Mines

Smarty29

Just would like to inform people of what’s going on with regards mines near to property . I’ve lived in my house for approx 18 years and am happy to say I’ve paid my mortgage off . I am 59 so worked hard and got a reasonably nice house in a nice street . When we bought our house the  mining report did say there were mines in the street within 20 metres of the house but were in no way likely to cause any damage or subsidence and had no problem getting a mortgage . My friend and neighbour who has been renting for quite some time has been offered the house to buy as the owner is 88 years old and just wants to sell . Every thing was going through signed deeds got mortgage in place until some bright spark said we need more info about the mines . Any way as soon as they were highlighted the mortgage lender pulled the plug and would not give them the mortgage . They went in to check with other lenders but no one will cough up the dough , some saying they don’t lend money for any properties with mines within 25 metre of the house . They are gutted the owner has cried and broke down with sadness . Surely something needs doing about the lenders refusing mortgages , our whole estate is riddled with mine shafts . Also at the end of the day any damage caused by such mines the coal board will insure against and sort any problems out . 

Solicitors have told the owner next door to sell the house a hell of a lot cheaper to a cash buyer . What does this mean for my wife and I do we now have a house that’s unsellable and worth a fraction of what we paid for it  . The mentioned mines will now affect at least 7 or 8 homes as we live in a culdesac . Be warned do not buy a house any where near to a mine shaft . 

user1977

That sounds a bit of an exaggeration - friends of mine have recent bought a flat with a mine shaft well within 25 metres of the building. It might restrict some mortgage options but it doesn't make a property unmortgageable.

fatbelly

West Cornwall is riddled with tin mines. Never heard of a problem.

It is, however, not possible to mortgage some properties constructed with mundic.

pinkteapot

Little confused about which house is being sold and who's buying it, but anyway... It'll just be that the buyer has inadvertently applied to a particularly risk averse lender (not HSBC, is it? They only like absolutely standard properties). As others have said, these properties are not unmortgageable. Buyer should speak to a mortgage broker who'll know which lenders will lend on it. 

caprikid1

fatbelly said:

West Cornwall is riddled with tin mines. Never heard of a problem.

It is, however, not possible to mortgage some properties constructed with mundic.

Same as North Bristol, must be something with the area and the quality of capping etc.

Linton

Coal mining subsidence is 100% covered by the Coal Authority.  Any industrial town north of Watford Gap could well have historic mine workings. There is no problem with getting people getting mortgages there.

Assuming that it is coal mining, it must be a situation peculiar to the precise location.

Mr.Generous

I purchased a house with a large grass park area probably 25 mtrs away, the grass area is where the mining shafts were so will never be built on. I purchased a mining report on the solicitors advice that basically said mining finished 40 years ago, if no movement by now never likely to happen - and the report concluded no reason not to buy - and included (something like) £50,000 of free insurance cover should the propertry need repairing or underpinning due to mining subsidence.

When I came to get building insurance they wanted an increased premium because of the mine work - after the broker chatted to the underwriters and provided a copy of the mining report they accepted it at a std premium. I checked when renewing and my rental properties all have exactly the same building insurance costs regardless of the mine works.

Smarty29

pinkteapot said:

Little confused about which house is being sold and who's buying it, but anyway... It'll just be that the buyer has inadvertently applied to a particularly risk averse lender (not HSBC, is it? They only like absolutely standard properties). As others have said, these properties are not unmortgageable. Buyer should speak to a mortgage broker who'll know which lenders will lend on it. 

My mate rents the house next door off my old elderly forma neighbour . The elderly owner is selling it to my mate . The owners solicitors have advised him to sell to a cash buyer for a lot less than the market price , due to the fact that my mates lender has with drawn the offer of a mortgage due to the mine in the street . My mate still wants to go ahead and buy the house but can’t finals any one who will lend them the money . It’s happening lenders are refusing to give out mortgages if mines are in the equation .
hope that makes sense 

Grizebeck

Whos your mate.....

LHW99

Try a (new / different) mortgage broker. Unless there is some known / visible effect on the properties in the location there should be a lender prepared to provide a mortgage.

Presumably these are coal mines, not salt or some other unusual thing?

gwynlas

What part f the country are you in? Rather than approach individual lenders your mate should look for a mortgage broker who can access the whole of the market and find a suitable product. It would be very unusual to have an entire estate blighted by mining unless it was because of sink holes suddenly appearing, Your former neighbour would be better off continuing to rent out the house rather than accept cash buyers only especially if they have family that they can leave the house to.