Have we offered too much for house with subsidence

[toohottohandlebar]

Having a bit of a panic so looking for some reassurance/advice.

We saw a house we loved and secured it by offering £15 over asking price. However, the conveyancing process has revealed that the house has had subsidence in the past and lots of work carried out on it- not clear if the house was underpinned but we've received documents that state the entire ground floor had work done on it and decorated afterwards through an insurance claim. I've looked up subsidence and read that houses with subsidence issues usually cost 20% compared to those houses without and now I'm worried that we're overpaying for a house that we'll potentially struggle to sell on too. We're yet to have a structural survey but what should we do? The vendor has been a nightmare but has shared a certificate of structural adequacy but I'm not going to lie, this has made me worry a lot. We've been told the subsidence was caused because of a tree outside the house which has now been cut down but I'm worried we won't be able to carry out an extension because of the property's dodgy foundations.

Cut your losses and run now.

The house next door to us would not sell for this reason. It was because of trees at the rear which were cut down but the damage was done. Eventually a property company bought it very cheaply and now rent it out.

I would avoid. Why buy yourself a load of worry?

If it’s going to give you anxiety, don’t do it!

The certificate of structural adequacy states "no further movement was detected" over the period of a year after the tree was removed. But subsidence return? I love the house but have twin preschoolers so don't think I can take on a 'project' (ever). Should we renegotiate price or just move on? Everything is good to go bar structural survey which will take place hopefully this week.

Get the survey and ask questions. If it is all OK then it's up to you, but remember it might be a problem when you ever decide to sell.
House next door is fine. One of my neighbours actually viewed it before he bought one a few doors down. He wanted to extend at the back and found out he was not able to so he declined even though it was cheap.

I would try and renegotiate downwards. If houses with subsidence are worth 20% less than aim for that although you may have to go up a bit higher
I discovered a major problem with the house I have just bought and renegotiated the price successfully

This smells of trouble and I suspect means that an extension is not a good idea. It certainly devalues the house.
either reduce your offer by a huge chunk if you don’ t mind not doing the extension or run for the hills

Walk away. There'll be other houses.

So

• The vendor is a nightmare
• History of subsidence

I'd pull out, to be honest. What a pain for you, so disappointing!

I would cut your losses too. This will never go away as if you ever want to sell the same history will reappear again. It's maybe why the vendors are being a pain to work with.

Don't do it!

Get the structural survey done and advice on what the "received documents that state the entire ground floor had work done on it" if you are unsure.

You may have a full suite of information on the work carried out, by whom and a warranty from the structural engineer and suitable contractor or it could be a bill of quants for the work to be carried out by Bodgit & Scarper. Until you know what has happened you may as well ask the Mumsnet collective what next weeks winning lottery numbers are.

@toohottohandlebar
A different spin here...
I was told that houses that have had subsidence and then treated, have less likelihood of repeat subsidence than those that haven't been treated as apparently "fine".
So in some respects, it maybe a safer bet especially if its at a reduced price.

Our neighbours have subsidence, its caused their drains underneath the house to collapse and they had sewage seeping through at one point. Its been an absolute nightmare for them. Personally I'd run a mile after hearing that.

Combination of everything .. I’d cut my losses. however that’s my gut feeling. It might be worth gaining the advice of a surveyor however

Talk to professionals about this

The vender being a nightmare is the bit that I would be worried about. I wouldn’t necessarily run from the subsidence as if it was tree related and all removed then it wouldn’t worry me too much - depending on when it was. If it was a year ago I would be more worried to say 10 years ago. Up to 20% of houses in uk have suffered subsidence and tbh it’s to increase with climate change massively. If it was due to a tree and it’s gone then it was due to the trees/roots drying out the land that made the building subside. They don’t underpin like they used to do it might not of been as it’s not needed to as long a movement has stopped It’s very unlikely to happen again. If you love the house definitely get a structural report done before making a decision. In terms of an extension, a SE would be able to advise but I wouldn’t see why an extension couldn’t happen, just means you might just have to give extra support to the main house.

A previous neighbour's house was built with the wrong foundations and subsided and was underpinned. It subsided again twice in the time we lived there, the last time was apparently due to tree roots.

I know that there are newer methods of treating subsidence now.

I would be very cautious with the house you are buying as the subsidence was so recent, plus I would expect the property to be lower priced.

I would walk away from this one.

The subsidence in itself may not be an issue if properly treated.
The problem is that in buying in a hot market, you are paying an absolute premium for it.
How long term do you expect this property to be? If it's a house you don't envisage moving from for 20plus years it might be okay. But if you are likely to outgrow it, need to move for school catchments etc then I think it's very risky.

While house prices may not plummet, trying to recoup over an asking price on it's own is hard. Combine that with a house with a difficult history and it's really asking for trouble if you need to re sell

Another thing to consider is cost and availability of insurance. Many of the most competitive insurers will not quote for previously underpinned houses so you may find that you have to pay a lot for insurance. Make sure that you find out who the insurer was that paid for the remedial work as they are usually your best bet (you would do well to get the claims reference too). You could be paying double or treble the normal cost for many years

The thing with subsidence which really confuses me is that underpinning terrifies people however the house next door with no work is deemed a safer bet. Particularly in parts of London where houses are built on clay subsidence can be quite common. However nightmare sellers would put me off.

There is a big difference between a house that has been underpinned (which should be rock solid and never move again) and one which has just been stabilised through repairing whatever the cause of the subsidence was (ie cutting down the tree / mending the drain) and then redecorating.

Having owned a house suffering from mild subsidence and had all the hassle of a long claim and continuing worry, personally I wouldn't buy either.

That said, a lot more houses are going to suffer in the future, given the extremes of weather we are now experiencing.

.... And should add that insurance companies do all they can to avoid underpinning as it's so expensive and disruptive.

Thank you everyone- lots to think about. We paid way over asking because the house is in a desirable area (close to a station, park, outstanding schools) and it isn't a million miles away from where we currently live. I felt like we'd won the jackpot when our offer was accepted. I sent our solicitor an email yesterday and they've just replied stating that NO UNDERPINNING of the property had taken place- just cracks covered and full redecoration of the downstairs. The vendors insurance company has also said they require an excess of £7500 for any further subsidence claims. We've been advised to call around for building insurance and see if another company would insure the property with a much reduced excess since an excess amount over £1000 will need to be declared to our lender (who may then withdraw their offer). So, all in all, the entire situation seems untenable (literally)!

Since offering on this house, others in the area have become available but this house is on the prettiest street and much closer to where we want to be.

We planned to stay here for 8-10 years and then move. It's an period terrace so not the biggest of places and the 4 of us will find it a squash and a squeeze once the twins are older.