Subsidence on Neighbouring Terrace

Firsttimebuyers

I'm looking for a bit of advice, we've just viewed a terrace property, from approx. 1920s-1930s which is in need of some renovation.


It's been up for a while, as it seems that most viewers are put off by a large crack forming on the neighbouring terraces exterior wall (we're assuming subsidence) but the sellers have a surveyors report showing there is (currently) no impact on their property.


Would we be likely to get a mortgage on this property, or would a banks surveyor say no?

lincroft1710

"Currently no impact" can easily change. Different lenders will have different criteria. Subsidence can be relatively easily rectified or lead to demolition of the affected dwelling(s).

Until you make further enquiries or have a full structural survey and structural engineer's report carried out, you won't know if the house is worth offering on.

Firsttimebuyers

Thank you


The vendor had the survey and report for us to view that they'd had undertaken - but obviously we'd need a second opinion on it.


It's priced very attractively for the area, and we do have money for renovations - but obviously as the affected part is currently on the neighbouring property then we'd be reliant on the owner of that house to fix the problem rather than ourselves.

lincroft1710

Your vendor's survey was carried out for them as vendor. You need one for you as a buyer. Anything untoward on a neighbouring property can be extremely difficult to identify the root cause and whether or how far it will affect neighbouring properties.

Do be aware that there are some 1920s/30s terraced houses known as "subsidy housing" which were rather basically and cheaply built.

Cakeguts

Firsttimebuyers wrote: »

Thank you


The vendor had the survey and report for us to view that they'd had undertaken - but obviously we'd need a second opinion on it.


It's priced very attractively for the area, and we do have money for renovations - but obviously as the affected part is currently on the neighbouring property then we'd be reliant on the owner of that house to fix the problem rather than ourselves.

It is cheap because there could be problems with it. You are going to need some very good surveys. A structural engineer's report might be a good idea as well.

Arklight

If you are willing to go in with your eyes open then it may be OK.

My experience was that we offered on a semi, and underpinning on the other half of it only came to light when we got the searches back. It had been done in the 80s.

Because it was the neighbouring property not the half of the building we wanted to buy, it was impossible to make a real assessment of the problem. We could get an engineer to assess "our" side, but the problem was the other side. And the shift had clearly causes historic cracking in "our" property, which was mentioned as longstanding and not current in our mortgage valuation survey from our surveyor who had been unaware of the problems next door.

It was very very hard to get any informed advice on this from anyone (our surveyor, the vendors and their EA were no help) and I was down to being told things like I should knock on the door of the 80 year old lady who lived there and ask her what she remembered, or try and find the builders who had done the work in the 80s and ask them what had been wrong.

Insurance for subsidence affected or near subsidence properties at the time (2010) was relatively easy to buy from some high street insurers who would offer boiler plate cover as long as you ticked the box to say your actual property hadn't been affected (and I wasn't sure I could) or had been unaffected for the last 10 years.

But the market changes, I looked for someone else last year and there were no high street insurers I could find who would were willing to offer on a home that had been affected by subsidence in the past ever, and a great many wouldn't if they were even near one.

After chatting to Adrian Flux (who were really helpful and can give you an idea about what you might be facing re. insurance) we decided we didn't want to take it on and pulled out.

The property did eventually sell at 10% less than what we offered. I saw just recently that the old lady's side is up for auction. It's listed as unmortgageable as the subsidence has returned and it's currently on the move again. With a very low guide price.

I can't believe that hasn't clobbered the neighbours value as well, as it's effectively the same building. The listing said that remedial works might be taken out by the insurers but only when the building had settled. How long that might take I don't know. I presume as well as the loss that properties buyers now face they also will find it next to impossible to sell while they wait for whoever their new neighbours are to sort the subsidence again. Something they have no control over.

I am very glad we didn't buy it.

Firsttimebuyers

Thank you all


We're taking a builder with us for another viewing, to see if we can gain any insight on how bad the problem might be.


The Street in question has over 200 houses, all built in the same decade and it doesn't seem to be a common problem in the area (we live in the next street along, and I have family and friends who have lived in various parts of this street for years) so I don't think it'd be classed as subsidy housing as they generally have a reputation for being very solidly built.


I agree with what you're saying about the Surveyor working for the Vendor, obviously she's had this done as all the feedback from previous viewers have mentioned it - it's an extremely popular area for investors / buy to let so the fact that none of them have gone for the house worries me slightly.


I'm trying not to let my love for the area and this house convince me to make an offer if it's unmortgagable anyway - but it's obviously very tempting when it's currently up for £35k less than a 'done' house goes for on that street, and we'd probably offer £10k less than it's up for.

AlexMac

Good luck; it's hopefully not an impediment to purchase. In our area of SE London, the substrate (sands and gravel rather than London Clay) is very stable so subsidence isn't usually an issue; except in exceptional events such as the summer of 1976
https://www.metoffice.gov.uk/news/releases/2016/heat-wave

Then, some houses which had stood for over 75 years moved a little, and you can still see the odd ripple, in the (now repaired) terrraces.

And it wasn't til after I bought a house in one such terrace in 1985 that the neighbour said that after a WWII V2 doodlebug exploded nearby , her mum could speak to my predecessor through a crack which opened up in the party wall between their two hallways! Yet the house was now sound as a bell.

But assuming it passes the lender's survey (and if it doesn't, you've only gambled a couple of hundred quid, assuming your solicitor delays any other chargeable searches, etc til you know you have the offer) then get your own surveyor in as you won't be able to claim on the Vendor's one's Professional Indemnity if it does go t1ts down.

Firsttimebuyers

Thank you - that's very helpful!


We definitely wouldn't start solicitors searches going until we knew we could get the mortgage!