Flat sale in jeopardy - any help?

[knitcorner]

We live in a leasehold flat in London (Victorian building split into 5) that has been on the market since DS was born over a year ago.

We are desperate to move and have finally agreed on an offer from first time buyers. However the building has got one or two cracks in the external walls that don't affect our property at all, and are being monitored by the managing agents (I understand some equipment has been embedded in the foundations for a year, they've also removed a large tree from the front of the property).

Our estate agents are suggesting that this might mean our sale falls through, but worse, that we'll never be able to sell!

Does anyone have any knowledge on how subsidence might affect a mortgage application in this day and age?

It's mainly to do with insurance - some insurance companies wont touch a building with a history of subsidence which means you cant get a mortgage. Now given you have a mortgage, you must have buildings insurance (or the freeholder will and recharges you, that is what happens with our flat) so the subsidence shouldn't be a problem from the mortgage company;s point of view.

The estate agents might be trying to warm you up to drop the price.

How much do you know about these cracks? When did they appear? It's worth seeing if you can get hold of the surveyors report from the management company so you know what you're dealing with (they must have one if action is being taken)

Our flat (well the building) was underpinned due to subsidence in the 1980s but no problems with buying/selling as it's insured and was a historic problem with no (major) movement since.

Thanks Iggly, we did get the surveyors report from the management company today and it all seems very tame - they suspect it's tree roots causing movement, the trees have already been removed so it's just a case of monitoring whether there's any other problems. (have also lived in a flat that was underpinned about 12 years ago - i guess that's where my concern stems from)

We met the buyers yesterday and they seemed unaware that there was any problem with their survey so fingers crossed it's a mountain out of a molehill!