Mortgage for Properties Near Mineshafts: Expert Guidance

Getting a mortgage on a property close to a mineshaft is more complicated than getting a regular mortgage. 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 it, you can proceed with the application process. However, you should be aware that the lender may require you to provide additional documents, such as a title report, survey report, and environmental impact assessment report.

After finding out all these things, the next step is to apply for a home loan. Many lenders 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.

To ensure that you get the best deal possible, you should always shop around for different lenders. It is important to compare the interest rates offered by various lenders so that you can choose the one that suits your needs.

In this article on mortgages close to mine shafts, we will explore all the possibilities for getting your mortgage application approved. We will answer the most asked questions, such as whether you can get a mortgage on a house near a mine shaft, what additional checks a mortgage lender considers, how you can find past coal mining activity in the area, etc.

Post Topics

Can I get a mortgage if a property is close to a mineshaft?

What additional checks may a lender need?

How do I find out about past coal mining activity?

Get expert help when getting a mine shaft mortgage

Next Steps

FAQs – Mortgages close to mineshafts

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.

Next Steps

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 a 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, the chances of it affecting the property’s value are very small. However, if the mine shaft is wider than this, you should consult an engineer who specialises in ground stability.

What is a mineshaft?
A mineshaft is a vertical or sloping passageway made into the earth for extracting minerals, often associated with the coal mining industry. They can pose soil erosion and coal mining hazards.

What are the risks with mineshafts?
Risks include property damage, soil instability, and potential shaft collapse, which could impact nearby property and pose additional risks.

When will these risks become a problem?
Risks become a problem when there’s subsidence, surface water issues, or coal mine gas emission, especially in areas with a disused mine or unrecorded mineshaft.

Where am I likely to find mineshafts?
Mineshafts are commonly found in well-known mining areas, especially regions with a history of coal, clay, or copper mining.

Can a mineshaft cause subsidence?
Yes, mineshafts can cause subsidence, leading to significant property damage and soil erosion.

What happens when a coal mine has been closed for years?
Closed coal mines can still pose hazards like subsidence and water drainage issues, requiring a coal mining risk assessment.

Can I get a mortgage if my house is close to a mineshaft?
Yes, but you might need a specialist lender aware of the additional risks and willing to consider your mortgage application with a comprehensive coal mining report.

What additional checks could the mortgage lender need?
Lenders may require a mining search, coal mining report, or environmental report to assess the risks associated with the property.

What are the criteria for mortgages near mineshafts?
Criteria can include satisfactory surveys, risk assessments, and ensuring the type of property is secure against potential risks.

How much deposit will I need?
Deposits can be higher for properties near mineshafts due to the additional risk, varying by mortgage provider and the specific property in question.

Can a first-time buyer get a mortgage for properties near a mineshaft?
Yes, with the help of an experienced mortgage broker and a lender who offers specialist mortgages for such properties.

What to do if the property doesn’t meet standard criteria?
Seek advice from a mortgage adviser or consider alternative financing options like a bridging loan.

Will there be additional costs?
Additional costs can include higher insurance premiums, specialized surveys, and potential future coal mining plan adjustments.

How much can I borrow?
The amount you can borrow may be influenced by the property’s risk assessment, your financial situation, and the lender’s criteria for mortgage.

Is it harder to sell a house near a mineshaft?
It can be more challenging due to the perceived risks, requiring transparent disclosure documents for potential buyers.

Who pays if a mineshaft collapses near my home?
The homeowner is typically responsible unless specific insurance coverage addresses such incidents.

What to do if you’ve had a mortgage refused because of a mineshaft?
Consult with a specialist mortgage adviser or look for lenders who offer mortgages for properties near mineshafts.

How close to a mineshaft can you build?
The acceptable distance varies, but a mining engineer or geotechnical engineer can provide guidance based on ground investigation.

How to sell a house with a mineshaft?
Obtain a detailed coal mining report, ensure transparent communication, and possibly seek assistance from an experienced broker.