Buying a house with crack on both side

London_2020

We're first-time buyers looking at a 3-bed mid-terraced house. While most of the cracks in the rear bedroom are minor hairline cracks, one near the window is more significant at 6mm wide and 560mm long. This crack other side has patch work clearly visible from the garden but width can't be measured. We've had a Level 3 survey and a structural engineer's report to investigate the cause and check for subsidence. The engineer's report is somewhat ambiguous, suggesting possible subsidence or movement needing immediate attention, and recommending helibar reinforcement. The seller has reduced the price by £10,000 to cover the repairs, which aren't considered costly.

Our lender is happy with the report and willing to provide a mortgage, but our insurer won't cover subsidence, meaning we'll likely need specialist insurance. We've already spent considerable time and money on surveys and searches, and are now unsure what to do. We're worried about the insurance implications and the long-term impact of the repairs on future remortgaging and resale. We're not looking for professional advice, just thoughts and second opinions, especially from anyone who has dealt with a similar situation.

FreeBear

Some photos of this crack showing most of the building so that it can be put in to context would help.

Generally, subsidence would produce cracks at ground level propagating upwards. Cracks due to roof spread would start at the top and work down. If you have cracks starting at the bottom of a first floor window, have a look at what is below - Chances are, there is another opening (window or door) that is lacking adequate support. If this is the case, installation of a lintel combined with Helicoil reinforcements should fix the problem. BUT do not take the advice of some random on the internet or that of a builder. You need to get an expert opinion from a structural surveyor along with a recommendation to fix.

As long as the SE doesn't conclude that the cracks are the result of subsidence, you should be able to get insurance - If there is subsidence, then the wall will (probably) need underpinning, which is going to bump up repair costs considerably.

London_2020

Thanks much for your comment. We have taken the advice from SE and he has mentioned the crack is likely caused by subsidence and foundation movement and for repair he suggested helicoil reinforcement not underpinning.
There is sliding door below the window and conservatory. As per the seller the crack appeared after they have installed the flat roof on the conservatory.




Insurers are not comfortable with wording and suggesting to go for a specialist insurer.

I have to plan to sell the property in the next 4-5 year so I am not concerned about the property resale value that has cracks repaired.
I have attached some pictures (picture 1 and picture 4 are concerning) that was taken by the surveyor.


Pictures of cracks.

jimbog

Why are you interested in this particular house? All I can see is headaches ahead

Bobbityboo

How much has been estimated for the repairs? You mention in your opening post about them not being costly.  When you come to sell this it will put of a percentage of buyer as will the insurance difficulties. So buying and repairing it is going to limit your market. You mention you plan on selling in 4 / 5 years, that’s not very long.   Are you getting this house for a substantially discounted price?  It wouldn’t attract me at all.  I would rather buy one that has less work that needs doing.  In fact we discounted a really lovely house because it had bad cracking.  Are there not houses that are less complicated, particularly as you aren’t planning on a particularly long term ownership of it?  

RelievedSheff

I'm afraid I would be running a mile from that one!

Those are not insignificant cracks.

London_2020

We appreciate everyone's comments. The repair cost is between £6-8k and does not need underpinning and just the reinforcement would be good enough as per SE.

The past one year and half experience of our property searches have shown most properties, unless recently renovated, have some or the other issues. As, we like the property and area we are evaluating whether these cracks are manageable or not. Also, the seller is now ready to reduce the price.

As per our mortgage advisor the lenders are generally reluctant to mortgage properties with a subsidence risk. Since, our current lender has conducted their own physical valuation and also reviewed the report provided by our SE and they are still willing to provide mortgage without any changes. Our advisor thinks there won't be any issues for remortgage in future. However, the insurance will be a struggle and need to go with an specialist insurer.

We have contacted the SE company to confirm whether the structural cracks are due to subsidence or settlement movement and thermal expansion.

In the mean time, we are trying to understand if the structural cracks caused by settlement are accepted by insurance and won't be of much concern for future resale value.

bobster2

London_2020 said

The past one year and half experience of our property searches have shown most properties, unless recently renovated, have some or the other issues. As, we like the property and area we are evaluating whether these cracks are manageable or not. Also, the seller is now ready to reduce the price.

Yes most properties have issues - but most don't have cracks like that.

I'm usually quite relaxed about cracks - but those would have me walking away.

And I've lived in a totally wonky house with slanting window sills (albeit much older than this one).

saganaki20

As someone who (unknowingly) purchased a house with cracking as bad as this (actually, worse) please don’t walk away….. RUN instead!

You are in for a whole new world of problems, for a £10k saving, whatever the price of the house, it’s just not worth it. You will be spending big money resolving this, and the headache that comes with it is a living nightmare. 

stuart45

How old is the property? Has the back been opened up to put in larger doors?
I'd prefer to know the exact cause when buying a property.

London_2020

This is 1935 property shows signs of structural movement (foundation movement) in form category 3 cracks, most likely due to settlement, according to SE. While the seller suggests the cracks may have appeared after a flat roof was added to the conservatory (date unknown), they aren't certain. We are also unsure if the rear of the property has been modified with larger doors.
Considering all this, seller is happy to negotiate the price . However, the historical movement will likely limit future resale value even after repairs. Therefore, after consulting with a surveyor and structural engineer, and valuable input from this group and others. We are inclined to pull out from this purchase.