Mining report impact on nationwide mortgae

Waller97

Hi all,

we have already had our nationwide mortgage offer issued last week (22 July) but my solicitor ordered a mining and subsidence survey to be completed in June which found former mining in the area and man-made cavities in the area related (we were already aware that the property was in the area of previous mining work) but clear for all else and no damage claims or subsidence claims in the area. Our solicitor is saying that nationwide haven’t replied to the mining report specifically to confirm that they have read it and are happy to lend despite this finding. Has anyone had this and do they think this will be a problem? We have already had a survey done which showed no structural issues in the property So not too concerned about this but don’t really want another delay and nationwide have already issued the mortgage offer so not sure if they could withdraw it?

thanks in advance 

thomas1112

This will depend on the policy of the lender.

We recently had a coal mining report completed and the front cover had an advisory item listed but nothing listed in "refer to lender", it was just a minor point for our attention only.

Looks like you may need to wait for the lender to respond in this case as your solicitor obviously felt it needed bringing to their attention.

It may be that they request further surveying work or refer back to the valuer to determine if this finding could impact the value of the property (and therefore their security).

The mortgage offer can be withdrawn if something is brought to the lender's attention that may make the property unsuitable security. Your solicitor will also be acting for the lender so will need to look after their interests as well as yours. I imagine this would be an extreme measure though so don't want to worry you.

Unfortunately I think in this case you will just have to wait for Nationwide to respond.

K_S

Waller97 said:

Hi all,

we have already had our nationwide mortgage offer issued last week (22 July) but my solicitor ordered a mining and subsidence survey to be completed in June which found former mining in the area and man-made cavities in the area related (we were already aware that the property was in the area of previous mining work) but clear for all else and no damage claims or subsidence claims in the area. Our solicitor is saying that nationwide haven’t replied to the mining report specifically to confirm that they have read it and are happy to lend despite this finding. Has anyone had this and do they think this will be a problem? We have already had a survey done which showed no structural issues in the property So not too concerned about this but don’t really want another delay and nationwide have already issued the mortgage offer so not sure if they could withdraw it?

thanks in advance 

@waller97In areas of historic mining activity, conveyancers will usually undertake a mining search appropriate for the area. I'm not entirely sure on how the report is then processed by the conveyancer, but if it goes to Nationwide they will usually refer it back to the valuer who prepared the valuation report.

The valuer will then assess it to confirm that the property is unlikely to suffer from future mining subsidence, that there is no material impact on its saleability and that other major lenders will accept similar properties as security. In the unlikely event that they aren't able to confirm the above, they may revise the valuation to 'unsuitable' leading to the offer being withdrawn.

Nothing to worry about at this point and hopefully none of that happens, good luck!

user1977

Waller97 said:

 found former mining in the area and man-made cavities in the area related (we were already aware that the property was in the area of previous mining work) but clear for all else and no damage claims or subsidence claims in the area. 

In which case, why does your solicitor think they need to run it past the lender? It wouldn't be normal to ask the lender for their views unless there was something materially adverse (e.g. a shaft nearby or previous claims). Possibly they're being overly-cautious- in which case you just need to wait for the Nationwide to roll their eyes and tell you it's fine.

kingstreet

Typically, shafts, adits or entries within 20m of the property will get extra scrutiny. In such circumstances expect to be asked to obtain evidence of buildings insurance at standard terms.

Anything within 5m may see a downvaluation.

I've worked around the Stoke On Trent coalfields for over 30 years.

Waller97

Thank you all for the replies. To confirm, we still havent had the document checked by Nationwide so it has definitely delayed us!

user1977 said:

Waller97 said:

 found former mining in the area and man-made cavities in the area related (we were already aware that the property was in the area of previous mining work) but clear for all else and no damage claims or subsidence claims in the area. 

In which case, why does your solicitor think they need to run it past the lender? It wouldn't be normal to ask the lender for their views unless there was something materially adverse (e.g. a shaft nearby or previous claims). Possibly they're being overly-cautious- in which case you just need to wait for the Nationwide to roll their eyes and tell you it's fine.

This is my frustration, i have spoken with Nationwide and they confirmed they would not have asked for the report and are only going to assess it because the solicitor has asked them to. I appreciate that the solicitor is probably trying to be helpful but it doesn't say anything of consequence so feel it was an unecessary delay to be honest.

kingstreet said:

Typically, shafts, adits or entries within 20m of the property will get extra scrutiny. In such circumstances expect to be asked to obtain evidence of buildings insurance at standard terms.

Anything within 5m may see a downvaluation.

I've worked around the Stoke On Trent coalfields for over 30 years.

Im not sure if these would have been found in the basic mining and subsidence report. I was going to order a more indepth report through the Coal Authority but the website told me based on my property boundaries that we arent on the coalfields and they wouldnt recommend ordering one. We are in Norfolk so i think chalk mines are probably more likely to be the culprit although not sure if there are any further surveys for those?

Tracyd21

Hi, I know this is an old comment,  but I was wondering how you got on with this? We are in same boat with coal report being sent to nationwide nearly 4 weeks ago and we haven’t heard anything back. Im the one selling, our buyers solicitor just keeps saying ‘nationwide will get to it when they get to it’ and doesn’t sound likes he’s actively doing anything to get it pushed through.  Nationwide took far too long to sign off the mortgage as well and it took their mortgage advisor sending a disgruntled email to someone high up before it got signed off. I’m worried NW will just sit on it and we were meant to complete weeks ago and still sitting here in limbo! 

How long did NW take to get back to you? 

DogMom80

Hello, I'm in the same boat now.. How long did you have to wait for Nationwide to get back to your solicitor?

neftirini

Hi @DogMom80 @Tracyd21 @Waller97 how did nationwide get on with mine shaft report?