Mineshafts and how their existence might impact mortgages
In this guest article, Jude McLean discusses the problem of mineshafts and how their existence may have an impact on obtaining a mortgage.
The UK’s history of mining is infamous and it’s legacy one that conjures up fond memories for many, as well as fiery debate amongst different communities throughout the nation.
Yet today, the network of abandoned mines can have a real impact on mortgage applications, sometimes even halting approval completely.
But what if you want to buy a property located near an abandoned mine shaft? Will it be approved for a mortgage? And is it ever a good idea to buy a home in such a high risk area?
Can you get a mortgage if the property is near a mineshaft?
As you may imagine, a mineshaft can lead to many potential issues when looking to secure a mortgage for a property near or on one.
This is due to the fact that the mineshaft can lead to issues with the structure, threaten it’s integrity and in extreme cases make it uninhabitable and therefore unmortgageable.
Yet, believe it or not, it’s still possible to secure a mortgage near to a mineshaft, but there are certain precautionary measures to take before applying for a mortgage.
Lenders will often want additional evidence that the mineshaft does not pose any threat to the properties in question, neither at present and in the future.
Mineshafts and Mortgages: The Important Factors
The majority of mineshafts do not cause any issues to nearby structures, but they may still pose a risk to the integrity of the buildings at a later date. For this reason, lenders will be cautious when approving mortgages in these areas, if the property could potentially devalue over time as a result.
Since there are numerous abandoned mines throughout the country, information about them and whether they impact the surrounding property isn’t always obvious.
As a result, a solicitor or conveyancer is usually involved in the process, when purchasing land in an affected area. They will usually do a coal mining search to determine the risks and meet the requirements made by the lender.
Checks by the Coal Authority
If the property in question is near to a now abandoned coal mine, you can request a mining report from the Coal Authority.
The Coal Authority is the department whose job is to keep records of where mineshafts are located. If a property is purchased in close proximity to a mineshaft, then the Coal Authority is obligated to cover any costs that may be incurred as a result of the property being there.
It’s worth noting that this only covers coal and brine shafts. There are a variety of other types of mines that have poor records, so it’s likely the lender will request more investigation prior to approving a mortgage.
A coal mining report will provide the following information:
- Mine entries within 20 metres of a property’s boundaries.
- Gas emissions from coal mines.
- Other coal mining hazards reported in the area.
- Plans for future coal mining in the area.
Can you get a mortgage for a house near a mine shaft?
A property near or on a mine shaft can have major implications and can cause problems such as:
- Soil erosion.
- Underpinning movement.
- Sinkholes.
- Contamination of ground and surface water.
- Other structural issues to the property itself.
Surprisingly, the mineshaft can have a negative impact on the building in the very far future, perhaps even decades or centuries later. For this reason, it’s crucial that a mining search is conducted when looking at any property in a high-risk area.
A mining search isn’t a legal requirement, however, knowing the potential property is safe can offer reassurance and help secure a mortgage.
Often a mortgage lender will not approve an application without a mining search and sometimes will even request an in-depth survey be carried out by a structural engineer. This is especially true for areas with a record of affected properties.
You can check if the property in question is likely to require a mining report on the Coal Authority’s Official Website.
Kindly shared by Jude McLean
Main article photograph courtesy of Pixabay
