Has anyone bought a house with a current subsidence problem that needs fixing?

[Montblanc]

The subsidence itself doesn't scare me, we are in an area where it is quite common but I just can't see how it will work putting the buildings insurance claim in to get it fixed. Do the current vendors have to put the claim in and get the work done or can we take over their policy and put the claim in? If it can't be resolved quickly our chain will probably collapse.

Am obviously seeking legal advice but wondered if anyone had first hand experience. I'm also worried our lender will put out now. It has taken us 2 months to get the mortgage approved and now this :(

I presume an insurance company is not going to pay out for a problem which existed prior to the policy being taken out. If you take out a buildings insurance policy when you move in, they will not pay out if you then try to claim. It would be like taking out insurance on a building which is currently on fire, and then submitting a claim for the fire damage.

I would proceed with extreme caution here, the last thing you want to do is be hit with a big bill which you have made no provision for. Why won;t the sellers get the work done themselves? If you have an estimate for the cost of the work, modify your offer to reflect this.

I would imagine that in this scenario the vendors would need to claim on their insurance and get the problem fixed before the house can be sold as it is unlikely that a mortgage company would lend money on a house that has evidence of active subsidence that needs remedial work. I would be scared of subsidence! Worst case scenario your house could fall down around you, it can be horrendously expensive to repair and frequently requires that the occupants move out whilst work is carried out. I think the first thing to do is to speak to your lender and see what they say.

Got to be fixed by current insurers and you should get the current owners to make the claim. There's a minimum £1000 excess too, by the way, the existing insurers are obligated to allow YOU to continue insurance with them as its hard to get insurance when there has been subsidence.

Thanks all, I think you're right QOD we need to get them to claim and fix it but this is going to take months and our chain will probably collapse.

Urgh I'm so upset, has taken us 7 months to get to this point and it feels like we are about to go back to square one.

I''d scarper and look for something else and consider yourselves lucky to have found out before you bought.

Is it due to mining? Or is it due to another cause?
Our house has suffered major subsidence when the local colliery was mining underneath.
The Coal Board rebuilt the entire gable end of our house ( before we lived here) and there was a huge crack between ours and next doors dining room - you could see through it apparently!
I am worried about selling our house in the future and it is more expensive to get insurance cover. So maybe not buying is the best option.

No we live in a clay area, it is a very common problem. That is reassuring MrsMagnolia to know you can get written approval to undertake the works from the insurer and not necessarily have to get the work done before moving in.

Another one to warn you to proceed with extreme caution.... Parents found out their house had huge subsidence problem (which the vendors had covered up in this case and the surveyors hadn't spotted). It cost a huge amount to be fixed approx £200k only some of which they recouped (and ridiculous seeing the value of the house) but the worst thing was the hassle and mess needed to allow the works to go ahead. They had to move out and it took ages to fix as they discovered further problems the more they exposed. They have since it's been fixed had continuing problems with renewing the mortgage and gaining insurance (both of which are at worse rates than if the subsidence hadn't been there). When parents split up they found it impossible to sell due to the now completely fixed subsidence (one parent had to buy other out) which as a vendor they had to declare. So IME I would run away from any house with this as an issue.

I really feel for you, but I think I would walk away. Trying to get insurance for a house that has subsidence is so difficult even if it just minor work needed. Remember you need insurance at the exchange of contracts stage as you would be legally obliged to buy the property. If you ever come to sell you will have the same issues.