Garage extension, subsidence & insurance

seafarer82

I am, possibly stupidly, thinking of buying a house with current subsidence issues. However, the cause of the subsidence is fairly obvious (drainage issue) and once fixed it's unlikely that there'd be any further movement, according to my surveyor.

The area where the soil has probably been washed away from is at the back of the garage. I'd be aiming at converting the garage anyway into a living room and extending it to make a larger living area in line with the main front of the house. Obviously that would need footings digging at the front of the garage but if I also did work at the back to strengthen the foundations (which may need doing anyway) what are the implications in the event of a future house sale? Would I need to declare that the house has had a subsidence issue if the cause had been fixed, remedial work carried out during the garage conversion and there had never been repairs carried out under the insurance?

Also, I've just been informed by the estate agent that the previous owner had contacted the insurance about the issue but that any claim had not gone forward for an as yet unknown reason (it's a probate sale and likely that the insurance wouldn't cover repairs as the property had been vacant/not maintained).

If he has just made enquiries about whether he can claim, would this show up on any searches? Would it show up if he had made a claim which had been officially rejected?

I'm well aware that at this point most people would be backing out of a sale, but since the cause of the issue is known and might be fairly easily fixed during remedial work, if I can sort it out without any problems down the line when it comes to selling the place then it still may well be worth it.

Buzby

'might' is a two-way street. You are also assuming that the Council would rubber stamp a conversion to living quarters - this may not be agreed and foil your plans. Look at the Council's planning website and see what has happened to others that have asked.

Lastly, the remedial work may be masking a major issue that remains unknown - the time to investigate this is now if it forms a major part of your plans. A surveyors report will not be anything other than advisory - what he can actually see without fully investigating. It could lead to major disappointments later on. Far better to find out before you agree and commit your finances.

seafarer82

Thanks for the reply. Three other houses on the road have done similar garage conversions and I've phoned the council for pre-application advice, who said they couldn't see a problem with it being passed.

I wish I had time to get a structural surveyor in but it's an auction property so time is limited. The cracked drain is almost certainly the cause of the problem and I'm willing to take a chance on the place, but trying to find out if/how the existing issues might affect me further down the line when it comes to sell, even if they're permanently fixed.

cattie

Any enquiry regarding an insurance issue is generally noted down as a claim, so be warned. I've heard & read plenty of posts on mse about people who have suffered accidental damage or things going wrong in the home & phoned the insurance co for advice, then decide not to take the matter any further.

However, when they come to renew insurers or to change insurers, they find they either have a good price hike or are refused insurance completely because of their recent 'claim', which they haven't owned up to.

You will need to stick with the current insurer as you actually know about the subsidence issue & so do the current insurance company & the chances are any other company will either turn you down or cancel your policy completely should the subsidence issue come to light.

Subsidence in a garage is treated exactly the same in an insurer's eyes as it will do a house. The S word strikes terror in all!

dominoman

Don't let subsidence put you off entirely. As long as you deal with the cause properly it should cause you no further problems.

In London subsidence is so common that it really doesn't affect the value of a house at all - though in a falling market it would be a factor that could make it harder to sell than an identical house without the problem.

Subsidence is usually not as bad as most people make out.