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Sorry I missed this Darren. My work is mainly about residential properties. I'd recommend you seek out a facebook group or forum for guest house owners where you will probably get the answers you are looking for as well as some other advice which is beyond the legal requirements but gained by others through experience.

@@howtoreallybuyaproperty1661 I appreciate the reply regardless. Perhaps you know the answer to this? If not no worries, just worth an ask! A criterion for change of use in our selected area is that the property has been advertised for 12 months. I’m trying to find out what they mean by advertised. I can assume it’s advertised for sale, however assuming can make an .. well I’m sure you know! Do you happen to know ?

@@darrenelkins5923 Change of use is usually handled at county level so I would start by asking them as it may vary from area to area. If there is statute or case law they will also know about it. If it is in case law, and that case law is old, then 'advertised' can mean some really weird things so check carefully!

@@howtoreallybuyaproperty1661 Thanks for that answer . much appreciated

Almost all properties have the potential to subside so there is always risk - just as there is risk every time you get behind the wheel of a car. But your questions isn't totally clear. Did the survey say there was subsidence because you say "what happens when I move in and it gets worse"

@@howtoreallybuyaproperty1661 the survey said that they thought it was historic subsidence

@@carlfielding2082 So it may start again or it may not. But a property that has never had any subsidence may start subsiding. It's not really a risk you can completely mitigate. You lender has said they are prepared to take the risk and that's probably as good as it gets. However, as I say in the video, keep the same insurance company as the seller.

It's a common mistake. A proper assessment should be carried out first. I most cases trees should not be removed, the should be managed through periodical lopping which in turn stops or limits root growth.

Glad it helped!

All properties need constant maintenance, especially period properties where a roof might need replacing every 20 years or so. It's just like cars and tyres. Find out how much a new roof (like-for-like) will cost and decide if you think this is reflected in the price you are paying when compared to other similar properties in your area.

The only person who can answer this with confidence is a structural engineer

All properties have some risk of subsidence. Climate change and extreme weather conditions have added to this. If there is a long dry period the soil will shrink. If there is a prolonged wet period the soil will expand. In some areas this is more likely than others - e.g. North London is built on clay, South London on a former marsh - both make subsidence more 'likely'. Properties in former mining towns are built above collapsing tunnels. Further if it is a period property it probably has minimal foundations as well. That's just how properties are in the UK. Further remember the surveyor needs to cover himself to "you can't say that he didn't tell you". My general rule is if the surveyor has valued the property at the price that you have offered then he has factored in the risks and still concluded the property is worth what you are paying for it.

@@howtoreallybuyaproperty1661 Thankyou very much for your answer Tim . The property I am looking is in Harrow Weald London . It’s built around 1930 mid terraced house . I just did RICs leve2 survey with no valuation added . . There has been no any history of subsidence what the seller wrote on the draft so if I take building insurance will it make it safer in future ? Thankyou agian 🙏

Happy to answer questions here but I don't do 1 to 1 consultations. (and remember comprehensive info is in the book)

I have to say I don't really understand most of your comment. Who provided the building report? It sounds like a surveyors report. That aside, if I was buying I would get a structural engineer to give the property the once over. As far as insurance goes, it has nothing to do with getting a mortgage. All the papers (including the structural engineers report of you get one) will go to the lender and they will decide if lending on the property is a good idea. Even if the property is fully insured the lender might decide they don't want to take the risk...

Thanks I appreciate the response. It was level 3 Building Survey.

@@EugeniaMiller-ff9rh In that case it is a surveyors report so as per the video you need a Structural Engineer to give you a concrete answer of what is going on with the property. Keep in mind that properties like this can really spook surveyors (especially those new to the job) but then you find a Structural Engineer turns up, shrugs his shoulders and says the place is rock solid! I've seen this many times regardless of how floors slope or walls have cracks.

@@howtoreallybuyaproperty1661 thanks. We will get a structural Engineer to have a look and if it’s not progress we should be ok. I’ll let you know how it’s progressing. The house itself over 100years old in South East. There are no external wall cracks and no cracks next to windows or doors. It’s just inside a cupboard where drywall is on top floor. So hopefully it has been there for many years.

