Buying, selling and letting a property with subsidence
Is there any reassurance for fretting sellers, or potentially any reward for buying a property affected by subsidence?
For owners of houses with a history of subsidence, the anxiety over what happens when you come to sell it - and the process of doing so - can be overwhelming.
For prospective buyers looking to rent the property out, doing your homework will help you decide whether it is worth the punt.
And for more information you can download our infographic on buying, selling and letting a property with a history of subsidence.
For prospective buyers, subsidence properties can sometimes work in a landlord’s favour.
Most buyers will be put off by evidence of subsidence, particularly if they are unwilling to do the research to understand the exact cause of the subsidence.
The complications associated with subsidence can bring the price of a property down by as much as 20%.
But remember, that saving comes with some serious risks attached.
Whether you decide to risk it or not, you should always ask for as much information as possible from the estate agent and the sellers.
Top tip: Ask for documentation on the repairs that were conducted, as well as an engineer’s report if possible. You could also get a speculative insurance quote to see whether there are any premiums attached to the area.
“If you are looking to buy a property to rent, it’s best to have a homebuyers survey carried out to assess the risk of subsidence so that you know what you are getting into. If the survey uncovers a subsidence issue, then we would strongly recommend commissioning a structural engineer’s report to understand the full extent of the problem. At Total Landlord, we also advise that you contact your insurer to understand whether they can cover the property.”
Speaking with the current owner of the property often gives you the best indication of the situation. You should, however, only use this as the basis of your research.
Despite what you may feel, you should always seek a professional opinion using evidence-based means to determine the true state of the subsidence. This will also help to give an indication of how the situation can be rectified.
If you decide to go ahead, always pay for a structural engineer’s full survey of the property to make sure that it’s sound.
Though time-consuming, a full structural survey provides a comprehensive report of the property’s condition and requirements, including any issues involving subsidence. In fact, some mortgage-lenders may require such a report as mandatory for properties with known issues of subsidence.
Unfortunately, some renters won’t want to live in a property with a history of subsidence.
Those that are happy to will probably want some kind of guarantee that they will be safe, such as evidence of corrective work.
They may also use the subsidence to negotiate down the rental price of the property.
As we’ve already mentioned, selling a property with a history of subsidence can be challenging.
The best way to improve your chances is to collate any documentation that you have to reassure the buyer that the property is structurally sound and not to try and deceive them if that’s not the case.
Collating this documentation provides evidence of the exact history of the property and will give confidence to the buyer that you as the seller have done all that you can to control the situation.
When the time comes to selling your subsidence property, honesty is the best policy.
You should never try to hide the subsidence as it will only put off potential buyers when, not if, they realise the property is affected.
In fact, showing you are proactive in dealing with the issue responsibly gives you a much better chance of selling.
