Subsidence is the steady downward movement of a building or structure caused by changes in soil conditions or underlying ground movement. As the ground moves lower, the foundations of the building can become misaligned. This process may cause the walls and floors to move, which can lead to cracks and cause the building to be unstable.

There are several common reasons for building subsidence:

• Following a drought, the soil can dry out causing subsidence
• Vibrations in the ground caused by passing traffic or excavations
• Heavy rain or leaking drains have damaged the soil and its foundations
• Old mines or quarries can cause instability as the material used to fill the site will move as it decomposes
• Trees might be planted too close to the property, plants drain the moisture from the soil causing it to dry out and sink
• The age and construction of the building can be a risk as the older the building is the more risk that the foundations are shallower. However, older buildings tend to be built from bricks and lime mortar which tend to be more flexible
• New homes or extensions can often experience cracking as the structures settle under their own weight.

Subsidence usually occurs in majority clay or silt soil as these are both cohesive, which enables them to swell and shrink when wet or dry. This is the surface where the biggest changes can be seen. Subsidence can also be mistaken for heave; however, this is the opposite, as this is when the ground swells upwards. This is usually due to the clay soil becoming wetter than usual.

Signs of Subsidence

There are many signs of subsidence that can either occur on the outside or inside of the building. The severity of the problem can be identified based on the visible signs.

If subsidence has occurred, cracks are likely to have appeared in the walls. Not all cracks can be a sign of subsidence. The cracks will usually be diagonal and visible on internal and external surfaces. They tend to be wider than 3mm and can usually be found in close proximity to a door or window.

Another telling sign is sloping or sinking floors. These can be easy to identify as the floor may appear uneven and gaps may emerge near the skirting. A further key indication is sticking doors or windows. This can be due to movement within the building or due to the warping of the frames as the building sinks.

The next image shows movement between the slab joints to a distance of approximately 60mm. Repairs had been carried out previously however the movement continued thereafter.

The image to the below shows substantial stepped cracking down to the floor slab level, which is an indication that the wall is pulling in different directions. Based on information we received from a structural engineer the site is located in a high risk area for coal mining, which is a possible cause for the subsidence.

What effect does subsidence have on the building’s operation?

If subsidence occurs beneath a business structure, it must be addressed quickly and effectively to avoid any revenue loss and associated costs to the owner or occupier. The loss is frequently substantially more than the cost of repair. Sloping floors can be disruptive for machinery and similar operations which can slow down productivity. To ensure there is no risk to the business or the staff and to keep a safe working environment action must be taken as soon as it has been identified.

How to prevent subsidence?

Whilst not all subsidence can be prevented, a few measures can be taken to ensure the building is protected and prevent longer term difficulties. Tree management is a crucial but easy solution to preventing subsidence. Depending on a number of factors such as the ground surface material, tree species and the tree location can determine whether a building is at risk of subsidence. We would recommend seeking professional advice from a tree specialist before any work is undertaken. As well as this, it is also a good idea to prevent any leaks by ensuring that the gutters, plumbing and pipework are all maintained can be a quick solution to a bigger problem.

What to do if subsidence occurs?

While identifying a fix for subsidence isn’t quick or easy, if the damage is only minor and can be easily determined then repairs can usually be carried out immediately.

Research has shown that tree roots are the cause of the majority of subsidence cases. This is due to the roots drawing in the moisture from the ground surface beneath the building, this issue can worsen when there is a dry period. In certain situations, the tree can be removed and this may solve the problem, however this could lead to heave. A tree specialist should always be contacted to provide advice regarding this issue.

In a worst case scenario, the building may need to be underpinned. This is a disruptive procedure and can be expensive with costs reaching £50,000 is certain circumstances. The Royal Institute of Chartered Surveyors (RICS) estimate that less than 10% of properties that are found to have subsidence need underpinning.

In the case of the above and if damage is severe then the movement of the building may need to be monitored over a longer period. This is to help structural engineers determine a longer term solution to help solve the issue.

Regardless of the fix your insurer should be contacted straight away so that they can arrange a survey and help you come to the right solution.

