Can You Sell a House with Subsidence? [UPDATED 2021]
In Q4 of 2018 the UK saw incredible levels of claims for subsidence. Over the 12-week period subsidence claims peaked at £64 million – the highest level ever. Subsidence can not only be expensive to resolve but it can skyrocket insurance premiums and affect the saleability of a property.
If you house has been affected by subsidence our guide will help you distinguish whether you can sell or not. But first, let’s understand what subsidence is.
What is subsidence?
Subsidence happens when the ground under your house sinks or caves in. It is most problematic when the ground underneath a house is sinking at different rates as it causes the foundations of a proper to become misaligned, threatening the structural integrity of the building.
What are the signs of subsidence?
Cracks appearing on walls, especially in older properties is not always a sign of subsidence. Keep an eye on cracks that:
- Appear close to a door or window
- Are wider than 3mm
- Are visible inside and outside
- Spread diagonally across a wall
Other signs to be aware of include:
- Rippled wallpaper
- Doors and windows sticking when opening and closing
- Cracks appearing between a property and extension
- The home appears slanted or wonky
Your home could be struggling with subsidence and you’d never know as it can lay dormant for years until signs appear. Your home could me more at risk if it is built on clay, is surrounded by trees or has experienced a prolonged hot and dry summer.
What is historical subsidence?
It is not impossible to sell a home that is currently, or has, experienced subsidence. You will need a surveyor to visit your home and asses the structure and foundations. The surveyor will be able to distinguish if the subsidence is historical or ongoing.
- Historical subsidence means that any continued movement is unlikely, and no improvements need to be made.
- If subsidence is ongoing then work needs to be carried out to resolve the subsidence before selling.
If you are selling a property with historical subsidence you will need to disclose previous issues with the estate agent. They will them make any prospective buyers aware; be prepared that it may take longer to sell your home as subsidence can be off putting, even if historical. You may even have to lower your asking price if the subsidence was recent.
Does underpinning devalue property?
Underpinning is an action that is used to strengthen the foundation of a property and is subsidence solution. You can sell a property that has been underpinned as long as it has been completed to a good standard and there are no ongoing structural or subsidence issues.
How much does underpinning a house cost?
Just like any structural work, the cost of underpinning will vary between properties and the scale of the subsidence issues. When obtaining quotes, the size of the job, the duration, property access and whether the subsidence has caused aesthetic or structural issues will be taken into consideration.
Below, we have highlighted the average cost per wall. You will need to multiply by the number of walls that will need work to get a rough estimate:
|Underpinning a single wall in a terraced home (4m)||£21,200|
|Underpinning a single wall in a semidetached home (5m x 4m)||£47,700|
|Underpinning a single wall in a detached home (8m x 6m)||£74,200|
Be aware there may be additional costs, such as a structural engineer inspecting the property reguarly or paperwork needing completing to be submitted for planning permission purposes.
Is subsidence covered by house insurance?
Rectifying subsidence can be expensive, particularly if underpinning is needed. Cases of subsidence are complex when it comes to insurance. However, subsidence is covered by the majority of house insurance policies, usually only if your home has never suffered with subsidence in the past. Depending on your coverage, insurance should cover all damage and the cost of repairing items and alternative accommodation. Often underpinning is only covered by specialist insurance packages but you will need to liaise with your provider should the worst happen.
Selling house with subsidence
You can sell a house with ongoing subsidence, but you should be prepared to take a serious drop in asking price. This allows the buyer to undertake the work that needs to be conducted to rectify the subsidence issue. Furthermore, properties will likely need to be purchased by cash buyers as mortgage lenders are unlikely to touch properties with ongoing subsidence as they are uninsurable in their present state.
Selling an underpinned house
As we have previously touched upon, you can absolutely sell a house that has been underpinned. When you sell you will need to declare that your property has been underpinned. Failure to do so can result in legal complications as the buyer will be protected by The Misinterpretation Act 1967.
Selling an underpinned property means you need to be clear and transparent with your estate agent and with any potential buyers. When you sell it is helpful to provide your insurer’s name so that the new occupants can continue under the same cover if they so wish. This can be useful going forward if another subsidence claim needs to be made in the future.
What impact does underpinning have on a mortgage?
Underpinning does not have an affect on securing a mortgage. Your estate agent will be able to give peace of mind to any interested buyers with this information. Your property survey will be able to highlight that the underpinning has been completed to a high standard and your home has no ongoing structural issues at is not at risk to anymore subsidence. Only houses with current subsidence issues will be refused a mortgage. This is why you should carry out the structural problems before you come to sell.
The only other scenario where failure to obtain a mortgage may happen is related to insurance. If a property is unable to secure house insurance than a lender will not be able to give a mortgage. This is because the grounds for a mortgage are dependant on the property being able to be insured. However, as mentioned, if the property is sound and there are no issues from the survey this will not be a problem.
How much does subsidence devalue a property?
Issues with subsidence can affect the selling price of a property by around 20%. On a £300,000 property this would be a decrease of £60,000. This percentage is on a sliding scale depending on the severity of the subsidence.
If you’re struggling to sell your home with ongoing or historical subsidence, get in touch with SOLD.CO.UK. We are an online estate agent offering customers a fully managed route to sale that is fast, free, and fair. If you’re house has subsidence, we can help. You can request a free valuation online to get the ball rolling or give the SOLD.CO.UK team a call on 0800 566 8490 today.