It depends on what question is asked. I'm pretty sure I've been asked whether our house has ever been underpinned, either by an insurer or a buyer's solicitor. No context, i.e. not specifically in relation to subsidence. Of course you could lie, but it's not the best place to start from.Eh? There's a massive difference between structural work necessary for new construction and subsidence. You won't pay extra for this.
If you need to squirt concrete under a building then it's clearly deficient in some way. This is why they're asking.
Given that this uninsulated wall is around the living room then I'd suggest that replacing it would kill two birds with one stone - allowing you to build above in a non-botchy way AND also vastly improving the living room's insulation and therefore heating costs. Plus I suspect the costs won't actually be very different, as you'll pay lots of labour, design and special materials including steel joists to prop it up. Plus you'd end up with weird boxed in lumps of the corners of the rooms downstairs.
If you have cooking in the same area as a solid wall then it will probably end up with condensation and black mould, especially behind furniture where there's still air.

