Underpinning - to buy or not to buy

Brown_Eyed_Girl

Hi all

First time poster and first time buyer in London. I'm currently going through the process of getting a mortgage on a property and all was going swimmingly (far too swimmingly) when we found out via the mortgage company that the surveyor had paused the process. It wasn't clear why until speaking to the estate agent he mentioned they might be funny about the underpinning.

From what I've read briefly via google people have advised others that not to go for a place that's had underpinning. Or to knock some money off the price as it'll effect the insurance. But these seem to be for freehold, this is a large block of flats so it's leasehold and the buildings insurance is done by the maintenance company. The reason for it is because it is on the side of a hill in what was some woodland. It also turns out the Mortgage company ok'd someone else's mortgage in the same block (according to the estate agent......).

If anyone can point to some advice from decent sources that it would be worth me reading before I make the decision that would be brilliant.

We've not spent the money on the survey yet (home buyers not basic) so it's whether i spend even more money on a more expensive one - which you don't tend to do on a block of flats, whether i go for the one I have which should show up the work that has been done, or whether i walk away and cry at having to start from scratch - £300+

Thanks

camptownraces

The building insurance and maintenance will be funded by the leaseholders.

Would you think it better to have a leasehold flat in a block that needs underpinning (which might be funded by insurers) or a flat in a block which has already been underpinned properly, with a somewhat higher insurance premium?

(Being on the side of a hill which was previously woodland, doesn't immediately suggest underpinning would be needed - estate agent's codswallop as usual.)

Lots of London is built on clay, which is why lots of London needs, or has already had, underpinning. Clay plus a series of dry seasons can make the need obvious - equally, clay plus a series of wet seasons can cause heave, which may give rise to similar issues.

If you want a place in London and are very bothered about this, have a careful look at the geological map. Some places are built on greensand, or chalk. They're a lot further from the river generally.

Best really to place your faith in full survey - though whether mortgage lenders would be in agreement I don't know, as they don't always act rationally.

Brown_Eyed_Girl

Thank you, the side of the hill/woodland thing was my best guess at why it was needed. It's a 1930s block so seemed rational that could be the issue - the Envirosearch notes that there are no known coalmines or excavations on the site and that the BGS have said 'the area has moderate potential for natural ground instability'. The solicitors have requested the pack from the maintenance company and I've flagged to them to check that this issue has been covered in it.

I agree with the point about one that has been underpinned vs one that hasn't. If it's been done and there is a guarantee on the work, then all should be covered. Better it's been done & paid for than I go somewhere else and get a surprise bill in a few years time. It's just whether Mr Surveyor for the Mortgage company agrees or decides to be a pain.

It's the fear of being caught by something I didn't pick up on, that means i'm stuffed later on when i go to sell. That vs the fear of having to go back out on to the market. Lots of friends asking how 'exciting it is' buying a house for the first time...which it is, when it's not utterly frustrating, terrifying and hellish.

dacouch

Any "Surprise" bill you received in a few years if a different property you purchased developed subsidence would not be very big.

The Insurance should cover the very large costs involved in correcting the subsidence. The only part they won't cover would be the excess which is typically £1k which would be shared out amongst the leaseholders or taken out of the sink repair fund.

The premiums would probably increase after paying out for the claim.

The property you're currently looking at is almost certainly already subject to increased premiums due to the previous subsidence

Brown_Eyed_Girl

It's just so difficult to find information on what the implications are, particularly when its a leasehold and there are several flats. Most of the stuff I've seen has been where it's someone buying a freehold, which is obviously more of an issue as your responsible for the whole property.

At the moment we have no idea if this is why the valuer has put it on hold, they've not come back to us to say. But hopefully buy the end of the day we'll know if it's going ahead or not.

All a bit nail biting and feels like it's down to one person (who hasn't even seen the place) as to whether this goes ahead or is just killed dead

dodo01

Don't go anywhere near it let it be someone else's problem I have just pulled out of my purchase a week before completion as lender wouldn't give us the mortgage. Uninsurable near enough. Next time I wouldn't even start the process if any mention of subsidence end of.