Would you purchase a property with subsidence?

Would you purchase a property with subsidence?

15:47 PM, 10th June 2014, About 9 years ago 20

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I have seen a property that I would like to buy as a BTL but understand now that it was underpinned around 10 years ago due to some subsidence with the likely cause being leaking drains that softened the ground. The property is in otherwise good condition. Would you purchase a property with subsidence

My main concerns are a) mortgage ability and b) insurance

Does anyone have any experience of this? Is this one to keep well away from or could it be okay given the work that has been carried out?

Any experience to share out there would be most appreciated!



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Neil Patterson

9:24 AM, 11th June 2014, About 9 years ago

Reply to the comment left by "Mark Alexander" at "11/06/2014 - 09:12":

Mark, again although it pains me I agree with you LOL

Risk is however relative to the size of your portfolio.

If you are very experienced and have a large number as you do the risk is self insuring as if one goes a bit pear shape the percentage risk to your portfolio is low.

However if you have 1,2 or 3 properties and one goes south the effects are felt far more.

Neil Patterson

9:26 AM, 11th June 2014, About 9 years ago

As long as you have all the facts attitude to risk is a very personal and subjective.

Mark Alexander - Founder of Property118

9:40 AM, 11th June 2014, About 9 years ago

Reply to the comment left by "Vanessa Warwick" at "11/06/2014 - 09:12":

There will always be "nay sayers", e.g.

1) don't buy in London because the yields are too low and there's a bubble which is due to burst
2) don't let to student, they are party animals
3) don't invest into HMO's, the regulations and licencing are terrible
4) don't let to benefits tenants, they have nothing to lose
5) don't let to young families, the kids wreck the house and half of the couples get divorced
6) don't let to young professionals, they are like the students but they have money
7) don't let to old people, they eventually go senile and are a nightmare to deal with, or they die
8) don't buy flats, the service charges are a rip-off
9) don't do holiday lets, people steal the fittings and the maintenance and cleaning is a nightmare
10) don't buy houses, tenants never cut the grass and it brings the area down
11) don't have a mortgage, interest rates could go up
12) don't buy property, they are over-valued and managing tenants is a nightmare

and so the list goes on.

Listen to the nay sayers and you will never invest in property because you will inherit a condition called "analysis paralysis". This condition comes to many investors who, in their hearts want to buy more but others convince them over time that they shouldn't or can't.

My advice is to replicate success. Find a person who is successful and trust worthy and the type of person you want to become. By all means listen to everybody but pay the most attention to the people you want to emulate.

Neil Patterson

9:52 AM, 11th June 2014, About 9 years ago

Reply to the comment left by "Mark Alexander" at "11/06/2014 - 09:40":

Very good point/s.

I am an underpinning "nay sayer". There you go I admit it lol.

9:54 AM, 11th June 2014, About 9 years ago


I think we should call ourselves underpinning "realists". More accurate description, no?! 🙂

18:40 PM, 11th June 2014, About 9 years ago

Just wanted to say a big thanks to all for sharing their views. It really has been very thought provoking. I am still digesting it all and will hopefully make the right decision!!

Jeremy Smith

0:16 AM, 12th June 2014, About 9 years ago

I bought a property which had the "underpinned/subsidence" label on it.

Years before I bought it, I watched as they tore down the badly constructed, cheaply built extension, which was pulling away from the house....
The cheap-skate owner claimed £40,000 on his insurance.....
they drilled holes 50 ft (15m) deep, 6 of them, at corners and in the middle of the sides of a 10 x 18ft extension, filled them with steel and concrete, wired them all together and concreted over the whole lot !!
..At the time I thought "that's not moving anywhere in the future !!

after I bought it I was having to pay twice the insurance premiums than others in the street, and with a £5,000 excess for subsidence claims.

BUT... I now have good access into a large building plot in a sought-after village in cambridgeshire !!!....
- it depends upon your motivations, aims and rewards - It was definitely worth it for me .!!

micky alderson

13:27 PM, 14th June 2014, About 9 years ago

Well done Jeremy you took the risk it paid off.

He bought this house that was falling down,

A do Ron Ronny, a do Ron Ron,

He got a Quotation that made him frown,

A do Ron Ronny , a do Ron Ron,

These are properties of a different kind,

A do Ron Ronny , a do Ron Ron,

You've heard my view so don't be blind,


22:43 PM, 15th June 2014, About 9 years ago

Reply to the comment left by "micky alderson" at "14/06/2014 - 13:27":

Beautiful lyrics Micky!

Jeremy Smith

0:42 AM, 17th June 2014, About 9 years ago

Reply to the comment left by "micky alderson" at "14/06/2014 - 13:27":

- Very nice micky !

- I quite agree,
if you are only buying it just because it's a bit cheaper than one without these previous problems, then I, too, would avoid it like the plague.

My purchase was for the larger prize, it was not the prize in itself.

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