Viewed Property with Subsidence – Worth the Risk?

Lets_fly

Hi all,

We’re first-time buyers and recently viewed a property that we really liked, especially because it’s in a premium location and priced quite low for the area.

However, the property has a subsidence issue, with visible cracks on both the inside and outside walls (photos attached). I spoke to a neighbour who said his house has the same problem, and it’s apparently due to the clay soil — movement happens between winter and summer. He also mentioned that there are large trees nearby, and the council had previously done some work to address the root issues.

My questions are:

• Is it worth taking the risk if the price and location are excellent?

• Are these kinds of issues reasonably fixable?

• Would this affect insurance, resale value, or mortgage approval?

Would love to hear from anyone who’s dealt with something similar or has advice.

Thanks in advance!

LoopyLoops

Wouldn’t even consider it!  The neighbour has said that movement happens, so still moving.  I would run away very fast!  I’m not an experienced buyer, but this screams NO! at me very loudly.  If you want to know about insurance ask the EA or the seller to let you know if they can get it / how much m

Section62

Lets_fly said:

Hi all,

We’re first-time buyers and recently viewed a property that we really liked, especially because it’s in a premium location and priced quite low for the area.

However, the property has a subsidence issue, with visible cracks on both the inside and outside walls (photos attached). I spoke to a neighbour who said his house has the same problem, and it’s apparently due to the clay soil — movement happens between winter and summer. He also mentioned that there are large trees nearby, and the council had previously done some work to address the root issues.

My questions are:

• Is it worth taking the risk if the price and location are excellent?

• Are these kinds of issues reasonably fixable?

• Would this affect insurance, resale value, or mortgage approval?

Would love to hear from anyone who’s dealt with something similar or has advice.

Thanks in advance!

The outside is rendered, so there is scope for the external cracks to be superficial movement in the render.

But the inside cracks leave no room for doubt it is a property which is suffering considerable movement and will need a great deal of work done to overcome whatever is wrong.

If you were experienced cash buyers then it might be worth getting advice from a structural engineer about whether the likely cost of repairs + purchase price would leave you with at least breakeven compared to a similar property without movement issues.... but I can't see any mortgage company being willing to lend on that property before it has significant structural repair done (+time to confirm the issues really have been resolved).

poseidon1

Lets_fly said:

Hi all,

We’re first-time buyers and recently viewed a property that we really liked, especially because it’s in a premium location and priced quite low for the area.

However, the property has a subsidence issue, with visible cracks on both the inside and outside walls (photos attached). I spoke to a neighbour who said his house has the same problem, and it’s apparently due to the clay soil — movement happens between winter and summer. He also mentioned that there are large trees nearby, and the council had previously done some work to address the root issues.

My questions are:

• Is it worth taking the risk if the price and location are excellent?

• Are these kinds of issues reasonably fixable?

• Would this affect insurance, resale value, or mortgage approval?

Would love to hear from anyone who’s dealt with something similar or has advice.

Thanks in advance!

Looks like a jig saw puzzle outside and internally, which is slowly fragmenting into its component parts.

Frankly I would only want to pay the sole value of the land, on the basis of demolishing the sorry mess in favour of rebuilding on reinforced foundations.

HillStreetBlues

I would leave the crazy paving for the garden.

lincroft1710

Just forget it.


In the least damaging cases of subsidence, underpinning will be needed, which will be very disruptive and obviously costly. Worst case scenario is complete demolition of the property (seen it happen several times)

Tabieth

I wouldn’t touch it. 

Grumpy_chap

Lets_fly said:

My questions are:

• Is it worth taking the risk if the price and location are excellent?

• Are these kinds of issues reasonably fixable?

• Would this affect insurance, resale value, or mortgage approval?

Would love to hear from anyone who’s dealt with something similar or has advice.

If this subsidence could be resolved easily, why haven't the vendors resolved it prior to sale?

I suspect you would be unable to obtain buildings insurance, certainly you won't obtain insurance to cover the subsidence as a pre-existing issue.  You will need to pay for the subsidence to be resolved yourselves, and put up with all the hassle.

Any future buyer will review the history of subsidence and ask the same questions you are asking and will take into account in their assessment of the value.

The mortgage will be subject to the value of the property, which must be impacted by the subsidence that has occurred.  In fact, with all this subsidence, why do you even need a mortgage?  Surely, the house is available to purchase at a token value that you can pay cash?

Lets_fly

Grumpy_chap said:

Lets_fly said:

My questions are:

• Is it worth taking the risk if the price and location are excellent?

• Are these kinds of issues reasonably fixable?

• Would this affect insurance, resale value, or mortgage approval?

Would love to hear from anyone who’s dealt with something similar or has advice.

If this subsidence could be resolved easily, why haven't the vendors resolved it prior to sale?

I suspect you would be unable to obtain buildings insurance, certainly you won't obtain insurance to cover the subsidence as a pre-existing issue.  You will need to pay for the subsidence to be resolved yourselves, and put up with all the hassle.

Any future buyer will review the history of subsidence and ask the same questions you are asking and will take into account in their assessment of the value.

The mortgage will be subject to the value of the property, which must be impacted by the subsidence that has occurred.  In fact, with all this subsidence, why do you even need a mortgage?  Surely, the house is available to purchase at a token value that you can pay cash?

They have reduced the asking price by just  5% . Its  on market for 575K. Recent sales in that road are around 600k. Actually the seller could not pay mortgage so now the bank or some financial company want to sell it. 

Grumpy_chap

Lets_fly said:

They have reduced the asking price by just  5% . Its  on market for 575K. Recent sales in that road are around 600k. Actually the seller could not pay mortgage so now the bank or some financial company want to sell it. 

Will it cost more than £25k to remedy the subsidence and put the house back to required standard internally?
If so, that is your answer.

Remember, you can fix this subsidence so the property is perfect but those online listing photos showing the issues will be there forever and the next buyer might find them and ask questions.

Albermarle

Lets_fly said:

Grumpy_chap said:

Lets_fly said:

My questions are:

• Is it worth taking the risk if the price and location are excellent?

• Are these kinds of issues reasonably fixable?

• Would this affect insurance, resale value, or mortgage approval?

Would love to hear from anyone who’s dealt with something similar or has advice.

If this subsidence could be resolved easily, why haven't the vendors resolved it prior to sale?

I suspect you would be unable to obtain buildings insurance, certainly you won't obtain insurance to cover the subsidence as a pre-existing issue.  You will need to pay for the subsidence to be resolved yourselves, and put up with all the hassle.

Any future buyer will review the history of subsidence and ask the same questions you are asking and will take into account in their assessment of the value.

The mortgage will be subject to the value of the property, which must be impacted by the subsidence that has occurred.  In fact, with all this subsidence, why do you even need a mortgage?  Surely, the house is available to purchase at a token value that you can pay cash?

They have reduced the asking price by just  5% . Its  on market for 575K. Recent sales in that road are around 600k. Actually the seller could not pay mortgage so now the bank or some financial company want to sell it. 

because it’s in a premium location and priced quite low for the area.

When you said that and looking at the state of the place, I was assuming it was more like £100K less than similar properties.