Buying House with Subsidence

j_0732

Hi, I'm looking for some advice on buying a house that is currently suffering from subsidence. I've accepted an offer on my current property and my offer on the subsided has also been accepted. I'm currently applying for a mortgage with HSBC but am concerned they won't give me a mortgage until the problems with the property have been sorted and I can get full insurance (including subsidence).

A structural survey has been done and identified the issues, a garage extension needs a short portion of wall rebuilt with better foundations and basically all the drainage pipes replaced (root infiltration).

If HSBC were to say no to giving me a mortgage until the property is sorted is there any way for me to get a loan for the property? Are some mortgage providers more receptive to subsided properties? I'm aware of bridging loans however due to the cost it may make the project infeasible, I would also feel very at risk in case the structural engineer wasn't willing to sign the property off to allow transfer to a standard mortgage.

My HSBC mortgage is 90% LTV but I could up this to 80% or possibly 75% at a push. Have kept it high to leave me money for further cosmetic works but they can wait if necessary. There is also the possibility of borrowing further money from my family for a short period of time, say 3 months max.

Any advice is appreciated, if you need more information let me know!

patman99

Does the subsidence only affect the garage?, or does it also affect the main house as well?.

maninthestreet

What is so special about this property that you still want to buy it even though it appears to have on-going subsdence?

j_0732

patman99 wrote: »

Does the subsidence only affect the garage?, or does it also affect the main house as well?.

The subsidence only affects the garage however as the two are attached it has caused a crack to the main house. The problem really seems to be due to the two being attached but on different foundations. The work to the garage looks like a bit of a cowboy job, poor foundations and drainage being redirected to nowhere. I've budgeted for all the necessary repairs outlined in the structural report as well as a contingency.

maninthestreet wrote:

What is so special about this property that you still want to buy it even though it appears to have on-going subsdence?

The property is a bit of a one off in the area and the purchase price reflects that it is a "problem" property. As mentioned a structural survey has been done and the issue identified, along with a remediation strategy. At the moment I'm just trying to see if there is a way forward which will allow me to purchase the property but isn't prohibitively expensive.

Thank you both for your replies.

malglynn11

Somebody must have some advise. let's get some replies people!!!

bigadaj

People are very nervous if any indications of ground movement are evident.

All you can do is see if teh bank will lend, it might be worth speaking to a mortgage broker who may be able to place this more easily, hsbc have a reputation fro being picky on mortgages so there could be better lenders for your purposes.

It's possible you may get the mortgage, though I might well expect a higher depsoit could be a requirement possibly with a retention.

The works sound fairly straightforward, the problem is they may resolve the problems getting any worse but you'll still have cracking on the house because they are tied in.

It sounds to ema s though it's a. Job for someone with a larger depsoit, so deflecting the risk from teh bank, but it's worth trying.