Getting a mortgage and subsidence? Please help!

Hmsxxxx

Hi!
So me and my partner have been planning on purchasing his mums house for a discounted price (so a consessionary purchase) next year. We went to a mortgage broker who did us a DIP so we knew we could borrow what we needed, all we need is money for the fees and have been spending the last year chucking money at our debt so that this is possible. BUT!
the last few months over the hot months we’ve been having we noticed cracks and movement to the exterior and a room inside the house. His mum has gone through her insurers who have sent someone out and has said that they believe it is due to the roots of a very large tree in the neighbours garden (we also thought this) and so are going to try and claim from our neighbours insurer and have said the work will start in November.
What we want to know is: now that this house is going to have the subsidence tag will anyone give us a mortgage? Will we be able to get insurance? And if we were to buy and sell in the future will this be a big problem and be stuck with it forever?
We are desperate to get on the housing ladder and see this as our only way to do it anytime soon but at the same time we want to be realistic! If anyone could shed some light as we are feeling rather deflated now, thanks!

ACG

You will not be able to get a Mortgage against the property until the works are complete. I think you will need some sort of insurance policy for the works.

With regards to buildings insurance, you may only be able to get insurance that costs an arm and a leg for a while and/or comes with a large excess for subsidence. That in itself could put some lenders off - but not all.

Maybe speak to an insurance broker about it and see what they come back with.

LadyDee

If the subsidence is dealt with under the mother's policy, ensure that they agree to continue cover after the work, and you could well find that the rate won't increase very much.

I had a house with subsidence which was underpinned by my insurance company whilst I was negotiating a sale. The insurers agreed to continue cover under new ownership and he told me that his policy was no more expensive than I would have expected due to annual premium increase.

He had absolutely no trouble getting a mortgage.

Hmsxxxx

Yes the work is starting in November and we are planning on buying it next year, He did say we would get all certified paperwork to show that the work has been completed. I did read up about transferring the insurance policy to us when we buy so I’m very hopeful about this. My main concern is just having trouble selling it on when the time comes..

MortgageMamma

Remember you are buying this property well under value and the work will have been done to an acceptable standard and you will have the paperwork to prove it. It shouldn't be difficult to get a mortgage in that situation - but make sure you go back to your adviser and have the paperwork to hand for a potential lender. Good luck with your purchase.