Ask a solicitor for costs and timescales but my question would be: Why do you want to? By the Freehold but keep the Leasehold. It may be useful to a future buyer.

OK but then I have to apply for a lease extension since there's only 25 years on it.

@@RuairiGogan Yes but if you own the freehold you can apply to yourself. You will need to check with a solicitor on the costs of this.

@@howtoreallybuyaproperty1661 So if I want to extend the LH after I buy the FH, can I do it for free or some token amount say GBP1 or is there some valuation criterion?

@@howtoreallybuyaproperty1661 Also I own the LH in my name, should I buy the FH in my name or my Ltd Co. name? TIA

You might find this helpful: www.checkatrade.com/blog/trade/start-business/how-to-become-a-roofer/

Thank you so much in advance for this video!

The point about keeping the same insurer is this. Let's say you buy the property and change the insurance company. 6 months later you find subsidence. The new insurance company might say "This started more than 6 months ago, not our problem" and the previous insurance company will say "This is new, not our problem". So keep the *current* insurance company to avoid this sort of thing happening.

@@howtoreallybuyaproperty1661 Oh I see makes a lot of sense and will make sure to do so this week. Thanks again! Really appreciate the speedy response too 😊

Glad it helped!

I'd get a Structural Engineer (not a Structural Surveyor) to have a look at it. Subsidence in itself is not an issue, a property can be super wonky but structurally sound - some flats in Edinburgh are on breathtaking slopes but they are fine. It's when the subsidence is active and the property is actively sinking that action needs to be taken. A structural engineer will be able to tell you if they think there is active subsidence or the property should be monitored for subsidence before proceeding (or, of course, if the property is stable). Remember many UK houses (especially pre-war) have almost no foundations to speak of so your situation is not unusual!

Glad it was helpful!

As I said in the video ... surveyors are not roofers. They can only suggest that the roof needs investigation (unless it is so blindingly obvious that even you would see the issue). I have had surveyors say this and when a roofer went round (and roofers look for work because that's their business) they came back proposing a few hundred pounds of work to touch up some flashings here and there. I'm not saying that is the case for you but get someone who does roofing for a living to take a look and give an accurate cost estimate. If he agrees with the surveyor then this is an unexpected cost you need to discuss with the vendor/agent. The vendor will know the issue will come up again with the next buyer so they' have to renegotiate the price at some point, might as well be with you.

Glad it helped you

I think the length of your question probably gives you a clue. You need to take professional legal advice from a solicitor who has inspected all the documentation regarding your property. All leases are different, some have very strange clauses in them - I have even seen one which references the number of sheep that can be kept at a property! So take your papers to a solicitor and they will outline your best route forward. Do not, in any circumstances, take advice from anyone on the internet (here or in a forum) about something so complex. They're not going to be liable when you find out they are wrong!

Personally I would resolve the structural question by getting a structural engineer to report on the property. If the structural engineer says there is no subsidence (or active subsidence) file the report and, when you come to sell the property, present it to the buyers surveyor. If the time between the structural engineers report and the buyers survey is short it usually assures the surveyor that the property is sound (at the moment). Remember underpinning for the sake of underpinning, especially of a terraced property, can do more harm than good if the terrace has annual movement so its not always an answer.

Thank you very much, that is most helpful.@@howtoreallybuyaproperty1661

Glad it was helpful

Not sure what you are saying here? If a buyer is not qualified to assess subsidence then they have to accept someone else's assessment ... and that would be the assessment of a structural engineer (not the surveyor). Or have I misunderstood you?

Glad it helped

Trees are only one cause of subsidence. Victorian houses rarely have foundations more than a few bricks thick. They would throw up these terraces in huge numbers and many often collapsed soon after! Those that survived ... survived. But changes like a collapsing air pocket or an underground stream drying up can affect a single house in a terrace. Also a neighbour underpinning their house can cause issues because their house is no longer moving but yours is!

