Subsidence /underpinning

nina2011

Hello,
ive found a property that im interested in purchasing a 1930s fixer upper the issue is that the sale is through power of attorney. I’ve had a structural beginner do an assessment and they have advised severe subsidence and distortion through the house re floors/windows etc. 

The seller is the POA and has had the property unoccupied for 15+months , he no longer had building insurance and there is no evidence that any they have ever made an insurance claim as the owner is now 90 and in a care home. 

Gut feel is I don’t want to give up on the property but I think me raising the issue of subsidence to the seller will make him shut down discussion of a sale and go for a cash buyer. Is there any way if he isn’t in a current policy of insurance for the building he can claim on previous ones ?

hazyjo

nina2011 said:

Gut feel is I don’t want to give up on the property but I think me raising the issue of subsidence to the seller will make him shut down discussion of a sale and go for a cash buyer. Is there any way if he isn’t in a current policy of insurance for the building he can claim on previous ones ?

Absolutely not. If they're not insured, they're not insured.

Unless you get a sizeable discount and don't mind the stigma, I'd be walking (running)...

Did you have a survey yet or were you getting severe cracks looked at first by a structural engineer?

maxsteam

nina2011 said:

Is there any way if he isn’t in a current policy of insurance for the building he can claim on previous ones ?

It depends how long ago the previous policy expired. It's probably a while since there was insurance so it's unlikely that he can claim. It's even less likely that you can claim.

You should get some quotes for remedial work and include such figures in your budget before making an offer. It's unlikely that the vendor will want to do anything more that provide access to surveyors and say "yes" or "no" to offers. If you are not a cash buyer, you also need to consider how lenders will view the property.

deannagone

You knew the property was a fixer upper and I assume is priced accordingly?  What is the price like compared to similar but not fixer upper properties in the area?  I would not depend in there being buildings insurance that will cover the subsidence, put fixing the subsidence in your budget.  and see if its still worth buying, or walk away.  If you want to stay with it, get a reliable builder to look at the property and give a quote. Quite often a knowledgeable (stress the knowledgeable) builder quote can be less than the surveyor quote. 

But it is worth discussing the surveyors report with the POA person before walking away if you are interested.., they may not know, they may suspect there is a problem.  They may close a conversation down, they may be reasonable and take the need for repair into account, you don't really know without asking.

AdrianC

nina2011 said:

ive found a property that im interested in purchasing a 1930s fixer upper
...
I think me raising the issue of subsidence to the seller will make him shut down discussion of a sale and go for a cash buyer

Is it even mortgageable, in its current state?

eddddy

Just to clarify - does the structural engineer suspect ongoing subsidence? Or is it historic subsidence?

Some older properties subsided a long time ago, and were stabilised (with underpinning or whatever) and haven't moved since. It's often not possible to undo distortion when a property is stabilised, so it remains distorted for the rest of it's life.

How old is the property?

Alter_ego

eddddy said:

How old is the property?

First line of first post

cattie

My advice is to run away, quickly. A house that is or has suffered subsidence & has no buildings insurance would be a huge mistake. Even a cash buyer would think twice unless the price was absolutely rock bottom. It doesn't sound as if the house has a certificate of structural adequacy, which it should have if it's ever had remedial work carried out & as such the house will be very costly to insure, should an insurance company be found who'd be willing to take it on.

A mortgage on the property could be hard to find too. Houses with such problems usually end up having to be auctioned & attract mainly developers.

lookstraightahead

You need to get a structural engineer in to see if it's historical or ongoing.