Buying a House with Subsidence: What You Need to Know

You’ve found what could be your dream home—it’s charming, it’s affordable, and it’s got that little garden perfect for summer BBQs. 

But wait, there’s a catch. 

You’ve just heard the dreaded word: subsidence. 

Before you cross it off your list, let’s talk about what subsidence means, how it can be addressed, and whether buying a house with subsidence is still a good idea.

This guide explains everything you need about buying a house with subsidence.

What is Subsidence?

Subsidence means the ground beneath a building is sinking, which causes the property to move downwards. 

This movement can make your house unstable. It happens when the soil under your property shrinks or shifts, often because it’s too dry, there’s clay in the ground, or a nearby tree is taking up too much moisture.

Whatever the reason, subsidence can cause cracks and structural issues—not ideal when you’re looking at your future home.

The good news? Not all subsidence is serious. Sometimes, it’s minor, and the solution is simpler than you might think. It’s all about understanding the issue and making an informed decision.

Types of Subsidence

There are two main types: ongoing subsidence and historic subsidence.

• Ongoing Subsidence. This is subsidence that’s currently active, meaning the ground is still shifting, and cracks are likely still forming. This kind can be pretty challenging, as most lenders shy away from financing a house with active issues.
• Historic Subsidence. This is subsidence that happened in the past but has since been stabilised. It might still sound a bit scary, but a house with historic subsidence can actually be a safe purchase if all the necessary repairs were done correctly. Plus, these homes often sell for less, which could be a great opportunity for the right buyer.

Signs Your Property Has Subsidence

How do you know if a house has subsidence? Keep an eye out for these tell-tale signs:

• Diagonal Cracks. Cracks are the biggest red flag. Not just any cracks, though. Look for those that are wider than 3mm and run diagonally, often near doors and windows. They may be wider at the bottom than the top.
• Sticking Doors or Windows. If doors or windows are difficult to open or close, it might be because the frames are warping due to uneven movement in the building.
• Wallpaper Tears. Especially if it’s near the ceiling or corners, this could mean the walls are shifting.

Not all cracks mean you’re in trouble. Minor hairline cracks could just be the result of natural settlement or temperature changes, but it’s always good to get an expert opinion.

How to Fix Subsidence

Fixing subsidence isn’t just about patching up the cracks. The underlying cause needs to be addressed so it doesn’t happen again. 

Here are the main ways to deal with it:

• Underpinning. This is the big one. Underpinning involves strengthening the foundation of the house by extending it to more stable soil. It can be costly, but it’s often necessary for severe cases.
• Removing Trees or Fixing Drains. Sometimes, minor subsidence is caused by nearby trees or a leaking drain. Simply removing the offending tree or repairing a drain can solve the problem. This is often the case with minor subsidence.
• Jet Grouting or Piling. These are other methods that might be used to stabilise the soil, particularly if underpinning isn’t an option.

How Much Does It Cost to Fix Subsidence?

The cost can vary wildly, depending on the severity. Underpinning alone can cost anywhere between £5,000 to £50,000. 

Minor repairs, like fixing a broken drain or removing a tree, are much cheaper, usually a few hundred to a couple of thousand pounds. 

It’s crucial to get multiple quotes and factor this cost into your decision when buying a house with subsidence.

Is Buying a House with Subsidence Worth It?

The answer really depends on your situation and risk tolerance. Subsidence can mean a lower price tag, but you also need to consider the costs of repairs and the potential challenges in selling it later. 

Here are the pros and cons:

Pros:

• Potential for price negotiation
• Lower market value compared to similar properties without subsidence
• May be in a desirable area that would otherwise be out of budget

Cons:

• Higher insurance premiums or limited insurance options
• Potential costly repairs
• Difficulties securing a mortgage
• Reduced pool of future buyers due to subsidence history

Can You Get a Mortgage for a House with Subsidence?

Getting a mortgage for a house with subsidence can be tricky, but it’s not impossible. 

Most lenders will only provide a mortgage if the subsidence has been addressed and there’s proof the property is now stable.

Typically, they will require a Certificate of Structural Adequacy, which shows that underpinning or other remedial work has been carried out properly.

How to Get a Mortgage?

To get a mortgage for a house with subsidence, you’ll often need to:

• Hire a Structural Engineer. Get a full report that shows the extent of the subsidence and proof of repairs.
• Provide Documentation. Lenders will want to see documents like the Certificate of Structural Adequacy.
• Find a Specialist Lender. Not all lenders will finance these properties, but there are specialist lenders who do. Working with a mortgage broker can help you find the right one.

Can You Remortgage a House with Subsidence?

Remortgaging a house with subsidence is similar to getting a mortgage for buying one. 

If the subsidence has been fixed, you’re more likely to succeed, but some lenders will still be cautious. 

You’ll need all the paperwork showing that the issues have been addressed. If the subsidence is ongoing, most lenders will refuse until it’s fully repaired.

What About Insurance for a House with Subsidence?

Insuring a house with subsidence is certainly more challenging, and you can expect higher premiums. 

Most mainstream insurers may decline to cover a house with a history of subsidence, but there are specialist insurers who deal with these kinds of properties. It’s important to get quotes early on so you know what to expect.

If you’re buying a property that was underpinned, you may need to stick with the current insurer or use a specialist broker. 

Be prepared for an excess that could be significantly higher than standard policies.

Things to Consider When Selling a House with Subsidence

Selling a house with a history of subsidence can be more complicated. 

Buyers might be wary, and mortgage lenders can be strict. 

Make sure to keep all documentation related to any work done, including structural surveys and repair certificates. 

Honesty is crucial—subsidence issues will come up in surveys, so it’s best to be upfront.

The Bottom Line

Buying a house with subsidence isn’t for everyone, but it could be an opportunity for the right person. 

Make sure to get expert advice, conduct thorough surveys, and factor in all potential costs before making a decision. 

A good mortgage broker can be a real lifesaver when dealing with subsidence. 

They can help you find lenders who understand these issues and get you the best possible mortgage deal.

Here’s what a mortgage broker can do:

• Find lenders who specialise in subsidence
• Help you get the best mortgage terms
• Guide you through the mortgage process and surveys
• Negotiate for better mortgage terms
• Save you time by handling paperwork

If you want to save time and stress, contact us. We’ll connect you with a trusted broker who can help with your specific mortgage needs.

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