Buying with subsidence

trynsave

I have offered on a place that I've just found out was underpinned nearly 30 yes ago. Buyers say it was due to broken drainage and there is a building control cert which we've seen. However, that doesn't say what was affected and exactly what was needed to remedy the issue. The problem was prior to current owners. I can get a full structural survey done but what would that add if the house doesn't show cracks etc now. Also we are cash buyers and love the house, but what future issues could be lying in wait if we need to sell? Will mortgage and insurance companies be put off old issues like these? Are we buying a ticking headache that we will struggle to sell?

Phil4432

trynsave said:

I have offered on a place that I've just found out was underpinned nearly 30 yes ago. Buyers say it was due to broken drainage and there is a building control cert which we've seen. However, that doesn't say what was affected and exactly what was needed to remedy the issue. The problem was prior to current owners. I can get a full structural survey done but what would that add if the house doesn't show cracks etc now. Also we are cash buyers and love the house, but what future issues could be lying in wait if we need to sell? Will mortgage and insurance companies be put off old issues like these? Are we buying a ticking headache that we will struggle to sell?

If a house has been underpinned, it would probably be more stable than other homes in the area.  30 years is sometime ago, clearly the house has been stable since then.  A full structural survey would be advisable, and if the problem has been fully identified and rectified, as said you may have a home more stable than that of your neighbors.

However, insurance companies don't see it that way.  Neither do potential buyers if you are planning to sell, as you are experiencing.

I was in the same position with a house 3 and a half years back.  I avoided it.   

Davesnave

Phil4432 said:

trynsave said:

I have offered on a place that I've just found out was underpinned nearly 30 yes ago. Buyers say it was due to broken drainage and there is a building control cert which we've seen. However, that doesn't say what was affected and exactly what was needed to remedy the issue. The problem was prior to current owners. I can get a full structural survey done but what would that add if the house doesn't show cracks etc now. Also we are cash buyers and love the house, but what future issues could be lying in wait if we need to sell? Will mortgage and insurance companies be put off old issues like these? Are we buying a ticking headache that we will struggle to sell?

However, insurance companies don't see it that way.  Neither do potential buyers if you are planning to sell, as you are experiencing.

I was in the same position with a house 3 and a half years back.  I avoided it.   

Your choice, of course, but if there is a cert in place for the work and no subsequent claim, I'm not convinced your assessment here is accurate. Did you actually obtain quotes and was there a discount on the price?

More relevant, has the OP sought an insurance quote yet?

I ask because my daughter bought a house with 25 years on the clock after underpinning and her insurance cost is normal. She obtained some discount on the price, but as it's past 30 years now, I'd expect that requirement to have faded away on resale, though she isn't going anywhere. Most importantly, by buying the house described, she was able to get a foothold in a desirable area where this sort of issue is likely to have much less impact.

trynsave

Davesnave said:

Phil4432 said:

trynsave said:

I have offered on a place that I've just found out was underpinned nearly 30 yes ago. Buyers say it was due to broken drainage and there is a building control cert which we've seen. However, that doesn't say what was affected and exactly what was needed to remedy the issue. The problem was prior to current owners. I can get a full structural survey done but what would that add if the house doesn't show cracks etc now. Also we are cash buyers and love the house, but what future issues could be lying in wait if we need to sell? Will mortgage and insurance companies be put off old issues like these? Are we buying a ticking headache that we will struggle to sell?

However, insurance companies don't see it that way.  Neither do potential buyers if you are planning to sell, as you are experiencing.

I was in the same position with a house 3 and a half years back.  I avoided it.   

Your choice, of course, but if there is a cert in place for the work and no subsequent claim, I'm not convinced your assessment here is accurate. Did you actually obtain quotes and was there a discount on the price?

More relevant, has the OP sought an insurance quote yet?

I ask because my daughter bought a house with 25 years on the clock after underpinning and her insurance cost is normal. She obtained some discount on the price, but as it's past 30 years now, I'd expect that requirement to have faded away on resale, though she isn't going anywhere. Most importantly, by buying the house described, she was able to get a foothold in a desirable area where this sort of issue is likely to have much less impact.

Thanks both. This shows the dilemma we are in.
I have gone online for building insurance quotes, 9 as opposed to 50+, £300-500 instead of £85-£120. It is the future saleability that concerns me though, and I suppose only we can decide what we are comfortable with, as should a full structural say it's now fine, that doesn't mean the next family will agree or be able to get a mortgage. The house is great, but it went to best and final and the underpinning wasn't disclosed. Therefore I know we have offered more than we perhaps shoulduld have done, as I'm assuming that the underpinning means that it isn't worth as much as it's semi-detached neighbour. 

[Deleted User]

I wouldn't be proceeding with that price on a house that went to sealed bids and the underpinning wasnt disclosed ! You would have bidded way over the top. Also in this current climate that would also concern me too. 

Mickygg

I agree with Densol.

Not disclosing underpinning is underhand in my view.

I wouldn't be continuing unless I agreed a lower price. You agreed a price based on the facts at the time and now you have a house that will cost about £300 a year more to insure. Then you have covid adding a huge level of uncertainty.

trynsave

Think I'm beginning to see sense. The house being lovely is perhaps clouding my judgement.
Always good, and wise, to get impartial opinions. 

[Deleted User]

I bought a house that had previous subsidence.  Not uncommon in fenlands of east anglia.   I paid a fair price for it and my next door neighbour sold for even more a year or 2 later.   The key thing though is that the house is cheaper than others around that hadnt had subsidence.   It all depends on what price you are paying

£265k for a 3 bed house with previous subsidence 25 years prior against £350k for one without.   Thats ok in my book and any future buyer would understand that I am selling the house with that factored in already. 
If your house with historic subsidence is the same price as one without then renegotiate or walk away.  If the price is already lowered due to the fact its less desireable then crack on

My insurance is normal rates as well,  my insurer only look at 10years for subsidence.  

Davesnave

Mickygg said:

Not disclosing underpinning is underhand in my view.

It's foolish, especially as the certification was available, but the seller hoped for  premium price and almost got it. Ultimately, a deal survives on trust.