Buying a house with structural problem

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Hi everyone,

We're just about to exchange on a 1900s semi-detached 4-bed house in Ealing (west London).
Our building survey came back with a few concerns about cracking to the front of the property, so we paid for a structural survey. This came back with concerns about a supporting beam in the loft having moved an inch or so and further cracks found along the same vertical line (inside and out).

We instructed a CCTV drain scan which revealed that the main drain run was in poor condition and seeping into the soil at the joints. There's also a mature cherry tree in the front garden, very close to the house.

Everything points to most likely a combination of the tree and drains as contributory factors to subsidence/movement on the left hand side of the property. Cracking has reoccured since the house was redecorated inside and out in 2011, so is currently progressive.

Obviously there's a fair bit of work to do: digging out and replacing 12m of drains, cropping the tree, repairing the cracks, fitting a steel beam in the loft to support the structure etc. - probably amounting to £20k+

That leaves us with a very difficult decision to make - it's the perfect house on the right road in a good location. Houses here rarely come up for sale (last one was over 6 years ago), so unfortunately it's not as easy as just choosing another.

Now the dreaded words 'progressive' and 'movement' have been mentioned by the surveyor and engineer, I'm guessing it'll be an insurance nightmare - and whether the mortgage lender will still be willing to offer given the reports (though their valuation survey raised no concerns whatsoever - even though the cracking is unmissable on the front of the house). There's also the possibility of finding it harder to sell later on down the line.

Everything tells us to walk on, but we really want the house and are willing to spend time fixing these issues as we plan to live there for 10-15 years +. The house has stood for 115 years, it's not going to fall down any time soon, but not knowing the true extent of what needs to be done (i.e. if underpinning will be required at a later date) it certainly is a large risk.

Wondered if any of you had any experience in a similar situation or advice? Is it worth taking on even with a large price reduction? With the current demand levels in London, someone will undoubtably buy this house - it would be frustrating for it not to be us!

Thanks in advance
R
 
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Two choices Heart or Head!

Remember even if you get the reductions you need, it means living in a building site for who knows how long, a developer however can gut it and carry out the work in a few weeks while it is empty.

Good luck either way ;)
 
You are asking people to make a stab in the dark - only you know the facts, so only you can decide.
 
Thanks @tony1851, not looking for a yes or no answer - more if anyone might share similar experiences and outcomes.
 
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Most things are fixable given time and money - you can hold a certain amount of control over that. The location and frequency of properties that come to the market in that location you have no control over.

You need to talk to your lenders and insurance companies and then decide if you have the funds or are willing to take the risk completely on your own.

Personally, if the property was in the right location for me, but work needed to be done and I had the ability to pay for the property and the work then I'd go for it. If I didn't have the ability to dig myself out of hole then as much as my heart says yes, the head says no.
 
your best bet is to take a building contractor around with you. If it needs fixing - get him to fix it and don't even begin to talk to the insurance companies about it. If you volunteer it has subsidence then that'll knock at least £50k off the value. Just sort it and don't say a word.
 
£20k to fix ongoing subsidence in 100+yr old property? (seems rather low)
 
Joe 90 Posted

"and don't even begin to talk to the insurance companies about it."

This could mean that at a future date if you make a claim under your insurance Contract, and for some reason the insurer finds out that you have not, what is termed within the terms and conditions of your Insurance policy " Acted in Utmost Good Faith" and do not reveal everything to your intended insurer, the insurer can Void the Policy and give you back any premium's paid

What this means is that if your property suffers a massive gas explosion and is a "total Loss" the insurer will simply walk away, you will be left with absolutely nothing.

likewise if the property is damaged badly by a flood, the insurer can request a copy of the original Pre-Purchase Survey?

Indeed many insurers will ask for the pre-Purchase Survey, simply because in your Post Code there might be a high preponderance of Subsidence?

To elaborate on this last point [Sorry everyone but I work in the insurance industry] the firm called "Experian" [those credit check people that advertise] have several differing sides to the business they operate in, one area is that EVERY Insurance claim intimated is LOGGED with Experian. So over a long number of years, Experian can tell the insurer several things, is this or that Post Code
1/ Liable to flood?
2/ The area is notorious for break-In burglaries.
3/. Has a high rate of Vandalism?
4/. is in an area known to be subjected to Subsidence
5/. The area has a low / moderate / high /very High car crime profile.
Etc. Etc. Etc.

All of the above information is built into all insurers Data bases so that the "Appropriate" level of Premium can be charged.

For Example, I was "button holed" when in my local bank branch and the lady offered me lower insurance premiums OK I joined in BUT when She fed my postcode into the machine I was Refused Cover, Why/ Because my property MAY flood, I live on the Sea Front?

What I am trying to say is think very, very carefully about what you are about to tell your insurer? get it wrong and bluntly you will have NO COVER, you will be on your own

Ken
 
They can't 'demand' a survey, the potential purchaser paid for it and it is his to do with whatever he likes (dump it). You just say there wasn't one. That's why you take a builder with you. BTW Ken, how many massive gas explosions were there on your street last year? In your city? Yeah. None.
 
Do you have the money to fix the problems (and when assessing this, double any given quote). If you move in, and the issues cause the property to then be unsellable at anything but a loss until fixed, are you OK with this?

You indicate you plan to live there for at least a decade, so yes?

And don't feck about with insurance, you either have the money to cover it yourself or get insurance and stick to the rules.

Having been bitten myself, I would only stress that you should think really carefully about your finances, and if you can afford to deal with untoward consequences, walk away if you can't.

Also ignore anything Joe-90 says, jebus.
 
You say 'engineer' so I hope your structural survey was carried out by a MIStructE Structural Engineer not a general property surveyor.

£20k is less than the cost of a nice fitted kitchen and if the house is £400k, (quick guesstimate from a property website for semis in Ealing) only 5% of its value.

A lot of buyers will be put off by the work required and the financial risk.

If you can cope with the disruption and have the financial resilience to manage the risk you could be onto a very good thing with this house.

Sounds like a week's work with a digger and lots of concrete.
:D
 
You fix it - then get insurance. That's the way property developers work. Don't listen to that idiot Searle, he's a dopey lefty. It's your choice. You make your own mind up.
 
£20k is less than the cost of a nice fitted kitchen and if the house is £400k, (quick guesstimate from a property website for semis in Ealing)...
And the rest...wouldn't surprise me if it was double that!

The main thing is not to pay too much for the house in the first place.

I tried to buy a £40k house that needed £20k of work doing it it. It would have been worth £60k once the work was done. The winning offer was £60k. How I laughed.
 
If you buy it then insurance cover for duration of the repair work is something you must consider in case movement / collapse of your house affects the attached semi.

In a nearby village the end cottage in a terrace suffered subsidence and needed under-pinning. This was not done with due diligence and the cottage continued to move. The movement affected the party wall with the adjacent cottage to the extent the roof was about to fall in. The costs are close on £ 700,000 and rising.

The insurance company will cover the costs and then try to recover from the company that carried out the failed under pining.
 

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