Cash buyers only

Thecrazy1

Hi, I have seen a property that I am interested in purchasing. Although it needs a bit of cosmetic work, the main issue is the fact that it had some cracks in the brickwork due to a broken drain. The crack has been fixed and there is a certificate for the works. The vendor is asking for cash buyers only which I am. However, is cash buyer only a result of the subsidence and will it affect insurance, resale etc? What should I look out for? Thanks

dinkylink

If it's cash buyers only, presumably it's unmortgageable, which would still likely be the case when you come to sell it. So yes, it would very much affect resale value.

Thecrazy1

Is there any way to find this out before putting in an offer?

Martin_the_Unjust

Ask the owner? Ask the estate agent? Both of these would be hit and miss

Talk to the neighbours? Get a builder to view and report on it for you? etc etc

lookstraightahead

You could ask the vendor why and if they've had a structural engineer/ RICS surveyor  look at the property. 
In fact, I would say it's a must.

lookstraightahead

dinkylink said:

If it's cash buyers only, presumably it's unmortgageable, which would still likely be the case when you come to sell it. So yes, it would very much affect resale value.

Vitally important point.

Davesnave

Thecrazy1 said:

 What should I look out for? Thanks

You should look out for your own structural engineer to inspect the works if you are really interested. Your solicitor would handle the certification which ought to have been signed off with building control, but you could look that up on the council web site yourself.

The property should be insurable if everything checks out and in time it might become mortgageable too. Insurance will cost more, probably for 20 years.

My daughter owns a house that had subsidence due to an underground stream in 1995. It was all repaired properly and the stream culverted. She has a mortgage and the insurance cost is now 'normal,' but she paid about 5-10% less for the house than usual in that road. Daft really, as it's stronger and better than the neighbours'.

greatcrested

Are there tenants living there? Might be nothing to do with the drain.....

Tiglet2

Or is the property built by non-standard construction?

AdrianC

Or short lease, or...

There's a number of reasons why it may be unmortgageable. Properly-repaired historic subsidence is fairly low on the list.

eddddy

You should definitely ask the EA why the property is advertised for Cash Buyers only.

FWIW, the EA is required to find out relevant information about the property, and by law must tell you any material information that they are aware of - whether it is positive or negative.  (But some EAs don't always obey the law!)

So ask questions like whether any previous offers fell through (and if so why); what the seller knows about the cracking; whether any professional reports have been done about the cracking; whether the property is insured and whether an insurance claim is being made; etc