Buying a House With Subsidence

Buying a house with subsidence can present some obstacles when you’re applying for a mortgage. But, arranging a loan for this property type isn’t an impossible task if you’re armed with the right information and speak to suitable lenders.

This guide covers everything you need to know about the impact of subsidence, including the difference between minor issues and more significant structural damage. We’ll also explain how to approach lenders and where to get expert support.

Keep reading for a total explanation or click on a link below to jump straight to a section…

Can you get a mortgage on a house with subsidence?

Yes, this is definitely possible. But, you may find there are some extra steps involved, and fewer lenders willing to offer a mortgage. Your first task will be to make sure you establish the extent of any past subsidence problems. Then, guidance from a skilled mortgage advisor with experience in complex properties means they can direct you on the next actionable steps.

What is subsidence?

This term is used to describe what happens when the ground beneath a house starts to sink or cave in, often pulling a property’s foundations down with it. Sometimes, this can result in the house itself beginning to sink.

How does it happen?

It’s most common with older properties that have shallow foundations. It can particularly affect houses built on or near landfill sites and old mineshafts. Here are some more common risk factors that can potentially lead to subsidence:

• Large trees or shrubs nearby – roots can sometimes reach the foundations, leading to structural movement or damage.
• Areas prone to drought – surrounding soil is more likely to dry out, shrinking or cracking.
• Leaking water mains or drains – can soften the soil which then compacts under the weight of the house.
• Clay soil – underneath or near the property can shift and move during hot weather, making the ground unstable.

The difference between minor and major subsidence

There are different degrees to which subsidence can affect a house. The early warning signs of minor subsidence can involve:

• Crinkling wallpaper.
• Cracks near a property extension.
• Doors and windows becoming harder to open and close, sticking to the frames.

Most commonly, small cracks will appear on the inside or outside of the building. Often, if the crack is caused by subsidence, it will be a diagonal crack, wider at the top than at the bottom, and thicker than a 10p coin.

If not dealt with properly, this can develop into major subsidence. To the extent that the movement causes the house to visibly lean to one side, becoming unbalanced or structurally defective.

How it affects buildings insurance

In most cases, a history of subsidence can lead to higher insurance premiums due to the added risks. It might also mean you’re unable to get insurance for the property if you don’t speak with specialist insurers. Some lenders will even demand you take out particular policies. And, without buildings insurance, you won’t be able to get a mortgage.

How a broker can help with subsidence

This can be a tricky area to navigate by yourself. Each subsidence issue, whether minor or major, will be completely unique. So, getting advice from a broker who has plenty of experience overcoming these obstacles will save you a lot of time and effort.

The experienced brokers we work with will be able to guide you throughout the whole process. This means they can assist with arranging surveys and assessing any past or present subsidence. Then, they’ll be able to advise you on the next steps and introduce you to the most suitable lenders.

If you want to speak with a specialist broker with plenty of knowledge on subsidence, just make an enquiry. We’ll arrange a free, no obligation chat today.

Lenders available

Most mainstream lenders – such as those listed below – are happy to offer a mortgage for a house with historical subsidence. But, you’ll likely need to provide proof the issues have been properly resolved, and ideally show there’s been no further movement during the last 10 years.

• Virgin Money
• Bluestone Mortgages
• Pepper Money

If you want to see the full range of options for the specific property you’re looking to get a mortgage on, speaking to an expert broker is your best bet.

Eligibility criteria

Some lenders will have specific rules around mortgage eligibility for a property with any level of subsidence, past or present. To qualify for a home loan, this could involve:

• Taking out a specialist insurance policy.
• Putting down a larger deposit to offset the added risk.
• Caps on the maximum loan-to-value (LTV) ratio offered.
• Potentially higher interest rates.
• Sign-off from a valuer.
• Proof of appropriate warranties or guarantees for any work carried out.

Can you remortgage a property with subsidence?

Yes, but you’ll need to assess your options carefully. If your property has current or historical subsidence issues, remortgaging with a new lender means you’ll be treated as a completely new customer, and a potential mortgage risk.

The other option is to stick with your existing lender, moving to a more competitive product. Either way, it’s likely you’ll have to prove any necessary work to rectify the subsidence has been carried out. But, you may be in a stronger position if you stick with your current lender than if you try to remortgage elsewhere.

Should you buy a property with subsidence?

This will be your decision to make. Buying a house with a history of subsidence can present some extra difficulties when you’re trying to get a mortgage.

But, if you’re prepared for the extra effort and open to instruction and direction from an expert advisor, it’s very possible to rectify any subsidence concerns and get a mortgage.

Ways to deal with the problem

You can attempt to prevent issues in a few different ways:

• Ensure that any external plumbing, pipes, or guttering isn’t leaking.
• Don’t plant certain trees or shrubs nearby. If they are already there, don’t dig them up, because this can lead to instability or waterlogging.

Surveys

There will potentially be subsidence issues that are completely outside anyone’s control. In which case, the first step will be to get a specialist survey to investigate and find out the extent of the subsidence issues.

Once you know the severity after a full structural survey, you can look into options for tackling the problem. How much a subsidence survey costs will vary, depending on the size of the house, the location, and the depth of the investigation.

Underpinning

In some cases, the property may need underpinning. This isn’t ideal because it’s an expensive and lengthy job. One that would mean vacating the house for a period of weeks or months. If you’re planning to buy a property with a history of subsidence, make sure you check if this work has been done. And, obtain any proof or paperwork from the seller.

Speak with a broker who specialises in complex properties

Getting a mortgage on a property that has current or historical subsidence can be difficult. Each lender will have its own rules and restrictions around what they will and won’t accept. Speaking with a broker who is an expert on this complex topic is well worth it.

We offer a free, broker-matching service, meaning we’ll quickly assess your particular property needs and then pair you up with an experienced broker.

Just call 0808 189 2301 or make an enquiry. We’ll set up a free, no obligation chat between you and a broker who specialises in properties with subsidence today.