Don't let subsidence send your house price tumbling Insurance companies, reluctant to take on homes that have been underpinned, are jeopardising sales. Hugh Thompson reports

The Sunday Telegraph London | November 14, 2004| | Copyright

WHEN Peter Frog put his five- bedroom home in Putney, London, up for sale earlier this year he came in for a couple of shocks. First, he had to shed pounds 50,000 of the pounds 950,000 asking price before attracting any offers and second, when he eventually agreed an offer, the deal fell through because of something that had happened 19 years earlier.

In 1985, seven years before the Frogs moved in, the house had been underpinned because of subsidence. The underpinning came with a guarantee. When the Frogs moved in, they took out household insurance with NatWest, their mortgage lender.

Some ...

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