RESIDENTIAL BUILDING SURVEYS

BUYING A HOME OR OTHER RESIDENTIAL PROPERTY

The acquisition, sale or extension/alteration of a property, whilst exciting and challenging, is one of the biggest financial commitments you can make.

Property costs are substantial and there are pitfalls with serious consequences. It pays for to obtain professional advice from an expert with your interests at heart who really know what they are talking about.

A selling agent has a responsibility to and a contract with the client and not to the buyer.

Using our services you are assured that:

• We will act in your interest.
• We have proper professional indemnity insurance (£10,000,000.00 for each and every claim).
• We are tightly regulated and have strict codes of conduct via the RICS and are obliged to keep up to date in our skills and knowledge throughout our careers so that you can rely on our expertise.
• We have implemented and follow a proper complaints procedure that is in turn regulated by the RICS.
• Using our services as RICS members offers real peace of mind.

Buying a property can be a difficult and complicated process - we believe an important part is the survey. As this is probably the largest purchase you may make, commissioning a survey makes good sense - and might save you thousands of pounds for repairs.


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Surveys

Confusion often arises about the differences between the alternate types of survey available and even between a survey and a valuation. A building survey by our surveyors will inform you and give you confidence and could save you money. The survey is like a health check on the property. The report should be carefully considered before signing a binding contract (or making an offer in Scotland). If structural problems are found, you may wish to try to renegotiate the price or not purchase the property.

WHICH SURVEY ?

What types of survey are there?

There are two main types:

1. Homebuyer’s Survey and Valuation (HSV, HBSV, or Homebuyer’s Report)
2. Building Survey.

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What is an HSV?

This is a service carried out to a standard format defined by RICS, primarily designed for conventional properties in reasonable condition built within the last 150 years. It is not suitable for properties needing renovation, alterations, or extension.

What does an HSV cover?

• General condition.
• Major faults that may affect the value, in accessible parts of the property.
• Urgent matters that need investigation or assessment prior to exchanging contracts (or making an offer in Scotland).
• Recommendations for further specialist inspections.
• Testing for damp.
• Comments on timber decay, including woodworm or rot.
• Comments on the existence and condition of damp-proofing, insulation and drainage.
• The recommended costs of reconstructing a building in the event of damage for insurance purposes (not the same as the property's market value).
• The property's value on the open market.
  
  
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Choosing Between Surveys

Standard Terms of Engagement

Description of the HOMEBUYER Service

What is a building survey?

This comprehensive inspection is suitable for all properties, especially listed buildings, older properties, any building constructed in an unusual way, properties you plan to renovate or alter or which have been extensively altered. It does not include a valuation, although one can be provided separately.

What does a building survey cover?

A building survey covers these elements:

• Major and minor faults.
• The implications and estimated repair costs of any possible faults.
• Results of any testing of walls for dampness.
• Comments on damage to timbers, including woodworm or rot.
• Comments on the existence and condition of damp-proofing, insulation and drainage.
• Extensive technical information on the construction of the property and details about materials used.
• Information on the location.
• Recommendations for any further special inspections.
  
  
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What does a survey (either a building survey or HSV) not cover?

The surveyor will not lift carpets or take other steps which may cause damage to the vendor's property, shift furniture, test drains, wiring or water supply (but may comment on their condition). He will not inspect areas that are difficult to access, but will use a ladder to inspect roofs up to 3m in height.

Which survey is right for my property? Click Here

Mortgages

Apart from cash buyers (rare but not unheard of), you'll need a mortgage to buy a home. A mortgage is a loan secured on your property. There's a vast range of different ones available from many lenders. Mortgage rates vary too, so it's worth shopping around to get the best deal you can and take appropriate advice.

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Can you afford it?

Loan amounts are based on your income, the lender or broker can help you work out how much you can afford to spend on a property. Many lenders will give you an 'offer in principle', or verify the amount they will lend. It's useful to get this before you start looking for a home. Remember there are other expenses such as legal fees and removal costs. Budget for these:

Moving costs

• Deposit - 5-10% of the property value. Large mortgages may require a mortgage guarantee premium .
• Mortgage repayments and lender charges.
• Building survey or Homebuyer’s Valuation and Survey.
• Solicitor's fees, including searches, Land Registry (registry of deeds sometimes in Northern Ireland) and stamp duty.
• Removal costs.
• Possible reconnection costs for phone, gas, electricity and water
• Re-directing post.
  
