Can You Get a Mortgage on a House Close to a Mineshaft?
The UK has a rich mining heritage. It’s not surprising that more than 110,000 UK homes are found near abandoned mine shafts and coal mines. You might be questioning whether it is possible to get a mortgage if you want to purchase a property near an old coal mine.
This article will discuss how a mineshaft is located near a property and how it affects your ability to get a mortgage. We’ll also show you how to overcome any lending obstacles that may be encountered with the right mortgage advice.
Click the link below; we have a mortgage provider who can advise you on a home near a mineshaft and then introduce you to a mortgage lender who works with homes near a coal mine.
Get started online
Is it possible to get a mortgage on a property located near a mine shaft?
Yes, you can. It’s not uncommon for a mortgage lender to consider mortgages in such situations. While you will need to meet specific criteria to avoid additional risk, many lenders will still consider your application provided that there are adequate legal and regulatory assurances.
Lender Concerns
Living near a disused coal mine comes with risks and coal mining hazards. It’s understandable why some mortgage lenders are hesitant about lending to properties in coal mining locations.
They are concerned about the possibility of losing their investment. A fall in property value is well-documented for properties in mining areas, particularly if mine shafts have been damaged. There have been instances where properties lost as much as 100% of their market value.
Although it is rare for a property to suffer significant damage or loss, there are still risks associated with land that contains disused mines. These risks can be devastating to properties nearby.
- Sinkholes
- Soil erosion
- Flooding
- Contaminated groundwater and surface water
Most of the disused mines are now filled. This stabilises the ground and reduces the risk of any of these issues. However, collapses can still happen many decades later. It is strongly advised that you pay attention to the advice given by surveyors and ground stability specialists, regardless of the mortgage lenders requirements.
Don’t let it go if you want to buy a house on an old coal mining site. Some mortgage advisors may not have the expertise that you require. However, our broker-matching service is free and will match you with a broker with the necessary knowledge to help you secure a mortgage for a property near abandoned mineshafts.
Get started online
What should you do if a mineshaft denied your mortgage application?
Although many control measures must be taken, very few properties are considered unmortgageable because of the proximity to disused mine shafts. These circumstances could mean you haven’t found the right lender and are denied a mortgage.
Our mortgage advisers have extensive knowledge and experience in securing mortgages on properties located to abandoned UK mine shafts.
They also know which lenders will accept this application and how much risk they are willing to take.
They have the best chance to secure a mortgage suitable for your needs, regardless of how close the mineshafts are.
Get started online
Policies of lenders
Most lenders in this market will approve mortgages if the property is more than 20 meters from a coal mine. Specialist lenders will look at mortgages near a mineshaft more than high-street lenders. However, some lenders will insist that you work with intermediaries. This means that you will need to use a broker to access them.
Each lender has specific criteria for lending on this type of property; for example, some banks are willing to consider applications based on satisfactory surveyor/environmental reports.
You may have to meet the following criteria and then apply:
- A property must not be less than 20 meters from a mine
- You may have to make a higher deposit to compensate for a lower loan to value.
- In some instances, a mining report, a coal mining risk assessment, a mining geologist and more detailed local searches are required.
Past issues can be resolved – If your property is located in an area with previous problems directly related to mining, it will likely be harder to find a lender. However, some lenders may accept underpinning for properties that have suffered subsidence from a shaft collapse.
What is the closest you can get to a mine shaft?
The Law Society, Royal Institution of Chartered Surveyors (RICS), Council of Mortgage Lenders (COML) and Association of British Insurers all agree that 20 meters are the minimum acceptable distance.
It might be challenging to obtain a self-build mortgage if you are planning on building your home. Self-build mortgages, a specialist lending, can make it more complicated than simply purchasing a property on dangerous ground.
The farther your building plans are away from near a mineshaft, the easier it will be. To be able to move forward, you will need a broker who can help you find a specialist lender. They might be able to help you explore other financing options, such as a bridging loan.
Legal Requirements
To begin developing this project, you must comply with a few building rules. It may be difficult to get planning permission. To start creating this project, you must submit the Coal Mining Risk Assessment and your application to local authorities.
A planning permit is not required to obtain finance. However, an experienced broker might be able to advise you on the UK regulatory regime, risks and other requirements.
Survey requirements and mining reports
Although coal mining was the most well-known mining activity in the UK, it wasn’t the only one. The property’s geographical location can give clues about the type of mines present. Even though the risks are the same regardless of which mineshaft is near you, this can make a big difference in who you contact to search for such hazards and how much financial protection you have.
Depending on where they are located, lenders can request any or all the following searches. A broker who has the right experience in this area will be able to recommend reliable conveyancers:
- Coal mining is the most common abandoned mine and the least likely to be demolished, as the coal mining industry has lots of unused shafts. The Coal Authority provides accessible data on mining. They also offer a variety of in-depth reports that can cost from multiple thousands to hundreds of thousands of pounds, depending on their scope. The Coal Mining Subsidence Act 1991 covers property damage directly caused by coal or mine shafts. They will pay for repairs and compensation for any loss.
- Tin or copper mining – This type of mine can often be found in South West Devon, Somerset, and Cornwall. In these areas, a Metalliferous Mining Search is likely to be required to determine the proximity of your property and the risk they pose.
- China clay mining. This type of mining was done in Cornwall, Dorset and Devon. If you are interested in buying in an affected region, lenders will likely require a clay mining search.
Match you with a broker who is experienced in complex cases
Don’t sell your dream home if it is located on an old mining site. An expert broker can help you find a lender once you know the acceptable risk level.
Not all mortgage advisors have the knowledge that you require. Our mortgage brokers have the experience and expertise to help you secure a mortgage for a property close to abandoned UK mine shafts.
Click the link below to begin your journey to your dream home near a mine shaft.
Get started online