Subsidence concern while buying a property.

BigCoffeeMonster

Hi all,

I'm in the process of buying a terraced house and found out the neighbour has a subsidence issue just a couple of meters from my prospective house. It relates to a tree, which was cut down last month, but the structural damage to the neighbour's property still remains and I'm not sure if/when they're likely to repair it. 

I'm leaning towards walking away from the purchase due to all the unknowns and the fact the price was agreed before knowing about the neighbouring subsidence issue.

The way I see it, I either walk away from the deal or only proceed at a lower price. Not sure how I'd calculate a new price %-wise given the unknowns, possible insurance implications, possible difficulties selling later on and worry I might start to feel once in the place.

Does anyone have any thoughts or suggestions?

Huge thanks from a first-time poster.

jbrassy

If it was me - I would walk away and cut your losses. If you go ahead and purchase and also suffer from the subsidence, it could have a huge impact not only on the value of the property, but also your ability to sell it in the future. This is without even mentioning the cost/stress of dealing with the subsidence and the higher buildings insurance premiums you will pay in the future. 

Like you mention in the post - the unknowns are potentially very big, so just walk. There will be other homes you like out there.

PRDMKT

Different people will have different perspectives on this situation. Some might think you're being overly cautious since the subsidence relates to another property and not your own. Personally, this would worry me and could constitute grounds for withdrawal.

Firstly, consider the cause of the subsidence. If the tree that caused the issue has been appropriately dealt with and your property is unaffected, that should, in theory, reassure you that the problem is unlikely to worsen. However, there are several factors to consider:

- How close is the subsidence to the boundary of your property, you mention a couple of meters, but this is very vague and the difference could be substantial?

- Has the tree been removed or managed properly?

- Is the neighboring property undergoing underpinning to address the subsidence?

Since the subsidence doesn't directly affect your property (assuming this is the case), you may have limited grounds to renegotiate the price. The sellers will likely know that this issue may not deter other buyers.

On a side note, can I ask how you discovered this issue?

You can always put forward a new offer based on this information and the perceived risk. However, I would be prepared to walk away if the sellers do not accept.

Ultimately, you could always instruct a structural engineer to investigate the matter further?

BigCoffeeMonster

thanks for the comments - I do appreciate them.

Brief details in response...

In all honesty, I have no idea if the neighbour is going to fix the issue. I'm guessing they are, but that is part of the unknown. Are they covered by insurance? Can they afford the repair? What will happen if they can't fix the issue? The neighbour in question is old and the conversation about the issue was confusing. They also seemed stressed out about it which is completely understandable.

A neighbour told me about the issue when I was there having a look round site after agreeing the price on the property. The tree was cut down by the managing company for the site, but it took ages to get confirmation that it was cut down as a result of subsidence.

I could have a structural survey done, but I'm not sure to what extend they would be permitted to investigate an issue on a neighbouring property. The terraced houses are staggered in formation and the subsidence has occurred on the wall which joins my place but protrudes two metres further out if that makes sense. The survey I had done didn't show any subsidence on my property, but it didn't pick up on or discuss the issue with the neighbour's property.

TheJP

To me this is a no goer for all the points you raise.

1. You haven't had a structural survey done to see if this affects the property.
2.Concern over future resale.
3. Enjoyment of the house with a cloud over your head.

I would walk away, plenty more fish in the sea.

Slinky

I'd walk away. You are going to encounter difficulties getting insurance for one thing.  Our house had subsidence resolved over 30 years ago and our pool of insurers is limited even now.  No insurance company is going to want to take on a property where unresolved subsidence next door in a connected property exists. 

There will be something else out there for you.