Barry Road Subsidence

[brightfield]

Thanks

[Sazzle30]

We had the same issue with a property in cp. We couldn't get insurance and our broker said resale would be an issue.

The only insures who would touch us - based on a regular full structural survey was Midas - part of RSA. Steep excess for a subsidence claim but if you really love the place and willing to take a risk them speak to them.

We decided against buying but I'm over cautious about everything

[lameduck]

I would not buy trouble

underpinned twice

should you ever sell this house, your buyer will be asking the same question

[Richy86]

which end of the road is this? Down towards P Rye or up towards Dulwich Library?

[intexasatthe moment]

But on the other hand ,if you buy a house that's already been underpinned and has a certificate of competency ,isn't that a good thing ?

In that lots of houses in this clay soil area need underpinning and at least such a house has already had it done ?

[Mustard]

Was it underpinned twice in the same place? Was it done by the same insurance company both times? Was it under guarantee when it was done the second time? Perhaps Barry Road houses suffer from subsidence due to the buses going up and down the road. Ivydale Road seems to suffer from the same problems.

[The Minkey]

Underpinned twice and still signs of subsidence, I wouldn't touch it.

[brightfield]

Thanks

[Richy86]

another question is whether or not you are buying the freehold or are you going to be a leaseholder? If it is a lease then you need not worry as much as the responsibility probably lies with the freeholder.

I would probably walk away if you are taking on the freehold unless some guarantees can be made or you have a full structural review of it.

[DuncanW]

Sorry to disagree, but you may well find that the freeholder will just reclaim the money from the lessees.

Plus you will lose control of managing the situation/controlling costs, etc.

Richy86 Wrote:

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> another question is whether or not you are buying

> the freehold or are you going to be a leaseholder?

> If it is a lease then you need not worry as much

> as the responsibility probably lies with the

> freeholder.

>

> I would probably walk away if you are taking on

> the freehold unless some guarantees can be made or

> you have a full structural review of it.

[Richy86]

DuncanW,

I agree with you on the loss of control/managing the situation. My experience with our managing agent is a nightmare.

I just meant that at least you can divide that cost of the excess on the insurance rather than taking the full hit.

Rich

[Jeremy]

Would only go for it if the risk is reflected in the price. And if it's the house I'm thinking of... it isn't.

[AbDabs]

brightfield Wrote:

-------------------------------------------------------

> Hi

> I'm looking at a house for sale on Barry Road. It

> turns out the property has suffered subsidence

> very badly and has been underpinned twice. Most of

> the other houses close by are also showing severe

> signs of movement. No one will give me a quote for

> insurance without a structural engineers report.

> Can anyone give advice? By my mind this should be

> heavily discounted compared to a similar house

> without structural problems. The whole front

> garden and front wall appear to be falling

> massively towards the road. Without insurance I

> wouldn't be able to get a mortgage on it. Should I

> just run away?

> Also, prices in the East Dulwich area really seem

> to be dropping, open house days have stopped and

> estate agents are calling me instead of me calling

> them (despite what you read in the press a buyers

> market seems to be returning), should I just sit

> and wait for 6 months?

> Thanks

If you know that the whole front garden and wall are already falling away then this doesn't sound like an insurable property. (If you know it's collapsing then it's not an insurable risk). If you had the cash, it might be worth offering a sensible amount to allow for (what sounds like certain) necessary underpinning plus, a minimum of, say, ?50K for risk. If you need a mortgage for anything more than the land value then you're probably wasting your time.

Also, I'm not sure sold prices are dropping (land registry sold price only had a few spikes, mostly constant upward trend) just the prices that houses are being put up for sale at. There did seem to be a couple of months of overoptimistic marketing but that has calmed down (except for a few mad hopefuls out there). Now we're into the holiday season the spring rush is over.

[dollydaydream]

Hi

I wouldn't touch the house, with forward thinking

you will want to sell the house at some point which will

be difficult especially as there is no paper work

for the underpinning.

Leave well alone another house will come along, if it looks

like a bargain it is because of the underpinning.

Can say you have not been warned!!

[brightfield]

Hi Jeremy

I

[Pugwash]

Much of the subsidence in Barry Road was due to the poor management by Southwark of the trees, many insurance companies took legal action against the council for failing to maintain the trees resulting in over growth and root damage to sewers etc. That is why the trees are cut back very severely some years. My neighbour had subsidence over 10 years ago and he ended up paying several thousands in excess payments. His insurance company got some money back from Southwark

[brightfield]

Thanks

[Jeremy]

Yes that's the one I was thinking of. It could be a really amazing house, but it will be a nightmare to sell on. You're talking about spending hundreds of thousands refurbishing a house, which you may end up having to let go for a knockdown price.

But if you really love the place, maybe worth getting a thorough structural survey (i.e. not the type the banks offer for a few hundred quid) to establish whether the underpinning is adequate and whether there's any signs of current/recent movement. And then try to find out what price the vendor is realistically hoping to get.

[nunhead_man]

Hmmm - engineers report? Trouble is you need to see if it is still moving - are the present owners monitoring ? 6/12 months data is good.

Usual trick isto tape over cracks and see if the paper rucks up - properly done you put ceramic straps across the cracks and see if they break with the movement

~And remember clay both shrinks and expands with water etc

[Jeremy]

I guess you'd assume any cracks would have been stitched as part of the original remedial work, therefore any large cracks which have not been stitched could be assumed to be "new" and evidence of ongoing movement.

[eastdulwichproperty]

Is it worth ?950k? needs about ?250k-?300k spending on it. By the looks of things may be lucky to achieve that