DISCLAIMER: This article is for general information only and not intended as advice. Each project has its own set of unique circumstances, all potential issues should be investigated by a surveyor on a case by case basis before making any decision.

Business location and premises are vital factors of any commercial operation, and one of the key decisions business owners have to make is whether to rent the property or invest in purchasing the freehold. At Bradley-Mason LLP, our experienced team of Chartered Building Surveyors are on hand to provide commercial building surveys and a full range of property services across many sectors to help our clients make the right decision.

Buying a commercial property can have its advantages, though these may arguably be greater for businesses that have been established for a few years. A lease or rental agreement is often a simpler arrangement and, although it constitutes a financial liability, the lower set up costs may make this more attractive for smaller companies. Let’s take a closer look.

Renting business premises

Recent start-ups and SMEs may find it harder to predict cashflow, meaning a shorter rental agreement or a flexible lease may be the best option to secure premises. The ideal agreement is one where the responsibility for repairs and renewals remains with the landlord. That way, the tenant’s dilapidations liabilities are kept to a minimum and the risk of being faced with large, unexpected bills at the end of the term is substantially reduced.

Bradley-Mason LLP can help with recording the property’s condition at the start of the term via a Schedule of Condition and we are proud to be one of the leading Dilapidation Survey specialists in the UK, with an experienced team available to advise both landlords and tenants.

The process of moving into rented premises is usually fairly straightforward, making a business relocation quicker and easier than mortgaging a commercial property. What’s more, there is no need to tie up large sums for a mortgage deposit to secure the property, and any decrease in property value won’t affect the balance sheet.

However, the pros must be weighed up against the cons, which can be significant, and include the following key considerations:

While the business will be sheltered from any fall in property values, it won’t benefit from any capital uplift either. The rent you pay will never offer you a return. In addition, rent increases can be both steep and unexpected, and they may be entirely out of your control. While there is always the option to up sticks and relocate if no acceptable solution can be negotiated with the landlord regarding rent increases or lease renewals, this is likely to be a highly inconvenient and costly pathway for the business.

Buying business premises

When it comes to investing in commercial property, lenders may exercise extreme caution when dealing with businesses that are not well established. Assuming a mortgage offer is made at all, it is highly likely that a larger deposit will be required and premium interest rates charged, as a way to mitigate the perceived lending risk. In any event, a deposit of 25-30% of the purchase price is not uncommon. Add to that stamp duty, legal fees and valuation fees and the upfront outlay may be substantial.

Variable mortgage rates can mean a sudden increase in payments without any protection. And, of course, we all know that property prices can go up as well as down. The worst case scenario is that you could find yourself in negative equity.

That said, buying the freehold does have some clear advantages, including the following points:

If the property increases in value, so does the value of your investment asset. Gone are the risks of unpalatable rent increases and periodic lease negotiations. Mortgages can be fixed for up to 10 years, enabling smoother cashflow projections than are possible if you are a tenant. What’s more, mortgage interest payments can be offset against your net profits, making your investment tax deductible.

As a freeholder, you can make alterations to the property as you wish (subject to planning regulations). At Bradley-Mason LLP, we have a dedicated project management team to advise on all aspects of a scheme, from the feasibility stage to the finished build. You can also sub-let part of the building without issue, which is usually not permitted when you are renting premises.

Prime commercial spaces tend to come with long leases of 15+ years, which is a long-term commitment that may not work for your business, especially if there is no workable break clause. As a freehold owner you have much greater flexibility and can choose to sell whenever you decide.

Contact us

Each business has its own unique set of requirements, which makes the decision to rent or buy entirely dependant on your individual circumstances. At Bradley-Mason LLP, our expert team of Commercial Chartered Surveyors and Building Consultants can provide valuable advice and guidance to businesses of all sizes and across all sectors. Why not contact the team and discuss your property requirements to see how we can help?

DISCLAIMER: This article is for general information only and not intended as advice. Each project has its own set of unique circumstances, all potential issues should be investigated by a surveyor on a case by case basis before making any decision.