Subsidence issue

timmy_bolt

Hi,
We're currently in the process of buying a house but have come up against a hurdle and could really do with some opinions. I've already read a lot on the subject so ideally I'm keen for opinions of what you would do and similar experiences you may have had.
Will try and keep things concise
- We currently are renting a property which we had been offered to purchase which we took. We love the house, perfect size and just in the right location. We are also cash buyers (more on this later).
- The property was built around the 1900s from stone.
- There has always been some external cracking to one of the walls which had new mortar at some point. This had opened up further after the new mortar albeit we arnt aware when. All before our time here. It doesn't appear to have gotten worse since we have been there.
- the survey report identified additional cracking (and we found some more subsequently) all at one end and thinks the likely reason is down to localised subsidence. There are a few very clear bad practices (downpipes emptying straight onto soil bed at base of property), ceddar tree (albeit small) growing against the house. 
- there are very few signs internally of cracking (just a bit on the cornice and ruffled wallpaper). 

So onto some questions 
- for the purposes of insurance, future sale, do we now have subsidence we have to notify? The surveyors report wasn't absolute (there is also a slightly bowing roof not helping matters)
- how difficult is it really to sell a property with this label (assuming it doesn't get worse) at a close to market price? We are likely moving on in 4-6 years, this isn't the "forever house". 
- same again, but for purchasers acquiring a mortgage in future. The mortgage question has come up quite late in the day as we're cash buyers so obviously no mortgage company to raise the red flag. I'm concerned noone has "rectified" the issue so how would a future buyer ever be able to convince a mortgage company it is ok / not getting worse? We could obviously start measuring from possession for several years with a surveyor / SE, is this the only way..? 
- There is no history of subsidence in the area and the ground is known for being good, so we feel the risk of things getting worse is low provided we do the measures above, but we're concerned about an onward sale. 
Thoughts are welcome, if you've been in a similar situation even better!
Many thanks

T

steadfast123

I have just sold a house with subsidence. Bought it 13 years ago. There was evidence of ‘long-standing and non-progressive movement’- I later found out due to the land the house was built on. It was a Victorian terrace and the whole row were effected by the issue. Over a period of about 5 years cracks gradually started to appear in the cornice and an interior wall. I made an insurance claim. They did investigations to rule out problems with tree roots or the drains and basically tarted it up. The same cracks came back after another 5ish years. I just sold for about 15% below market value and slightly less than I paid for it. To be honest I thought I would struggle to sell it at all. My buildings/contents insurance was £65 a month when I left.

The whole subsidence issue was stressful and had I realised the implications, I wouldn’t have bought the house in the first place. Or certainly paid less to reflect the issues. 

timmy_bolt

Thanks for your response steadfast. I'm increasingly getting the feeling that progressing this would be a case of heart before head ... 

SMR710

Walk away!! 

Semple

I always get the impression that subsidence (even when rectified) always carries a big red flag. Even if it was sorted, there's always that question as to whether it would happen again. 

Considering the increased insurance costs, and potential loss in value of the property for future resale, it's not something I'd even consider. 

Rural_Puppy

Check the cause of the subsidence. Might be due to broken drainage?

timmy_bolt

Rural_Puppy said:

Check the cause of the subsidence. Might be due to broken drainage?

Thanks for the response
There isn't any drainage at that end of the property, all our drainage runs along the back. The downpipes in this area just pumps water out onto the flower bed that runs along the edge of the house.

I potential and probably exasperating cause but as I've read, you never know the true cause and solution until you've got maybe 20 years of no movement recorded.

Hannimal

I'm buying a property on an area with subsidence. Mortgage provider seems to not be fussed. There is no cracking the the building and to my awareness no historical problems with subsidence.

timmy_bolt

Hannimal said:

I'm buying a property on an area with subsidence. Mortgage provider seems to not be fussed. There is no cracking the the building and to my awareness no historical problems with subsidence.

From what i can gather areas of subsidence have slightly increased building insurance premiums but not much other negative effect. From reading elsehwere - most banks are happy to provide you a mortgage provided you can get insurance with a mainstream insurer. Having researched it doesn't look like we can. 

blue_max_3

You could allow a sum to make repairs/underpin and knock that off the purchase price. I'm sure once fixed, you would have more luck with the insurers.

timmy_bolt

blue_max_3 said:

You could allow a sum to make repairs/underpin and knock that off the purchase price. I'm sure once fixed, you would have more luck with the insurers.

Yeah we were thinking about that, but as others have said, once your property is flagged as subsidence it will always be. Suppose we could ask cost of repairs and overall deduction... Stil not sure the stress of selling is worth it as per first response. Argh!
Thanks