Reduction in property value - mining report

buckeroony

I would like advice re selling a property which has 2 mine entrances 11m and 7m in the road outside the next doors’s house. Buyer has pulled out as they can’t get a 60% mortgage of the property value of 160k. I have been told I should reduce by at least 25% for 1 mine entrance and more for 2nd and readvertise for cash buyers/investors

.I contacted the coal board who tells me this is ‘incorrect information’ but my estate agent tells me this is and has been current practice for many years.There has been a mortgage on the property up until last year and the house was bought at market value in the 90s.

This is a substantial reduction for a property that has never had any structural issues and had a homebuyers report recently with no mention of damage or subsidence.

Please adviseThank you 

poseidon1

https://forums.moneysavingexpert.com/discussion/6653439/reduction-in-property-value-mining-report

The following article from a trade magazine, indicates proximity to a mine shaft does have a detrimental effect on property value, regardless of any actual historic or concurrent signs of subsidence -

https://www.mortgagefinancegazette.com/features/beware-dangers-past-mining-activity-06-08-2018/#:~:text=The%20real%20problem%20associated%20with,but%20not%20often%20exceeding%2020%25.

I don't know about any one else on this forum, but I would not consider acquiring a property in a mining area, let alone one at such close proximity to capped shafts at any price.

born_again

Ability to get a mortgage may depend on lender. Some maybe more willing to offer one, while others will simply say NO.

ReadySteadyPop

https://forums.moneysavingexpert.com/discussion/6653439/reduction-in-property-value-mining-report

Mortgage rates are rising, banks are being cautious, buyers might be put off by the proximity of mine shafts (some might not though) and a sale to a landlord might be your main option (tenants won`t care so much as the landlord is taking the financial risk) selling to a landlord in this market will most likely involve a price cut though.

user1977

Any mine entry interpretation report(s)? Did you get a coal report when you bought (or at any previous remortgages)? I wouldn't expect the info to have changed since the 90s. Any clues from nearby properties whether it's affected their prices? What age is the property?

daveyjp

https://forums.moneysavingexpert.com/discussion/comment/81866930#Comment_81866930

There are lots of areas with a history of mining and quarrying that is unknown as the areas were disturbed well before records were made.

I've seen mine adits just 1-2m under the surface which have had buildings on them for years. Until the buildimgs were demolished nobody was aware.

buckeroony

The article in the mortgage gazette is interesting.

I’m selling my deceased brother’s house which he had valued before he died. He had no reason to believe the value would be lower as he’d not had issues with the purchase himself. I know he would have written a different will if he’d have thought his home was to be sold for much less.

Under these circumstances I’m surprised there is no compensation for the shortfall

user1977

https://forums.moneysavingexpert.com/discussion/comment/81867497#Comment_81867497

Compensation from whom?

dinosaur66

a villlage near irvine that is all built on old mines that closed in 1890s

houses are from 100 years old to brand new builds this year just completed

houses are similar price to neighbouring towns

the new estates are fully covered by ayrshire council with regard any movement subsidence so peace of mind

i got my mate to ask around and he said no issues on any of the older propertys

similar home buyers report as you got all 1s and and coal mine report says all safe

mortgage wise i know one of the new estates was part buy part rent so all of them would have had mortgages granted

they have just finished some 3 bed detached new builds in 2026 and they are priced high

i keep an eye on prices and new property coming on rightmove and they only stay on for maximum a month before going to offers so it seems mortgage is no problem and it does not put buyers off

i should have said at the beginning they were open cast mines that stretched from stonehouse and along the

A 71 road

dinosaur66

thinking of it stonehouse was a major mining area and is an average size town for scotland so maybe do a bit of research there to see if it has or is affecting house prices/ i have driven through it many many times and see loads of standard brand new to 20 year old housing stock as well as the older stock /

jennifernil

Our daughter has a property in the west of Glasgow, built in 1924, there are a lot of mine shafts in the area. She has one at the entrance to her driveway, so about 12 metres from the house itself. No problems with the house at all. The house was extended back in 1979, split into 2 flats, and further extended in 1993 and 2012. She has the lower flat.

When she bought it some 7+ years back, the then owner, who had bought it in 1992, did not know about this mine shaft, but it showed up on the coal report. Everything was put on hold for a couple of weeks while her solicitor consulted with the lender, Halifax, as to whether they might down-value it, but Halifax were happy with the home report value, so she went ahead.

The presence of the old coal workings does not seem to have had any effect on local house prices, the one next door, a detached villa, sold recently for over £1.1 million.