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Subsidence in a property we are looking to buy

Hi We are looking to purchase a house, which we have since found out it had subsidence that was picked up in the valuation and was underpinned in 1988. The owners seem to be struggling to find the paperwork which we need for the mortgage and strangely appear to have bought the house for cash without valuation or any details of the subsidence. Due to the real difficulty of getting hold of the paperwork, this raises some concerns and the difficulty of insuring and reselling. We don't know what to do. Should we buy if they can provide the paperwork? Will we struggle to resell? What would happen with insurance? Not sure if j mentioned but the valuation says that there doesn't appear to be any signs of further movement. However, the cause of the movement is from a tree, which is situated on a piece of land which does not come with the property. So it is reliant on a third party to maintain the tree. Will this cause issues for us too in the future? Any help much appreciated. Thanks

Asked on Jul 12 2011, General in Northampton | Report content

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  • Personally I wouldn't entertain purchasing this property without the necessary paperwork, and especially the paperwork signing the work off. It is unlikely you will be able to purchase this property with a mortgage, without the required paperwork, and you will also have difficulty obtaining insurance. If you do obtain insurance, the excess for future claims for subsidence will be loaded (i.e instead od say the usual £1000 you may be asked to pay £5000 towards the cost of further underpinning) In essence you are buying a PUP (previously underpinned property) Unless you can get the necessary paperwork, steer well clear!!

    Answered on Jul 15 2011, Report content
  • Thank you for the reply. So if they were to provide the relevant paperwork that the mortgage company requires would you continue to purchase? Or walk away due to the hassle of having subsidence and underpinning associated with the property in the future?

    Answered on Jul 15 2011, Report content
  • Hi, If they provide the paperwork, then you have a decision to make, but do speak to your surveyor, your insurance company, the owners insurance company (to see if they have any knowledge of the underpinning),speak to your mortgage broker or your lender (if you haven't already) and your solicitor. Take as much advise as possible, so that you can make an informed decision. Are you paying a fair price ? All said and done, no certificates or reports from the surveyor who monitored the works then no deal. Consider this, would you buy a second hand car, which has a new engine without invoices etc.. from a reputable garage. Buying and selling a property that has been underpinned properly, and with certificates and reports to proove it, is not necessarily a problem, 1000's of houses across the Country have had to be underpinned for whatever reason, and they still sell.

    Answered on Jul 16 2011, Report content

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