Spot on. As I mention in the video keeping the current insurer on older properties - even if there are no signs of subsidence - is also a good move.

Indeed, the video is a breath of fresh air with lots of sound advice. All buildings are subject to movement of one kind or another. For damage up to and including Category 2 (max 5mm) BRED 251 suggests that “unless there are clear indications that damage is progressing to a higher level it may be expensive and inappropriate to carry out extensive work for what amounts to aesthetic damage.”

It very much depends on the state of the market. If the seller could easily get another offer you probably don't have much haggle room. A different question would be why the surveyor down valued the property. Is the surveyor from a different area and so unfamiliar with the market. There was a time that Woolwich Building Society used surveyors from outside London to try and save money ... but these surveyors could not believe London prices and so always down valued properties. Deals failed, the next buyers used a different mortgage provider who used local surveyors and deals went through. For a while anyone trying to buy in London with Woolwich mortgages was doomed to waste money on a pointless valuation.

Yes, possibly. However I am not a structural engineer so I can't comment. A structural engineer will normally recommended the best way forward and, as you have pointed out, this is not always underpinning!

There is no need to do anything. It does not detract from the value of the property and perhaps having a leasehold option will be useful to someone in the future.

@@howtoreallybuyaproperty1661 Hi, how can it be useful in the future? I do not understand that. Thank you!

@@lenilsonsg Sorry! Completely missed this comment earlier. It could be useful if you wanted to sell the leasehold but keep the freehold and use it as a form of income (via Ground Rent payments)

@@howtoreallybuyaproperty1661 thanks Sir, not a problem at all. Appreciate your answer.

I'm not sure I follow you. You sold your house as freehold and now it is for sale again (from the new owner) but as leasehold? Is that correct?

@@howtoreallybuyaproperty1661 I bought the house as freehold which is a semi detached. It turns out I own both free and leasehold. The estate agents now listed it leasehold on their sites. All properties in my area are freehold. I concerned there might be a problem when it comes to selling.

@@claudiarobinson4488 I assume you are planning to sell both - the leasehold and the freehold. If so let the estate agent know so they can update their details. It is possible someone misunderstood something and thought you were only selling the leasehold - or was not aware that you own the freehold as well and so can sell it. They should have checked but ..... hey .... not all agents are thorough.

Glad it helped!

Most properties are not completely underpinned - it might be one wall or one corner. In this case future buyers may be concerned that there could be subsidence elsewhere in the future. This much is true. However I wouldn't ever put a figure on how it affects the property value because there are too many other factors. Let's say the property was in a desirable school catchment area and there was very little on the market at the time. In that case you would probably get a similar price to similar properties (without subsidence). However, if there was a glut of properties when you came to sell .... well .... yours is the 'problem' one and you would have to discount to attract a buyer.

Good to hear!

Yes - removing the ground rent would be rare. Changing the ground rent amount is not so rare. Many freeholders charge nominal amounts anyway (say 10 GBP per year) while others charge thousands

Glad it helped you!

This is a sort of "I've covered my back" sort of thing. Now if the house suffers subsidence in the future you can't sue your solicitor because "he told you so". But vast areas of the UK have "a risk of subsidence" - especially period properties - however properties in these areas are bought and sold every day. So yes, there is a possibility of subsidence occurring in the property you are buying. Should you worry? Most people don't - they just make sure they are properly insured. If it concerns you then buy elsewhere (although that can be difficult sometimes as you may have to travel some distance to find a subsidence free area) or buy a modern house with solid foundations.

@@howtoreallybuyaproperty1661 thank you very much!

Sorry Alex - missed this. A deed of variation is basically like something being added to a contract. If there is a dispute later about the deed of variation the matter would be dealt with by a judge in a court who would look to interpret what both you and the freeholder were trying to achieve when creating the deed of variation.

Does this book include examples of/templates for deeds of variation? For example, if thr freeholder has agreed, ans we don't want to involve a solicitor, does the book advise on creating this form and filling out the AP1 to accompany it so we can submit to the register ourselves?

