Maria Richards, Consultant for Setfords Solicitors’ Residential Property team explains what mundic block is and what reports you can obtain to ensure your property investment is protected.

Conveyancers are qualified and experienced to act in any property within England and Wales, however there are often quirks which can be found in one county and not another. You should always check that your conveyancer has the relevant knowledge to advise you correctly. With the advancement of technology, conveyancers have access to data supplied via their search providers which will flag up necessary searches such as coal mining, tin mining and brine/lime workings.

If you are purchasing a property in Cornwall (and some parts of Devon) and are obtaining a mortgage, mundic does not come up on the searches. However, it is likely the valuer will flag up the requirement for a mundic block test for any property which was constructed between 1900 and 1960. If you are not obtaining a mortgage, you may not be aware of this, and this is where a local conveyancer’s knowledge will be useful. A local surveyor will also raise this as part of their survey report.

Between 1900 to 1960 (and 1965 in some areas), mining waste materials were used to mass-produce concrete blocks which were subsequently used to build houses. The Local Authority purchased a lot of these blocks, and it can therefore be found in a lot of ex-Local Authority houses. Unfortunately, although these were a cost-effective solution at the time, mundic blocks are susceptible to crumbling and falling apart. They can affect the integrity of the structure of the property, rendering it unsafe to live in.

Mortgage lenders are, understandably, cautious when it comes to lending on a property constructed of mundic block. Therefore, they will almost always insist upon a test being carried out, alongside a report. This may be one test or a series, depending on the lender’s requirements. The test itself includes drilling into the building and taking core samples to analyse.

As a conveyancer acting for a purchaser, our first port of call will be to see if the seller has an existing report which can be assigned to you and your lender. However, this is only possible if the surveyor who conducted the report is still trading and willing to assign it. Changes to the rules governing mundic testing mean that many reports older than 6-10 years are not re-assigned. In the event that there is no existing report, or a new one has to be carried out, it is up for negotiation between the seller and the buyer as to who pays for the report. The cost is around £450 plus VAT, and sometimes the parties will agree to pay 50% each.

The result will provide a grade for the samples, and more than one test may be required.  The classes are A1, A2, A3, B, C1 and C2. Generally, if it has a Grade A, it will be acceptable for mortgage lending purposes. If the result is a grade B or C, it is not mortgageable and this has an immediate impact on the market value. Works can be done to remedy the problems.

Once repairs have been carried out, a Precast Reinforced Concrete (PRC) Certificate is issued by a fully qualified structural engineer confirming that the repair system has been successfully carried out.  If you are purchasing a property which has already had the repairs, your conveyancer will check the PRC Certificate and your lender will require sight of it before providing the funds.

If you are cash buyer, it is always recommended that you obtain the report to ensure that if you decide to mortgage the property or sell it to someone with a mortgage in the future you do not encounter any problems, as well as knowing you are safe in your property without any danger to your life.

It is also recommended that mundic reports are considered when inheriting property and distributing the estate as it can impact the value of the property and you could be paying too much inheritance tax if the valuation does not take this into account.