PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.

Experience of selling underpinned house?

Hi,

I posted recently about a house we are trying to buy, which searches brought up had been underpinned in 1985. Vendors, who bought in 2006, apparently had no clue. I was signed off by the council and we are awaiting certificate of competency. I have found an insurer who is willing to insure for £452 for the year, buildings and contents. No idea yet if lender will still lend (natwest) but I'm wondering if we should go for it at all as every forum thread I've ever seen about underpinned houses the general advice is: don't walk away, RUN. Because the very word "underpinned" puts off buyers.

However a lot of people also say "well if it's been underpinned then the job is done and it's no problem" and that hundreds, if not thousands of properties in greater London were underpinned at that time. Theoretically any future buyer could just take over our insurance, I spent about twenty mins on the phone and they weren't concerned about it as it is over 30 years ago and as far as I know shows no sign of movement. They dudnt seem to think we needed a structural engineers report etc.

It's a two bed semi detached bungalow, the one it's attached to has been extended both upwards and out wards, so presume it's fairly sturdy. This would also be our plan in the future as we have three kids. I just can't help but think that it's a big risk, mainly because future buyers will be put off.

However, it's the only property that's remotely appropriate in our price range (220 - so cross we weren't in this position a few years ago, could have got a 3 bed house for that) everything else is a house in an area I know is bad (like the one we moved out of a year ago, gave up our house and went into renting because we couldn't bear it) or a 2 bed maisonette.

Part of me thinks we should keep renting (although being evicted next month :eek: as LL selling - the private rental system in the UK sucks for tenants) and maybe try saving a little longer. If our incomes and rental payments stayed the same, AND property prices didn't keep going up :mad: we would have to save another 30k which would take at least 5 years. By which time hubby, the main earner, will be 45, I'll be 37. We are already looking at a 30 year mortgage term to afford this place on a 5% deposit.

On the other hand, if we can buy this bungalow and extend it to suit our family and stay there at least we, my kids included (2 of whom have ASD and are very unsettled by change and uncertainty) wouldn't be living under the constant shadow of a potential yearly move. Tbh it's really affected my mental health, the uncertainty of living to a landlords whims.

So, has anyone had experience of selling an underpinned house?

thanks

Shorty

P.s I am thinking of knocking on the adjoining bungalow this evening and asking if theirs is underpinned etc
Mummy to 3

March Grocery Challenge: 152.06/£300
Decluttered 59/2016 since Feb
March NSDs 1/13
«1

Comments

  • Legal and general do not consider subsidence and underpinning after 15 years. Check out their criteria and see if it matches your circumstances. I just got buidling and contents on a 4 bed semi for about 200 quid.
  • Did you do that online, or phone? Did they need to see certificates etc.

    And may I ask, did you recently buy this house and did the word "underpinned" not put you off at all?
    Mummy to 3

    March Grocery Challenge: 152.06/£300
    Decluttered 59/2016 since Feb
    March NSDs 1/13
  • There is no way anyone's experiences of their own houses in the past will be of any help to you hypothetically selling your own house in the future.

    If you are buying an underpinned house you would be a bit lax to say the least not to have an engineers report, but considering the length of time since it happened you would imagine it would be fine.

    The bottom line is that an underpinned property is never going to be as desirable as an identical one in the same road that isn't. As long as the price is right and you don't mind the song and dance with insurers (as you have found some are fine, some are fine with a time lag, and some just put the phone down as soon as you mention subsidence).

    Only you can make the decision as to whether it is worth it to you or not.

    We pulled out of a purchase that was almost at exchange once on an underpinned property for the following reasons:

    1) The vendors tried to conceal it from us for as long as possible
    2) When we did find out neither they nor the agent would provide any reliable information about what was wrong
    3) The insurers I phoned didnt like it
    4) I just didnt think it was worth what they wanted (already priced as much as anything had ever sold for in the street) once its history came to light

    Number 4 is ultimately what made the decision. Buying a property is a financial 'head' decision, not a heart decision, and ultimately then only head that can make that decision is the one signing on the dotted line.

    With 'our' property they subsequently tried every year or so to sell it, eventually dropping the price by 10% and it still didn't sell. This was in a sought after area of a posh cathedral city in the south east of England, commutable to London. I was actually surprised it didn't sell as I assumed someone would come along who didn't care, but it seems they didnt.
  • Re number 4 it's difficult to say with the way prices have jumped up! It's certainly, going by Zoopla, the most that has been asked for a property (only 7 in the close) by about 60k however, that's reflective of price rises in this borough anyway.

    The estate agent didn't seem to think the underpinning was a problem, just needed the right insurance. But obviously she wants to sell the house!

    However an agent tfl a completely different company, who was doing a viewing on our rental, also seemed to think it was not a problem (he lives nearby to the bungalow himself actually). :/

    If there I thought there was a gance of something else coming up in the next year or two I'd walk for sure, but it's so tough at the moment. :(
    Mummy to 3

    March Grocery Challenge: 152.06/£300
    Decluttered 59/2016 since Feb
    March NSDs 1/13
  • Shortypie wrote: »
    Re number 4 it's difficult to say with the way prices have jumped up! It's certainly, going by Zoopla, the most that has been asked for a property (only 7 in the close) by about 60k however, that's reflective of price rises in this borough anyway.

