Buying an underpinned house, should I pay less?

twerpy1

Please help!!!!, I had an offer excepted on a house. With 3 weeks until completion I have just discovered it was underpinned 20 years ago. I have asked the vendors to carry out a full structural survey. I am aware that underpinning detracts from the value of a house. Assuming the structural survey says the property is sound, should I revise my original offer??

Running_Horse

If underpinning has solved the problem why would you offer less?

Be a bit like offering less because timber and damp treatment cured woodworm and damp.

bigadaj

They should have a certification report on the works, see if this is available and then employ your own professional to review it, you might have problems if the vendor has commissioned in terms of split liability and potential conflict of interest.

If the property has been properly underpinned then it's really a benefit as it has removed the problem.

However the impression is that the property is damaged goods, it's an excuse for a price reduction but this would be tied in with other factors such as how keen you are on this specific house, how long has it been on sale for, are there others interested etc

Also do some dummy insurance quotes and see if this would be a problem or additional cost.

[Deleted User]

Running_Horse wrote: »

If underpinning has solved the problem why would you offer less?

Be a bit like offering less because timber and damp treatment cured woodworm and damp.

We recently considered an underpinned house (30 years previously), and decided not to proceed in the end. We found insurance companies refused to insure or were considerably more expensive, and we thought that if we ever needed to re-sell it, it would narrow buyers down (a lot).

OP here's the link to the thread where I asked for opinions:

https://forums.moneysavingexpert.com/discussion/4901456

hcb42

why is the vendor arranging a structural survey?

twerpy1

Because we asked for it to be done.

tigsly

I'd have thougth you'd have wanted an independent surveyor - who was workign for you?

adamcollin

Ask for professional help. Make the agent review the documents and then decide the deal amount.

bigadaj

adamcollin wrote: »

Ask for professional help. Make the agent review the documents and then decide the deal amount.

Were also in the uk, and the estate agent won't know anything about foundations or structures, or the realtor in your case.

cattie

Normally properties that have had major structural work done such as underpinning will have had a certificate of adequacy issued, which is usually enough to prove property is now sound. This will have been carried out by a qualified building surveyor.

Underpinning 20yrs ago should really be of no concern as there has been enough time elapsed to show any issues with the previous problem that caused the property to need underpinning.

Once a house has had any remedial work carried out under an insurance claim, then the insurance company abide by a code of honour to continue to offer insurance on the property, even when property is sold on. If an owner decides later to switch to another insurance company, then they will find it quite difficult to find a company willing to offer insurance & if the original policy has been allowed to elapse, then it is quite likely that the original insurers will refuse to offer a new policy.

Once a house has a certificate of adequacy after structural work, there is no reason why the price should be any lower than any similar neighbouring problem free properties. However, such a house will not appeal to quite as many buyers as a house that has never had such a problem.

London & it's surrounding suburbs are full of properties that have suffered structural issues due to clay soil, so it's a fairly common problem & once remedial work has been carried out, there should be no further cause for concern.

bigadaj

cattie wrote: »

Normally properties that have had major structural work done such as underpinning will have had a certificate of adequacy issued, which is usually enough to prove property is now sound. This will have been carried out by a qualified building surveyor.

Underpinning 20yrs ago should really be of no concern as there has been enough time elapsed to show any issues with the previous problem that caused the property to need underpinning.

Once a house has had any remedial work carried out under an insurance claim, then the insurance company abide by a code of honour to continue to offer insurance on the property, even when property is sold on. If an owner decides later to switch to another insurance company, then they will find it quite difficult to find a company willing to offer insurance & if the original policy has been allowed to elapse, then it is quite likely that the original insurers will refuse to offer a new policy.

Once a house has a certificate of adequacy after structural work, there is no reason why the price should be any lower than any similar neighbouring problem free properties. However, such a house will not appeal to quite as many buyers as a house that has never had such a problem.

London & it's surrounding suburbs are full of properties that have suffered structural issues due to clay soil, so it's a fairly common problem & once remedial work has been carried out, there should be no further cause for concern.

All reasonable points but not really helpful to the OP.

Bottom line is that property should be fine, ask for as much evidence as you can, check insurance.

If you still want the house then use it as a bargaining point, as when you come to sell teh same issues will pop up and you could have problems selling Ora t least have to accept a hit on your asking price.