Previous Coal Authority Subsidence Claim

Cheeky_Mango_123

Hi,

We are first time buyers going through the motions of purchasing our first home which was built in the 1970s in South Wales which as majority know was notorious for coal mining. We have had the land searches back and it has been flagged by our solicitor that in May 1995 a claim was made for subsidence for £682.73 against the coal authority.

The solicitor has asked if we are happy to proceed but this has torn us now as we are unsure what decision to make after a bit of research and reading mixed reviews.

He has also advised that we check with home insurance companies and make sure we would be happy to pay the premiums. We have done this and it's about £30 - £40/ month and as the claim was almost 29 years ago and they said that they wouldn't consider it, but as the property is built on a coalfield, we need to submit the coal search report to the insurance company.

 We had a home buyer survey conducted and there wasn't any concerns of subsidence and the property appeared to be well looked after by the current vendor. After speaking to the surveyor he didn't appear concerned.

We spoke to people who have lived in the area for majority of their life and they have said this is normal and most properties in this area have a subsidence claim against it from back in the 90s(28 claims within a 50m radius).

Apparently, people found out that they were eligible to make a claim and could get money/ some renovations completed on their home. So majority of home owners apparently submitted claims. Unfortunately, the one on our property was successful.

Would this make the house potentially hard to sell in future?

Would home insurance be expensive going forward because of this claim?

Would it also devalue the property?

The solicitor is waiting for a decision, but we are a bit stuck at the moment weighing everything up.

DullGreyGuy

You're having second thoughts so you know the answer to question 1

How many insurers did you speak to find that premium? Most insurers as if there has ever been a claim and will recline online if the answer is yes. 

It will impact the value of the property but thats both when you buy it and sell it

Have you spoken to your mortgage broker about it?

Cheeky_Mango_123

True, but as we have spoken to more people and the surveyor wasn't concerned that any subsidence was present or is an issue at the property currently and there doesn't appear to be previous evidence of subsidence either. It has eased us slightly.

Not many insurers, we have checked on comparison websites and have called the insurers to confirm. We have noticed that when you do declare subsidence, it goes from 50 insurers down to 18 on comparison sites, indicating an increased premium.

Our mortgage advisor is currently away, but we are waiting for him to return on Monday so we can also discuss it with him as well. 

But when speaking to people (estate agent and surveyor) regarding this claim, they seem generally unfazed of this and we seem to get hit with "but we live in a coal mining area" which indicates its not uncommon here, but also indicates we could potentially get hit with the issue on another property within the county, if we potentially pull out of this and then go through motions on another property.

The property also ticks all the boxes which we were looking for and I think we would be hard-pressed to find another one similar at a similar price range. Which is making it difficult to just walk away from as well. 

user1977

Even in 1995, £683 wouldn’t have been significant works. It doesn’t sound all that alarming.

Cheeky_Mango_123

Which is another thing we have also considered and has been potentially put down to some possible replastering work/ decorative work.