    The estate agent didn't seem to think the underpinning was a problem, just needed the right insurance. But obviously she wants to sell the house!

    However an agent tfl a completely different company, who was doing a viewing on our rental, also seemed to think it was not a problem (he lives nearby to the bungalow himself actually). :/

    If there I thought there was a gance of something else coming up in the next year or two I'd walk for sure, but it's so tough at the moment. :(

    Yeah everyone told us to carry on regardless, including family. I got the impression that most people thought it was a privilege for the likes of us to even get the opportunity to live in such a street so we should pay up.

    The market was rising strongly there too, but against everyone else's predictions the underpinning actually had reduced its value and if we'd needed to sell in a hurry for what we paid, we would have been stuffed.

    None of which is of any use to you in your situation, unfortunately.
  • Shortypie wrote: »
    Did you do that online, or phone? Did they need to see certificates etc.

    And may I ask, did you recently buy this house and did the word "underpinned" not put you off at all?



    Our vendors were honest and open from the time of offer which was appreciated. All supporting paperwork and completion certificates were supplied. All notified correctly to our lender, insurer etc and due to the historical nature and no further occurrence there were no issues.

    People scaremonger about underpinning like it's some kind of house cancer. Make your own informed choice by the length of time between the underpinning and carry out additional surveys if required.

    Legal and generals criteria is quite specific in relation to subsidence / underpinning and I have checked that it is correct by phoning and speaking with the direct.

    Make your own choice and don't be put off.
  • Sorry but I would be put off and I would describe it as having a CAT C car, you might get many happy years of trouble free use out of it but when it comes to selling it you probably going to get issues. I nearly bought a house that had been fixed that I loved and could see myself there for 10 years plus but the owner would not move enough on the price. I phoned the insurance and it would have been £100 a month, so together with the hassle of resale I walked away. I agree with Ruggedtoast in that if you can see yourself there for a good number of years and you are getting at a price that takes into account the things above then it could be the one for you. With regards to underpinned London properties you cant really compare that market with anything outside, people will buy a garage and try and turn it into a 4 bed.
  • It seems to me that the structural integrity of an underpinned house is not necessarily called into question, it's just a self-perpetuating circle of "I can't buy in case I can't sell in case buyers are put off in case THEY can't sell" ad infinitum. Is it just me that finds that insane?

    I spoke to the lady next door but not much help: she bought in 1998, no mention of underpinning, all extensions were already done.

    I feel that if we could decide it's our forever house, once it's extended, it could be worth it. I wonder if a structural survey could tell whether it would be suitable to extend in the future, as whether it could be our family home really depends on this. In which case it's not too cheeky to ask vendors to arrange one, in the circumstances, is it?
    Mummy to 3

    March Grocery Challenge: 152.06/£300
    Decluttered 59/2016 since Feb
    March NSDs 1/13
  • nubbins wrote: »
    Sorry but I would be put off and I would describe it as having a CAT C car, you might get many happy years of trouble free use out of it but when it comes to selling it you probably going to get issues. I nearly bought a house that had been fixed that I loved and could see myself there for 10 years plus but the owner would not move enough on the price. I phoned the insurance and it would have been £100 a month, so together with the hassle of resale I walked away. I agree with Ruggedtoast in that if you can see yourself there for a good number of years and you are getting at a price that takes into account the things above then it could be the one for you. With regards to underpinned London properties you cant really compare that market with anything outside, people will buy a garage and try and turn it into a 4 bed.

    You don't need to apologise, Your vendor felt strongly about his properties value and you walked away as it wasn't right for you. I'm sure someone else came along and bought it. Did you check the land registry to see what he/she got for it in the end?

    What we are trying give the Op is a balanced view.

    It not all doom and gloom when It comes to subsidence and or underpinning. And it's not all £100 per month policies as the Op has already found out. My Policy is approx £22 per month and the ops would be about £40.

    And using the car analogy doesn't really work. Houses don't get written off so that they cannot be used. Underpinning often strengthens the area more than what it would have been when first built.

    And above all it been 30 years. :)

    From what I understand there is around 500,000 houses in the UK that have been treated for subsidence and it will continue to grow, especially if we have long dry summers

    When it comes to sell the property, be honest and open and the right buyer will come along.

    But I agree, you may not be able to market your property at the higher valuations when it comes to sell.

    Either way Shortypie, good luck with it
  • My analogy is more to do with the fact that the subsidence history always sticks with the house, I was a bit suprised because I thought after say 20 years being trouble free it would not be an issue. I did a few insurance comparisons on various websites and as far as I can remember it was a straight has there been any history of subsidence, yes or no, maybe I did not scan enough websites.
    The house I went for was on the market for 8 months after my offer but it has sold and I am waiting for it to appear on the sold price listings. I offered 10% less so I will be interested if he eventually came down to that or if he did get near the ask in the end.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.4K Banking & Borrowing
  • 252.2K Reduce Debt & Boost Income
  • 452.5K Spending & Discounts
  • 241K Work, Benefits & Business
  • 617.4K Mortgages, Homes & Bills
  • 175.7K Life & Family
  • 254.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.