  
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Monthly costs

• Mortgage
• Buildings and contents insurance
• Council tax
• Water rates
• Electricity and gas
• Phone and internet
• Ongoing repairs and decoration

Choosing your property

Consider the kind of property you want, such as semi-detached, terrace, or flat - then think about a few questions whenever you see a property:

• Can you really afford it?
• Is it near the transport links, schools or facilities you need?
• Do you like the area?
• Is it big enough?
• How old is it?
• Does it have enough outdoor space, such as gardens and garages?
• Is it freehold or leasehold?
• How easy will it be to sell?
  
  
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New properties

New properties can offer some advantages:

• Lower maintenance.
• Fitted kitchens, bathrooms and flooring are often included in the asking price.
• Home exchange schemes and deals on moving costs.
• Building regulations for new properties set high standards of insulation, which means your home should be more energy efficient and less expensive to run.
• Most new homes are covered by a National House Building Council (NHBC) Buildmark or equivalent certificate. This provides a 10 year guarantee, but it's not comprehensive, so don't assume it covers everything.
  
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Things to keep in mind

New houses often sell at a premium because of the included extras. It may take a few years for the price of a new property to move into line with the local property market.

Make sure your solicitor checks the property:

• Has proper planning permission and is correctly built on its allocated plot.
• Hasn't been built on contaminated or filled land - or if it has, you have valid certificates ensuring the land has been properly treated first. This is crucial for building insurance.

The builder should give you:

• Proper guarantees, such as NHBC Buildmark or similar certificates.
• Test certificates and user guides for any electrical, gas or built-in appliances.
• The final certificate from the local authority Building Inspector.
• Confirmation the property's energy efficiency matches the SAP (Standard Assessment Procedure) rating provided to the local authority.
  
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Non-traditional housing

Take care with pre-fabricated buildings. Standards have been poor in the past.

Older properties and those needing work

For all older properties we strongly advise commissioning a building survey first.

Our surveyors will find out if there are any hidden structural problems and will provide you with enough information to buy the property with knowledge of the principal problems or where further investigations are needed.

If you intend to renovate, you must check building regulations carefully. We can help ensure this is done accurately and professionally. Significant building repairs could need permission from your local authority building regulations department. Make sure you are properly advised of the cost of repairs and decide whether the property is still worth renovating.

Listed buildings

If the property is a listed building, or in a conservation area, any work you do on it may be restricted, and have to follow certain guidelines. The scope for any structural change could be extremely limited and you'll need to discuss any proposals with your local planning authority. You may also have to get consent from English Heritage (or Welsh Heritage/CADW) before work can begin.

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Buying at auction

At auction you exchange contracts on fall of the hammer - you'll be legally bound to the sale and can't back out. You should undertake a survey and valuation of the property before you buy.

Specialist advice from our Surveyors

We can help you with:

• Property extensions - contacting your local authority for permission to carry out the work, and advising on any likely restrictions and costs.
• Re-planning property - advising you how to demolish or erect structural walls and other building elements.
• Any work affecting boundary or party walls with your neighbours.
• Safety features, including means of escape.
  
  
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Types of ownership

There are four types of ownership or 'tenure' for property:

Freehold

If you buy a property freehold, it means you have full ownership of the property until you decide to sell it. Freehold properties are usually houses with gardens

Leasehold

If you buy a leasehold property, it means you have part ownership and the right to live there for a fixed time only - usually either 99 or 125 years (999 years or longer in Northern Ireland). Leasehold properties are generally flats and maisonettes. A landlord owns the freehold of the building, but doesn't have access to your flat unless invited.

The value of a lease decreases with time, but you can usually extend your lease or buy a new one. Many building societies and banks may have restrictions on granting mortgages where leases are below 70 years. We can advise on the cost of this.

You'll also probably have to pay ground rent on a leasehold property, and, if it's a flat or maisonette, you may have to pay a service charge to cover repairs and cleaning of shared areas. Before you buy, get your solicitor to check:

• How much these extra charges are.
• Whether you have to pay them in advance.
• If a management company is responsible for collecting payment.
• Whether building maintenance is managed by the freeholder.
• Any future costs, such as re-roofing, exterior redecoration, replacement of lifts or communal heating boilers.

A survey of a leasehold flat or maisonette will tell you who has responsibility for repairs and maintenance.


