Subsidence & Heave!
By the time an owner recognises (usually by seeing cracks or feeling a sloping floor) that a building is at risk from ground movements, some damage will have already taken place. It then becomes a question of: does it just need a quick repair? … Or does the insurance company need to be contacted to sort out the cause and prevent more damage? Although most buildings experience minor movement over time, cracks over 5mm that do not close or continue to open wider (i.e. active cracks) indicate a more serious problem.
Properties with visible damage are often not mortgageable, and may even have a value of zero placed on them by valuation surveyors (with a recommendation that the owner must call in qualified specialists to assess and undertake repairs). This is all well and good if the property carries insurance and the owner can be patient to resolve the issues. It’s more likely that problem properties are sold off quick (as cash purchases) possibly for sale at 50% of their real worth at auction or via a sourcer to an investor. These properties can offer great potential for a careful investor, however a little knowledge and due diligence is vital.
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