First of all its important to understand that almost all properties have the potential to subside - especially period properties - so just because you buy one that doesn't have any history of subsidence doesn't make it 'safe'. This is especially true now because climate change has created longer and more intense periods of both wet and dry weather. But do find out if any underpinning was done and where. It's often just one wall so that still gives the other walls the potential to subside. Regarding the resale. Yes - the 'S' word does put people off so that should be reflected in the price you are paying. It is the same principle as properties by busy roads. You buy cheaper than other similar properties in the area because of the road and when you come to sell ... you sell cheaper. Now if you are not getting a discount on this house that could be because the market is very strong in your area - not enough properties and too many buyers. The seller knows that if you don't "take a view" someone else will come along that will. Regarding banks. The key is what your surveyor said when they valued the property. Did they value it at the price you offered? Or did they down value / put a retention on based on a structural engineers report? If they valued it at the price you offered then you will have no problems selling to someone who needs a mortgage because the surveyor has said "there is historical subsidence but I still value the property at XXX GBP" and that is all the banks are interested in.

@@howtoreallybuyaproperty1661 Thank you very much for the reply! I'll take all of that into account. I'll let you know if I end up buying the house =)

Please comment

Sorry Milo - missed this originally. It depends on the market conditions. In the book there is a chapter called The Balance of Power which explains this. If property is in short supply then the vendor may say "you pay or I'll find another buyer". If they are reasonable they may go halves. If the property market in your area is weak the vendor may agree to pay. There is no set principle for who pays for what. The starting point is to talk to the estate agent. If the vendor is touchy and the market is strong they may walk away (withdraw contracts) and that would be their "reply"!

@@howtoreallybuyaproperty1661 thanks for your reply, is it unreasonable to ask for a survey if I am paying for it? What do you think should be the vendor’s reaction?

OK. Remember this. The surveyor needs to make sure s/he is well and truly covered and some surveyors (not all) can go completely over the top with their doom. That may or may not be the case here. So certainly it sounds like a structural engineer is in order and just stay calm until s/he has reported. I've had no end of surveyors cry wolf only for a structural engineer to shrug his shoulders and say "All good here". Not always but more often than not. Seasonal ground movement is common in many areas of the country which means you might have to live with some cracking if you want to live in such an area and in an older property without deep foundations. Otherwise consider something more modern with more modern foundations.

Yes, I think this may well be a case that the surveyor is trying to ensure that they are covered. I think this way as in another section of the report they mention "With any property of this age, no matter how well maintained, defects are likely to be found on close inspection. Very few properties of this age are without some form of defect, therefore consideration should be given on whether the defects found are of immediate significance or can be treated as ongoing maintenance. Although evidence of structural movement was found to the property, this appears to be historic, however this does not mean that further movement will not occur in the future." I will get the structural engineering inspection done, and will let you know what they say. Fingers crossed it is one of those instances where it is just a false alarm. Thank you very much once again for your video and advice! It is truly very helpful.

Check the status of the insurance. Is the property fully insured and how long has that insurance company insured that property. Insurance companies like to wriggle out of payments by trying to prove any new subsidence didn't happen on their watch so the longer the property has been with the same provider the better. Second see what the bank says - are they OK to lend on the property. If so that's a good sign that they have no concerns over this history. Overall l wouldn't be overly concerned. If the property was underpinned in 2007 and your surveyor saw no issues it means the underpinning was done right. That's not a guarantee that there will never be any subsidence in the future ... but that uncertainty applies to many, many properties.

Huge swathes of England and Wales are areas of 'moderate natural subsidence' so this is not unusual. Did the surveyor value the property at the price you offered? If so they are not concerned. Has the bank approved the mortgage? If so they are not concerned. If they aren't you don't need to be. That's not a guarantee that there will never be any subsidence in the future ... but that uncertainty applies to many, many properties across the country. You are just as likely to see the same warning on the next search results of another property if you walk away from this one.

