Getting a mortgage on a property close to a mineshaft is complicated when compared to other regular mortgages. This is because of the risks involved in getting a loan for such properties.
The first thing that you need to do before applying for a home loan is to find out if your property has any risk factors associated with it. The most common risk factor is the presence of a mine shaft or tunnel. If there are any tunnels, then you will have to get an expert opinion from a geologist and also check whether the area is prone to earthquakes. You can also ask your local council about this matter.
If you find that your property does not have any risk factors associated with them, then you can proceed with the application process. However, you should be aware that the lender may require you to provide additional documents like a title report, survey report and environmental impact assessment report.
The next step after finding out all these things is to apply for a home loan. There are many lenders who offer loans for properties near mines. Some of them even offer special packages for people who live near mines. These packages include lower interest rates, no processing fees and no prepayment penalties.
Once you have applied for a home loan, you will have to wait for the approval letter. Once you receive the approval letter, you can start making payments toward your home loan.
In order to make sure that you get the best deal possible, you should always shop around for different lenders. It is important to compare the interest rate offered by various lenders so that you can choose the one which suits your needs.
In this article on mortgages close to the mine shafts, we will explore all the possibilities in which you can get your mortgage application approved. We will answer the most asked questions such as can you get a mortgage on a house near a mineshaft, what are the additional checks, a mortgage lender considers, how you can find the past coal mining activity in the area, etc.
Can I get a mortgage if a property is close to a mineshaft?
While some mortgage lenders may reject applications for advances on properties close to mineshafts, there are others that – given adequate reassurances – may be prepared to grant you the mortgage you need.
Given the additional challenge in securing a mortgage on any such property, you might want to consult specialists such as us here at Needing Advice, where our experience and expertise may help you identify a willing lender.
What additional checks may a lender need?
Not only is it in your own interests, but any lender will also need to see evidence of the searches made by your solicitor or conveyancer about past mine working in the area near the home you want to buy.
Specialist mining searches may also reveal whether previous owners of the property have had recourse to claims against the Coal Authority for damage caused by subsidence. The government website details the procedure that would have been followed by any property owner making such a claim.
The Coal Authority publishes a number of reports about past coal mining activity and can provide an assessment of the risks associated with a particular property or piece of land based on its postcode.
How do I find out about past coal mining activity?
The government website makes clear that you can find out about past coal mining activity in the area in which you are interested in buying a home, coal mining hazards that have been reported in the past, and any plans for coal mining in the future.
Unfortunately, however, the information relates only to potential hazards from coal mining and the presence of other types of mineshafts is often unrecorded.
It is imperative that before you proceed with the purchase of any property in an area you believe to have been subject to any mining or mineral extraction that you instruct your solicitor or conveyancer to do the necessary searches.
If you are interested you can also check our article on Income Protection Insurance Guide.
Get expert help when getting a mine shaft mortgage
Whenever a potential mortgage lender seeks further reassurance, the more information – and the more detailed and professionally informed information – you can provide, the better.
Reports prepared by the Coal Authority, for example, reflect expertise based on an incomparable database of coal mining and unique access to an archive of historical maps and plans.
We have already mentioned the specialist mining searches conducted by your solicitor or conveyancer, for example. You might also want to instruct a surveyor who specialises in work concerned with damage caused by mine workings and excavations to prepare a report on the property.
But there are also specialist companies you might instruct to carry out site analyses of mining and ground stability together with a detailed site survey. A synopsis of the type of work and examples of the reports produced may be found on the website Future Climate Info.
If you are interested you can also check our article on Gurantor Mortgages.
Mortgages for a house near a mineshaft are likely to prove challenging to arrange.
However, that is not to say it is impossible to get a mineshaft mortgage – you may simply need to provide rather more in the way of reassurance to the lender than normal.
Mining and mineral extraction of one sort or another has been surprisingly widespread throughout the UK, with mineshafts and sinkholes continuing to cause buildings to subside and their owners try to seek compensation for the damage caused. In the case of coal mining, that responsibility for remediation falls fairly and squarely on the shoulders of the Coal Authority.
Unfortunately, however, many non-coal mining activities remain unrecorded.
If there is any possibility of the home you want to buy being located close to past mine workings, therefore, you might need to seek specialist help in securing a mortgage.
Here at NeedingAdvice.co.uk Limited, we are ready and waiting to offer whatever help you may need in getting a mortgage for a property near a mineshaft – just contact us to find out more.
If you are interested you can also check our article on Additional Borrowing on Mortgage.
FAQs – Mortgages close to mineshafts
What is the best place to request a mining report in the UK?
You can always request a mining report in any area from the coal authority of the UK.
Can you build on top of a mine shaft?
It can be dangerous to build over or within the influencing distance of a mine entry (shaft or adit), posing significant risks to both the development and occupants. We will suggest you, contact a ground stability expert, before building on top of a mine shaft.
Will I get a mortgage if my house is close to a shaft?
Getting a mortgage on a house close to a mineshaft is complicated, you need to contact a mortgage broker before starting your application.
Can I get a mortgage on residential property near a shaft?
Yes, but only if you can show that the risk of subsidence is low enough to allow you to borrow against the value of the property. We suggest you contact a mortgage provider before starting your loan application.
How much does it cost to get a mortgage on a property near a mine shaft?
The costs vary depending on the size of the mine shaft and how far away it is from the property. Contact a mortgage provider to discuss your options.
How do I know if my house is close enough to a mine shaft to affect its value?
A good rule of thumb is that if the mine shaft is less than 10m wide then the chances of it affecting the value of the property are very small. However, if the mine shaft is wider than this then you should consult an engineer who specialises in ground stability.