Coal Authority Searches and Their Implications
A Coal Authority search is a specialist property search that reveals whether a property is located within the zone of influence of past, present or future coal mining operations. It identifies whether there are recorded mine entries (shafts or adits) within 20 metres of the property, whether the property is in a zone where subsidence from underground workings is possible, and whether there are any current or planned surface hazard notices. This search is separate from a standard local authority search and must be ordered specifically for properties in coal mining areas.
Where a Coal Authority search returns a mining risk, lenders will require further information before proceeding. The most common question is whether the property has suffered any mining subsidence damage and, if so, whether any damage claims have been made and resolved under the statutory compensation scheme. Evidence that damage was properly remediated under the NBMS scheme, with a structural completion certificate, is generally sufficient for specialist lenders to proceed.
Properties in zones of influence from high-risk coal seams or near recorded mine entries may be subject to ongoing risk. Where the Coal Authority has issued a surface hazard notice or where there is evidence of unresolved ongoing movement, lending is significantly harder. In these cases, a specialist structural engineer's assessment is typically required before any lender will consider the application.
The National Benefit Mining Scheme and Structural Guarantees
The National Benefit Mining Scheme (NBMS) is the statutory scheme under which the Coal Authority (as successor to British Coal) accepts liability for subsidence damage caused by coal mining and provides remediation. Under the Coal Mining Subsidence Act 1991, the Coal Authority is responsible for making good damage caused to land and property by coal mining subsidence, either by carrying out repair works or by paying compensation to the property owner.
Where a property has been repaired under the NBMS scheme, the Coal Authority issues a completion notice confirming that the remediation has been accepted and completed. This documentation is vital for remortgaging purposes and should be kept with the property's title documents. Many specialist lenders will consider properties that have been repaired under the NBMS scheme, provided the completion notice is available and there is no evidence of ongoing movement or further subsidence claims.
Structural guarantees for mining subsidence repairs differ from standard underpinning guarantees in that they relate specifically to the risk of further movement from the same mining operations. Some specialist lenders require a structural engineer's certificate (rather than simply the NBMS completion notice) confirming that the property is currently stable and that the risk of further mining-related movement is low. Instructing a structural engineer who is familiar with coal field areas is important, as they will understand the specific subsidence patterns associated with different types of mining.
