Area of Natural Subsidence

shellstar

Hello,

I'm currently in the process of buying a 2 bedroom house which was built in 1998. The environment report has come back and there were a couple of red flags. One of them is that the house is apparently in an area of natural subsidence (there is a river near by).

The solicitor has gone to the seller's solicitor to ask if they are aware of any subsidence to the house or any nearby and of course the survey will pick up on if there is any subsidence to the house. However, I'm unclear about how much I should worry about possible subsidence in the future. It says there is moderate potential for natural ground instability in the area within 50m of the property and recommends that a RICS qualified member investigate. Can I ask my surveyor to investigate this (I was going to ask for a homebuyers report, not just the valuation), or will I need to commision a seperate report? Should this be a deal breaker, or is it just something to be aware of?

Thanks in advance for any helpful guidance and advice.

Thanks
Shellstar.

cattie

I'm not sure where the property you are thinking of buying is, but most of London & it's suburbs is built on clay soil, so is quite prone to shrinkage & subsidence. But of course, very few properties actually suffer from it in the grand scheme of things.

A homebuyer's report will tell you nothing about any such risks, it's rather a bland & pointless report for most part that more often than not suggests getting in specialists such as electricians, roofers, damp proof experts etc. etc. in to check that the various bits of the property are ok.

I think what you need to put your mind at rest is a structural survey & ask the surveyor to pay particular attention to areas that concern you most & then be guided by his report

The most important thing to worry about concerning any property that has suffered from subsidence or other necessary structural remedial work & had work done under an insurance claim, is that the property continues to be insured with the original insurance company who paid for the claim.

Only you can decide if it will be a deal breaker. What you have to consider is if you come to sell, will any other buyer have the same concerns as you? It might make some buyers think again, but then a good house will always sell at the right price however.

dominoman

On a house built in 1998 the foundations will be deep and strong.

Unlikely to have any subsidence, but it is a factor that could potentially put off future buyers.

Subsidence is much more likely to be a problem for the Victorian houses than your sparkling new one.

shellstar

Thank you, both of these replies are very helpful. I've spoken to a few colleagues who already live in the area and this seems to be a very common finding of the environment report. What they have done is check that there has been no subsidence in the past and that there are no signs of it now so I will do the same. I'm also going to check with my insurer that they are happy to insure the property. I'm told that they will likely already have quoted to me on the basis of the moderate risk, as they have access to the same environment reports, but I'll double check this is the case and make sure I can get adequate insurance before I progress things further.

cattie

When you speak to the insurer, whatever you do don't mention subsidence at all. It's a word that many insurers loathe & even though the risk to this house is only moderate, there is no need to give the insurance company a chance to load your premium.

Just ask them for a price for insuring the house. As long as you answer any questions honestly, it's down to them to do their own homework on any possible risks for the area.