First Direct mortgage and mine shafts

Martian2035

Good morning all,

I'm approaching the final stages of my house purchase, but my solicitor has informed me that there is a mine shaft within 50m of the house.

She has applied for a Mine Interpretive Report, which will advise about the structure of the mine and the surrounding area.

She will need to send this to the lender, and has advised that some will not give mortgages for houses near a mine shaft.

My mortgage application is through First Direct - has anybody had a similar experience with them? Should I be worried?

amnblog

You should if you were allowed to buy a property in a mining area without a mining report.

The report will help both you and the Lender to decide if you wish to progress.

Martian2035

amnblog wrote: »

You should if you were allowed to buy a property in a mining area without a mining report.

The report will help both you and the Lender to decide if you wish to progress.

Thanks anmblog - oh I completely understand that. I certainly wouldn't progress myself without the report - I don't want to spend £90k on a house that is in any kind of danger.

The issue is that my solicitor has suggested some lenders will pull out because there is a nearby mine shaft, even if the report comes back glowing.

amnblog

That is a matter for them and out of your control in a mining area.

If Lenders are hesitant to lend to you, they will be hesitant to lend to your buyer when you want to move on and that is how people get 'stuck'.

Martian2035

amnblog wrote: »

That is a matter for them and out of your control in a mining area.

If Lenders are hesitant to lend to you, they will be hesitant to lend to your buyer when you want to move on and that is how people get 'stuck'.

Absolutely, I fully understand how it works - and why. I appreciate the risks of buying in a former mining area, and what the immediate and future consequences are.

I was just wondering if anybody had experience with First Direct specifically on this matter, and what their stance is.

kingstreet

Lenders have an issue with mineshafts more than 20m away?

Really?

In my experience in Stoke On Trent, they aren't noted until they are wthin 20m and not considered to affect the value unless they are within 5m.

Either way, it's not a lender call. They will refer it to the surveyor who did the valuation and toss it in their lap...

hawkebaby

I have purchased a house which the mining report came back as showing a shaft within 20 mtrs of property. I paid to obtain an interpretive report which did not really give any extra info other to say there where about 10 entries/adits nearby from about 1803 and that any issues resulting from it are covered by the coal board anyway.

My mortgage was arranged through First Direct and they had done survey and offered mortgage before this came to light, I sent them the report and they came back saying it was not a problem because coal board are liable and their offer and valuation stood as was without any adjustment whatsoever.

This was on an 8yr old, 5bed, detached house in Staffordshire and I had offered 1K above asking before this came known to me, I did not go for a discount due to the valuation not changing.

Several houses have sold within days of marketing since (including my neighbour who is closer), without problems or falling through due to these issues, all circa £300K, so mortgage lenders seem at ease with these issues in my area.

As a footnote I did also contact my buildings insurer prior to exchange to make sure that they would cover it at standard terms and had no problems at all, infact I have just renewed my cover with them for £73yr unlimited rebuild cost with standard £1000 subsidence excess.

Mimip

Hi, I'm just wondering if this mortgage was approved? We are in the process of selling our house that has a mine shaft behind next door but one.