That's in the book ;)

I'm not a specialist in subsidence treatment - the video is more about working out what to do (in terms of should you buy or not) if the surveyor suspects subsidence

At first glance this sounds like someone trying to cover themselves! For example much of North London is built on clay, much of south London was marshland. There are endless Victorian and Georgian terraces and houses here that have virtually no foundations so they all have a 'potential for ground subsidence' ... but this does not stop them being bought and sold every day. So ... did the surveyor value the property at the price you offered? Has the surveyor said to the lender that they should not lend on the property or should not lend until a structural engineers report is carried out? If not and the lender is ready to move forward with the mortgage then it sounds like the surveyor is just pointing out the obvious - many UK properties have the potential to subside, especially older ones.

I would say that's too general. There are plenty of properties which have subsidence and have been standing for hundreds of years. If you really love the place you have found watch the video to understand the different types of subsidence so you can make a fully informed decision.

@@howtoreallybuyaproperty1661 Plenty of properties have subsided which becomes historical and if identified as historical by engineer certificate or repaired guarantees then yes buy as will get mortgage. Without testing no one can tell if it's ongoing. Settlement cracks are different from subsidence cracking. 100s of thousands of houses have settlement cracks and it's rare to find one that has none. My advise if subsidence is mentioned in home report or survey report walk away unless asking price has considered the cost of repair/rebuild and if it is flatted property it's 100% walk away. If terraced or semi detached legal searches should pick up on any subsidence which could devalue other properties close by if not attached.

@@charlieritchie5980 I can see where you are coming from but I would disagree on some points. If a *structural engineer* concludes there is *active subsidence* you need to give the purchase careful thought - too much to cover in a comment here. However a *home report* or *survey report* is not carried out by someone qualified to conclude there is subsidence. Only a structural engineer can do this. In my own experience the vast majority of surveys that flag a *possible* subsidence issue end up with a structural engineer saying the property is sound. That's really one of the key points of this video.

@@howtoreallybuyaproperty1661 No home report or valuation survey will put a signature to the statement that they have identified subsidence. They may identify cracking and advise a structural survey could evaluate situation. Most structural surveys come back say settlement or historical movement and I agree. These reports are just a licence to print money and been advised by valuers with no knowledge of building construction (their best guess) My point is if a property is really cheap there is a reason and buy as seen.If a buyer sees open cracking in masonry this is not DIY and the property may not be the bargain you think

@@charlieritchie5980 Sorry - missed your reply earlier ... but yes, I think we are both on the same page :)

Its never happened that way ... but then again I have probably never sold your property for you! So yes, a seller could think this way but better red flags to focus on would be a) after having accepted the offer has the buyer instructed a survey within 7 days? b) Has the buyers solicitor been in touch with your solicitor within 7 days. On the other hand I have seen a £1.4m deal nearly fall apart because the seller wanted £250 for the washing machine so better definitions early on often help the selling process rather than hinder it.

@Ring Ring - I don't have enough information to make that call. This could be a very cautious surveyor - just as these days you could say almost any property has "the potential risk of flooding" and 'poof', you have covered yourself. You might find a clue in the current insurance premiums. Are they higher than you would expect for a similar house in another area. That would suggest the insurance company has priced in a subsidence risk. Perhaps even give the insurance company a call and ask them, based on this survey report, would they increase their insurance premiums in the future.

I have never known a more difficult time to get a mortgage (except perhaps 2009) and lenders are constantly changing their goal posts so some who used to be more relaxed about your situation aren't any more. Remember there is still risk here - the insurance company could go bankrupt, the insurance company might still wiggle out of their promise if they get 'new information', etc, etc. If you really love the house look into 'Conditional Exchange' where you set the completion date for, say 12 months from now subject to the works being carried out to a level which is satisfactory to a mortgage lender (ask your solicitor how to do the exact wording). This would lock the seller in to sell and ... remember this ... you to buy. That means if anything happens in the next few months such as you loosing your income stream you would still be legally required to complete or loose your deposit paid at exchange. You can of course mitigate this with something like income insurance if you want to be completely covered but such policies can be pricey.

Glad it helped!