Q We are in the process of purchasing a property and have a report that states our property is within 50 metres of coalmining subsidence claims. We’ve had a full structural survey done, which says there is no evidence of current subsidence, but are awaiting a full mining report for the area.
We want to know if this will affect the value of our future home. Also, if we go ahead with the purchase should we ask for a reduction in the sale price in view of the fact that it will cost us significantly more to insure?
AF
A Anyone buying property in a former or current coalmining area is strongly advised to do a coalmining search. Property near to both past and current mining activities can be at risk of subsidence because of being on unstable ground. If your solicitor doesn’t automatically do such a search, you can do it yourself using the Coal Authority’s online search service.
The results of this search will tell you if you need to order a mining report. The Coal Authority’s most popular report (CON29M) costs £45.24 and is essential reading for anyone considering buying property within a coalfield area. This particular report provides information on past, current and proposed underground coalmining activity, along with details of any recorded coalmine shafts and possible licences for future mining activity.
Most importantly, a report will tell you whether the property is at risk of being affected by coalmining activity and also whether further more detailed reports are necessary – if, for example, the initial report identifies a mine entry within 20 metres of the boundary of the property. It will also say whether there have been any subsidence claims for neighbouring properties within 50 metres of the property boundary.
If the mining report reveals a problem, the Coal Authority advises that it is vital for investigative work to be carried out before you agree to buy. Alternatively, you could pull out of the purchase or, as you suggest, lower the amount you are prepared to pay.
You are right in thinking that the nearby subsidence claim will make insuring the property more costly. However, if the property were to suffer from mining-related subsidence, you wouldn’t claim on your buildings insurance for the cost of repairing the damage. Rather, under the Coal Mining Subsidence Act 1991, you claim from the mine owner. To do this you have to download and fill in the Coal Authority’s damage notice form and send it to the owner of the coalmine in your area (or to the Coal Authority if there isn’t an owner).
