Selling a house with past underpinning

If the work has been done properly, and successfully, then selling a house with past underpinning shouldn’t be any different from selling a normal house. Unfortunately, shouldn’t is the operative word here. In reality, it can be much tougher to find a buyer.

Underpinning carries a whole bunch of baggage with it, from stigma to mortgage and insurance worries, from concerns about future subsidence to fretting about a future sale. Even if your underpinned house is actually more structurally sound than neighbouring properties that haven’t been fixed, it’ll still be harder selling a house with past underpinning than selling one without.

Selling a house with past underpinning is still possible, but chances are it will take a lot longer and you will get a lot less. That’s why many people turn to cash house buyers when selling a house with underpinning, to get a swift, stigma-free sale.

Let’s take a closer look at exactly what underpinning is and how it affects your property sale…

What is underpinning?

Underpinning is a process used to shore up properties that are suffering from subsidence. Underpinning does exactly what it says on the tin, providing support under your home when the original foundations have failed. It can be done by either excavating soil and replacing it with concrete, inserting reinforced concrete beams or driving in concrete or metal piles that reach down to firmer soil or bedrock.

Underpinning is not always necessary for homes with subsidence, and it’s usually only needed in around one in ten of these properties. Underpinning costs anything from £5,000 to £50,000 or more, depending on the extent of the work needed. This cost is usually covered by buildings insurance, though there’s often a substantial excess to pay.

If the underpinning is done professionally, and the source of the subsidence is resolved, an underpinned house is as structurally sound as any other. So why is selling a house with underpinning so hard?

Why is selling an underpinned house harder?

Naturally, buyers will always prefer to choose a house that has no problems, or history of problems. This is perfectly understandable, and we’d probably all make that same choice. Underpinning inevitably carries a stigma, and in the current buyers’ market, this will put you at a significant disadvantage if you’re selling an underpinned house

If the underpinning was done in recent years, it will be more of an issue. Buyers will be concerned that the work will not be sufficient and the subsidence problems may return. The same will be true for mortgage lenders and insurance companies. The older the underpinning, the more evidence you’ll have that the issue has been solved, and so it becomes less of a concern.

You need to be able to prove that the source of the subsidence has been dealt with, or that it has been negated by the underpinning work. If there is a mineshaft near your property, or issues with the soil, then there’s every chance that the problems will return, requiring further work. This will be a big red flag to any potential buyer.

On the flip side, if the issue is widespread in the local area, as it often is in the South East of England, many neighbouring properties will also have been underpinned. This makes your home much less of a black sheep and puts your right back in the game, competing with similar properties in a similar situation.

The final reason why selling a house with past underpinning is so difficult is that few of us buy a home that we expect to live in forever. Most of us see a home as an investment as well as just somewhere to live, and buyers will want to choose a home that has the best potential for a profitable sale in the future. Naturally, buyers will be worried about their own problems when it comes to selling an underpinned house.

Is an underpinned house worth less?

The less interest you get in your property, the lower the price you can expect to sell it for. Selling a house with past underpinning will not reduce the value as much as untreated subsidence, which can cut the value by 20-25%, but it will still knock off around 5% compared to similar houses. That might not sound fair, especially if you’ve spent at least that getting the underpinning done, but that’s just the way it is.

Buyers will want to be compensated for the risk of future problems, as well as for the increased cost of arranging their mortgage and buildings insurance. Less interest also means less competition, so you won’t be able to negotiate for a higher price.

How to sell an underpinned house fast

Selling an underpinned house is perfectly possible via your local estate agent. However, you need to be prepared to wait longer, perhaps a lot longer, for a buyer. You also have to accept that you’ll get a little less than the market value when you finally do sell. Try to find an agent who has experience in selling a house with past underpinning, as they’ll understand the issue and be able to reassure potential buyers.

You can also sell an underpinned house at auction. This can give you a quicker sale, in around two to three months, although once again you’ll get a lower price, plus you’ll have to pay fees and commission to the auction house. If you want, or need, a quicker sale, you can sell a house with underpinning fast to a cash house buyer. These companies will buy any house in any condition, with a cash deal in around 28 days.

Do you have to declare underpinning?

As with many property problems, it’s always tempting to just hide the issue and not mention it. After all, underpinning is buried deep in the ground, so no one will ever know, right? Wrong! Like most potential problems, from noisy neighbours to subsidence, you’re obliged to fess up on the TA6 Property Information form that’s part of the conveyancing process. If you don’t admit to having underpinning work done, and it gets that sinking feeling again in the future, you could be sued by the buyers.

If you have had good quality underpinning work done, it’s better to be completely upfront about it. You should provide potential buyers with all the paperwork you got when the work was done, including the Certificate of Structural Adequacy and Formal Completion Certificate. You should also keep copies of any subsequent monitoring reports from your structural engineer. The more evidence you can provide to prove the work has been successful, the less of an issue it will be for your buyers.

Can you get a mortgage on an underpinned house?

If the work has been done professionally, to the set standard, then there’s no reason that your buyers won’t be able to get a mortgage on a house with past underpinning. Once again, the older the installation, the less of a problem it will be. If the underpinning work has only been completed recently, then the mortgage lender may insist on extensive and expensive surveys before they make their offer, if indeed they make an offer at all. This can put buyers off, and if they do proceed, your buyers will expect a lower price to compensate them for the extra costs of securing a mortgage.

Can you insure an underpinned house?

It is possible to get buildings insurance on a house with past underpinning, though similarly, the more recent the work, the higher the premiums will be. There’s plenty of business out there and so insurers have no incentive to take on unnecessary risks. Some insurance companies will refuse cover and you may need a specialist broker to find an affordable policy.

If you do get insurance, you’ll find that the subsidence excess will be substantially higher than it is for a property that’s not been underpinned. You may even find that future subsidence is excluded from the cover. Again, your buyers will expect this extra expense and hassle to be reflected in the price.

Summary

Most work on your home will benefit you when you come to sell. Replace your windows, refit the bathroom or install a new kitchen, and it’ll add to the value and make it easier to find a buyer fast. Unfortunately, while underpinning makes your home more structurally stable and secure, it has the opposite effect, reducing the value and making a buyer harder to find.

Sadly, all the proof and paperwork in the world can’t overcome the stigma when it comes to selling a house with past underpinning, especially if you need to sell fast. That’s why subsidence and underpinning are two of the most common reasons that people choose to sell to a cash buyer. Instead of waiting months to find a buyer, and getting beaten down on price at every turn, only for them to get cold feet at the eleventh hour, you get a guaranteed cash offer and a quick sale, with none of the stress and problems of selling a house with past underpinning on the open market.

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