should I buy a house with subsidence history

[Anonymous]

Just reviewed a house, which are in the expected location. The house are generally good although I have not done anything on it. Unfortunately I just found out it had slight subsidence history wich had been fixed(underpinned) from from the report 3 years ago. I am very worried about the problem to be honest (could it happen again? should have the problem to sell the house in the future?), while I still hesitate to lose the chance to buy the property. Should I go ahead or just wait for antoher opportunity? Any advice would be appreciated.

 

[Anonymous]

We bought a 300 year old house which had been fixed.

No regrets.

A minor niggle with house insurance as some companies won't touch it with a barge pole. Bloody stupid when it has been fixed. I found this out when trying to get a better quote a couple of weeks ago.

Norwich Union and the current Mortgage provider have no problems insuring it, but costs more than some of the cheaper providers. Just have to accept it as part of the running costs.

Selling might be an issue, but as we have bought to keep we are not too worried and everything sells at the right price.

So bear in mind the price reflects the history and as long as it is not overvalued then that should not be a problem.

You might have smaller pool of buyers in future, but you will still find one especially if it has character?

The real question is do you love it. If so then go for it but note you might have to pay a tad more year on year for insurance.

I hope that helps?

MJ

 

[Anonymous]

MJ has made several comments that I agree with.

Except that I don't think I would buy the house - for three reasons.

1. The subsidence that occurred has been sorted out, but it could indicate the possibility of further such problems in the future. I must add that, if the whole house was underpinned under the guidance of a structural engineer, then maybe I'm being a bit alarmist. But if it was only the part of the house where the subsidence occurred, then I think I would find it difficult not to have worries.

2. You will have some difficulty with insurance, and even though you will almost certainly find insurers to cover you, you will probably pay a higher premium and carry a hefty subsidence excess.

3. You will undoubtedly reduce your potential pool of buyers when you come to sell, and may find that the value of the house is reduced by the subsidence history.

I'm sure many people would regard me a sover-cautious in this, but I can only tell you my own feelings in the matter.

 

[Anonymous]

David,
Whereas I agree with your first two points, when we come to point 3 and the value of the house will be less because of the subsidene, surely the cost of the house now is reduced because of the same, so therefore if we get back to a quickly rising market it maybe won't rise as fast as all the others, but it will still rise if all other house prices rise.

As for whether to buy it.

If you think it is the house for you - yes
If you want to buy to live in - yes
If you think you are going to make a fast buck - no
But make sure you get lots of expert advice on what has been done, what is likely to happen in the future, it's worth spending a few pounds now to save many in the future and then put your head on instead of your heart.

Graham

 

[Anonymous]

Worth looking closer if the house is what you want in other respects.

What caused the subsidence? If it has stood for xhundred years and only subsided 3 years ago due to a drainage problem (for example) then it is likely to be a much better bet than if the subsidence is due to a mining collapse due to old props starting to give way....

G.

 

[Anonymous]

The cause of the subsidence is of "water table in the back garden". I have decided not to touch the property btw. £240.000 is not small money for me and I would not take the risk to live there without a peaceful heart. However all the property in that area are at risk of subsidence, should I avoid the area completely? ....

 

[Anonymous]

Well if the area is very flat, then a rise in the water table seems likely to effect a lot of properties. If it isnt that flat then maybe worth investigating further. Maybe some simple drainage would permenantly fix it and get you a bargain...

Is this a new water table? Freshly assembled from Ikea?

 

[Anonymous]

Let someone else worry about past subsidence problems.

Look for another property that may need a bit of painting, bathroom decorating or just a loft ladder or something.

 

[Anonymous]

Hi Graham

"...maybe won't rise as fast as all the others, but it will still rise if all other house prices rise."

I understand your reasoning, but the point you make above would still put me off the house.
I have never (and would never) buy a house to make a quick buck. But as people progress through life, they generally want to ensure that their wealth increases as much as it can. And for the great majority of us, our house represents the biggest share of our wealth. So if you buy a house which is unlikely to increase in value as much as the rest of the market, you are actually making a concious decision to sacrifice a portion of your future wealth.
Some people might be prepared to do this. I wouldn't.

 

[Anonymous]

Nah - it can't possibly be. The assembly key would have been missing.

 

[Anonymous]

But no uPVC loft ladders, OK?

 

[Anonymous]

I agree with you, but you have to put this alongside the joy of living somewhere....... As some people move jobs to earn less and get a better life, it may be worth living in the house for the joy it gives us.

Just my thoughts.

Graham

 

[Anonymous]

what you have said Graham is a valid and very important point, nevetherless there is that "risk" element which shoul be given a VERY serious thought.
At best the reasons against ( as opinions here) should be enough to have that "edgy" feeling to put anybody off the purchase.
At worst this could eventually end up very " sour ".
My brother purchased a property under very similar circumstances five years ago, he is at present in rented accomodation whilst his property is having five metre piles inserted in the foundations and the whole house "rafted".

Luckly at the end of a long squable the insurance picked up the bill.
It created a lot of heartache for his family all for the sake of a quick profit.
I sound very negative about this, solely because of close experience.
At the end I am sure individuals will be guided by their own " feel good" factor.

 

[Anonymous]

Don't knock it...!!

Hand carved uPVC may be in order ?.

May even convince Evelyn...!!

 

[Anonymous]

Underpinnned subsided properties are quite secure as the problem has been solved.

The more years away from the subsidence event, the less it affects house sale value. So if you're looking at a long term effect, these properties are an excellant choice.

The only risk is if the cause has not been diagnosed correctly, eg due to mining activity, and subsidence recurs. In this case house value will become lead-balloon-like. And there is a significantly above average risk of this, hence you'll pay steep insurance premiums. Do check out the insurance situation in detail first, some houses become uninsurable against future subsidence.

NT