Just found out house we're buying is underpinned, vendor says they didn't know!?

[mspotatochip]

Its a long boring saga but basically we are buying a Victorian terraced house on a slope. Surveyor noted "old movement". When we knocked on neighbours doors they all said "oh we're underpinned we have the papers and continued previous insurance we don't mind lovely street etc".

Not sure about taking on an underpinned house plus there's the additional problem that if the vendors really didn't know they won't have the paperwork (1987) and there's no point continuing their insurance as its probably void with this new knowledge anyway.

Sale of our property is proceeding so we need to make some decisions quickly. Anyone been in a similar situation?

I have no experince but surely being underpinned is a good thing? It's better to buy knowing it's been underpinned (and therefore safer) than finding out it's falling down after you've bought it.

It really depends on how much you like the house. The neighbours all seem happy to live there.

You are making a guess about paperwork re insurance.
Underpinned is fine- a possible subsidence problem has been identified and resolved. Neighbours can give you name of insurance co and find out if your house has valid an renewable buildings insurance.
Guess its an old house. Its normal.
Don't worry. Carry on with sale/ purchase.

I'd ring round for some specialist insurance quotes - underpinned homes aren't impossible to insure - and then make a decision. Use a broker rather than ringing one-size-fits-all merchants such as Direct Line etc. I'd second the fact that if it has been underpinned for the past 24 years, it sounds as if the problem is resolved.

I know we are making a worst case scenario assumption re paperwork and insurance but this is due to vendor swearing to us that they haven't a clue what we're getting so excited about.

We are being told that a) underpinning is not always a permanent solution b) specialist insurers and mortgage companies if we need to remortgage etc will want all the paperwork and any warrantie etc c) these houses are extremely difficult to resell.

The house is at the top of our budget and needs replastered and redecorated top to bottom.

You obviously have doubts. If you desparately wanted the house you'd be posting here saying 'House underpinned...tell me it will be ok'. You're not- you're looking for ways to convince us (yourself?) not to buy it.

If you want to be sure, ask the vendor to pay for a full structural survey and ask the neighbours for details of the company who did the original work, so you can check your house was included (it might not have been!). I believe there are one-off insurances you can buy which might give you some extra cover 'just in case' (we have one just in case someone from the planning dept ever comes round and discovers our attic conversion was done without conforming to building regs!).

If you don't want to go to those lengths, walk away. There are other houses!

amistill you are right, I am seriously concerned about this mostly because we are already out of our comfort zone with the level of work needed but we felt that was reflected in the price and its a good house in an area we love. I do feel we have been deceived / led up the garden path as the neighbouring house is for sale with the same agents and they have been perfectly upfront about the underpinning.

I found the building control record from 1987, three out of the four houses in the terrace including this one were underpinned at the same time, so it seems as though original reports are probably around (unless next door has been done again since!)

As far as I can see specialist insurers want details I don't have at the moment, why original works were done, structural engineers report and certificate on the work, the cost of the original works, whether they were done by an insurance company etc.

Is the one next door within your price range? Have you been to look round it? Having said, which, I'd be wary of a street where 2 houses next door were for sale, tbh. I'd wonder what they knew that I didn't...[unsure]

[unsure] should have been

They are three bed terraces, next door seems to have a relatively small third child, I suspect the house is just too small for them. Nextdoor is under offer but hasn't got to survey stage. Its been replastered etc and from details only appears not to need any work done. It was on the market for 15k more than the one we're looking at. The end terrace sold for 10 k more at xmas. They knew about underpinning.

dp and I are very risk averse. We are trying not to run away at first hurdle.

I think the key thing is whether or not you can get insurance - it will be a condition of the mortgage offer anyway. If you can then I would proceed, it doesn't sound as though they've deceived you for a dodgy reason eg because the work wasn't done properly, probably just that they were worried it would scare you off.

Our house is underpinned. It doesn't worry us - most insurance policies have a £5K excess for movement whether you've been underpinned or not. Check you can get it insured and how much the insurance is per month. Granted ours is a little more but we got an extra £10K off the purchase price to reflect this.

Yes, but the fact there has been no problem selling neighbouring houses should be reassuring, no? Your vendors may genuinely not know. It was only when doing rebuilding work to our house that we found out an external wall had been knocked down and rebuilt - survey never picked it up and it was, apparently really obvious from the new brickwork

Just for anyone in similar situation in future. We didn't buy it. Insurance was going to be three times normal and mortgage company were jumpy so we pulled out. After six months in rented we bought a new build ;)

It did sell at asking price soon after though