't need to worry about where to live if our current house sells as we have an offer already to stay with family to save up for the new house. We have spoken to the builders of the new property regarding a part ex, but when we told the part ex manager that there is a tie bar through the center of the row of terraces he said they wouldn't touch it so that is another dead end. We don't have the option of staying at the house long term as we have 2 children so space is very very tight so we do need to move.

Thank you for taking the time to read my post.

Excited13

I'm sorry I have no advice but all I can say is good luck. All I would say is even if you got a survey the buyers lenders wouldn't accept it as they will do their own surveys.

Mrs_Metalhead

That's one thing I wanted to check Excited13 - no point us paying £300 for a survey if it is worth nothing to the buyers/their mortgage company. Just thought they may look at it as from what I hear normal surveys can be quite vague sometimes with lots of it "might" have this wrong with it, and this "may" need to be looked into etc.

R_P_W

What did your survey say when you bought it?

Mrs_Metalhead

It said that there was evidence of subsidence in the area but was not evident in the property. Other than that was just that a new damp proof course was needed, the doors and windows needed replacing, new guttering was required and the roof may need to be replaced in the short term. All of which we have done.

scottishblondie

TBH, if your 3 buyer's surveys all said that your property was structurally unsound I'd be getting the house checked out for my own peace of mind! Their surveys may be wrong, but then again there may be a serious issue that you need to fix.

The survey from 1984 is so out of date that it is useless. Were either of the surveys done for you structural?

RJS86

The lender may question the impartiality of any report paid for by you and produced prior to the sale of the house.

I'm surprised the surveyor hasn't advised that an engineer needs to look at the property and provide a structural report. I've done structural reports before for buyers, whose surveys have stated as much, in order for them to get their mortgage.

Cazza

Have you seen any of the survey reports the buyers have received? If not, it might be worth asking, via the EA, if one or all or the buyers is prepared to let you see. Clearly they don't have to show you but when I was a Mortgage Adviser I did have this happen to clients (on both sides of the coin), some said yes, some no. Worth a try surely?

Otherwise, it might be worth getting your own reports done. Yes, a buyer / their mortgage company might insist on having their own reports done but at least the EA could then be proactive with future buyers, explain it has previously fallen through due to survey but you've had it checked out and everything is fine. You could even give the EA a copy of any reports / investigations you have done for them to show buyers. It will cost you but if it stops the next sale falling through then it's money well spent.

Alternatively, ask your Buildings Insurer to look into things?

To me, one sale falling through could be down to a particular surveyor not liking something about the house, or an overly cautious buyer being freaked out by a "standard" statement about the movement you already know of. Three sales all going wrong though, you need to do something! Good luck!

I_have_spoken

Surveyors are now more concerned about litigation, so will paint a 'worst case' picture in their report rather than state there are no problems and risk being sued.

TBH I think you'd be best getting your own structural survey done so you know what's what. Buyer's lenders will still do their own, but you can be proactive when viewers come round.

mrsmchapman

I completely understand where your at. I sold a house two years ago, I'd brought it from my nan and it had 3 tie bars. It was detached house but the look of a traditional terraced house. Anyway by my own mistake I moved out then put the house up for sale, the house needed work and I was quite open to offers knowing this, but there was a fair bit of land so had some major extension potential. I got 1-2 viewings according to the EA but no further interest, the tie bars were visible from outside but I always assume anything quite old it's not unusual to see. Sadly after a year I was becoming desperate looking at auctions, these dodgy buy your home quick companies etc, when very luckily my brothers friend came along and asked how much I wanted as he wanted a property to do up. We came to an agreement and sold privately between ourselves. When I purchased the house and again when I sold the survey clearly stated about the tie bars but no movement in last 10 years and unlikely to be any movement in the future. I feel people get very worried when a survey even mentions the word movement, but people have to remember this isn't a new build with nice straight walls it's a classic old house!

I would consider getting a structural survey done, you could always issue this to potential buyers once they have made an offer or prior whichever you feel best.

I would then continue to market and maybe even consider multiple agencies so that they feel like they are having to battle for the sale.

Have you thought about an open house?

hazyjo

You might be able to buy a survey at a discount that one of them had done. Not sure if it officially still 'belongs' to the surveyor though - you might find you have to buy through them. If the buyer can sell theirs on, I'm sure any would be grateful even for say £100 to recoup some of the money they've lost.

Do you know if it's been surveyed (not just valued!) through different companies, or the same one (eg Countrywide - a common one for lenders to use)? It might be that they're re-using the same report for all three potential buyers.

It's a horrible situation to be in. I would definitely be trying to get hold of a survey or getting my own report done, probably by a structural engineer.

Jx