# Building Works and Risk Concerns



## MichaelW2 (16 Mar 2020)

We have been struggling with plans and costs for a much needed upgrade to our terraced house.
The upgrade will create official independent access to 2 bedrooms (4 in total with up to 3 for language school students) plus lots of other stuff.
We have had some insurance foundation works done and the surveyor can issue a Certificate of Structural Adequacy. The mortgage company are requesting a Full Structural Survey. The structural engineers say go back to the original surveyor. He says that all the engineers will do is repackage his certificate with a £500 bill.
It is unusual for a mortgage company to request full structural survey on a Victorian mid terrace esp with the foundation strengthened.

Crunch time is coming. The builder wants a deposit. The mortgage company will not guarantee a mortgage. I am little worried about the security of the company I work for ( not a lot). I am worried that we dont have enough contingency.
My wife is adamant that the works go ahead to upgrade our shabby home.

Any advice, experience, counselling welcome.


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## Cycleops (16 Mar 2020)

That's a difficult one. I'd be most concerned that the mortgage company won't guarantee a mortgage. I've read some horror stories about radical works on Victorian houses.
Can't advise but you should proceed with caution.


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## alicat (16 Mar 2020)

MichaelW2 said:


> My wife is adamant that the works go ahead to upgrade our shabby home.



If your wife is prepared to take on the consequences of the works grinding to a halt because of coronavirus or you losing your job, then press the button.

If an extra £500 is causing worry before you've even started, then the project is probably underfunded.


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## Pale Rider (16 Mar 2020)

MichaelW2 said:


> It is unusual for a mortgage company to request full structural survey on a Victorian mid terrace esp with the foundation strengthened.



I suspect that may depend on the amount they are advancing, and how much that leaves you in total debt.

Value is always a consideration, but it doesn't matter to you what the structural engineers/surveyor does to get the £500, so long as what they produce does its intended job of satisfying the mortgage company.

For what its worth, £500 sounds about right to me for a structural survey.

I had one done on a terraced house as a prospective rental investment.

Can't recall exactly what I paid, but £435 rings a bell, and that was in the north east where most things are a bit cheaper than elsewhere.


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## Salar (16 Mar 2020)

Foundation repairs and works are classed as building works and as being "notifiable" i.e they need Building Control approval.

The company which did the foundation works should have notified Building Control. If they did register it you should have approval and it will come up in searches on your property.

If not you can get an indemnity policy to cover you for works carried out without Building Contol approval as long as the works were carried out more than 12 months ago and you have not contacted Building Control.

Some mortgage companies accept this get out of jail card, some don't.


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## MichaelW2 (16 Mar 2020)

Salar said:


> Foundation repairs and works are classed as building works and as being "notifiable" i.e they need Building Control approval.
> 
> The company which did the foundation works should have notified Building Control. If they did register it you should have approval and it will come up in searches on your property.
> 
> ...


It was the through legit established local companies through NFU insurance. No cowboys. The foundation strengthening was by pumping resin or glue into the ground


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## Levo-Lon (17 Mar 2020)

I suspect this is the lender looking at investment in a mid terrace Victorian house that's required structure works.

We're living in interesting times.. your builder is panicking just like every other business and with good reason.

As for your wife it sounds like it will be your fault regardless 

The next month will be unprecedented, I'd hold on for a month.


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## Salar (17 Mar 2020)

If as you say the mortgage company want a full structural survey, the structural engineer would, I expect request for the foundations to be exposed.


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## Grant Fondo (17 Mar 2020)

It is not unreasonable for the mortgage co. to request a full survey after underpinning works have happened due to potential movement in walls and floors being supported.


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