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Commonhold

This is new and still unusual. Leaseholders have the right to convert from leasehold to commonhold if they buy out the landlord, in both new and existing buildings. Commonhold provides a different management structure for blocks of flats and other interdependent buildings with shared services and common areas. Please note that commonhold does not exist in Northern Ireland, but leaseholders have a right to buy out their ground rent.

Shared ownership

Housing associations offer shared ownership as a part-buy part-rent way to own a property. You pay a mixture of mortgage and subsidised rent, making the homes affordable for those on or below average incomes. If you start to earn more, you can increase your shares in your home, and have the option of owning the property outright.

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Viewing a property

View a property several times and at different times of the day. This will give you a good idea of what you are buying. Location is very important, check the area carefully and remember local amenities. Consider these:

• Nearby main roads, or pubs, clubs or restaurants - think convenience and noise.
• Nearby train/underground lines - airport flight paths.
• General feel of the locality - does it seem safe?
• Light: morning/afternoon; shadows?
• Condition and maintenance?
• Age.
• Garden size.
• Condition of neighbouring properties.

On the inside, check to see whether:

• Is updating needed - how much?
• Does everything work, e.g. lights, taps, plugs and windows?
• Are the rooms big enough - can you fit your furniture in the rooms and pass them through doors?
• Are fixtures and fittings included?
• Views.
  
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Surveys

Surveys are important.

A survey could potentially save you thousands of pounds in costly repair bills in the future. They are recommended by the Consumers' Association, the Council of Mortgage Lenders and most solicitors. You should not just to rely on a mortgage valuation. Here's why:

Mortgage valuation

A valuation for a mortgage lender is to work out how much the property is worth so they can decide whether to give you a mortgage or not. The Valuer is only concerned with problems that might affect the security of the loan and carried out a limited inspection of about 30 to 40 minutes.

Gazumping

This is when the seller accepts your offer - then later accepts a higher offer from someone else.

Gazundering

This is when a buyer offers a lower price than they originally offered just before contracts are exchanged - hoping the seller will accept it rather than lose the sale.

The seller has ultimate responsibility for accepting another offer, not the estate agent. It's important to know your rights before you buy or sell a property.

Here are two main pieces of legislation affecting estate agents.
The Estate Agents Act 1979

By law, estate agents must:

• Give you their terms in writing, and say whether or not they are acting as multi, joint or sole agent.
• Explain their fees.
• Declare any personal or connected interests.
• Report any offers (unless the seller instructs otherwise) in writing quickly.
• Have separate accounts for deposits and client money.
• Not misrepresent any offers.
  

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The Property Misdescriptions Act 1991

Any information about the property must be accurate, whether it's written or verbal. It cannot be misleading or false, including any photographs or website information.

Moving costs checklist

Legal fees

Solicitors

These vary from place to place. It's worth asking if your solicitor will offer a no buy, no charge deal. When you buy, expect to pay the solicitor about 1% of the total agreed price - but check the range of services they'll provide for the fee. It's often worth choosing a solicitor on the recommendation of a friend or colleague - otherwise contact the Law Society on +44 (0)870 606 2555

Land Registry fee

This is a charge on the purchase of the property which is related to the buying price - your solicitor will have a list of charges.

Local authority searches

These are checks to make sure there's no reason why the sale can't go through, and can bring up problems such as roads planned near the property which might affect your decision to buy. Fees vary depending on the property location.

Other searches

These are to check on things like mineral rights, flooding, subsidence, landfill sites and pollution in the area. Homecheck provides much of this information free of charge.

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Mortgage lender charges

Valuation fee

This is usually included in the mortgage arrangement charges.

Mortgage arrangement fee

This varies from one lender to another, especially if you are taking out a fixed rate mortgage.

Mortgage indemnity policy

This is a one-off charge lenders make in case they have to repossess your property and sell it at a loss. It's approximately 8% of the difference between your loan and what the lender thinks the future price of the property might be - and you only pay it if your loan is for a high percentage (between 95-100%) of the purchase cost of the property.

Mortgage redemption charge

You only pay this if you change lenders and break the terms of the mortgage - and it usually only applies to fixed rate mortgages.

Bridging loan

If you complete the sale on your new property before you sell the one you already own, you may have to take out a bridging loan. There are two types - the closed loan and the open loan. With a closed loan you know in advance when you can repay it. With an open loan, there's no set repayment date and it carries a higher risk - so it's more expensive. An alternative may be taking out a flexible short-term loan from your bank.

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Survey

Keep in mind when you buy a home, you want independent advice, giving you the detail you need. A valuation from a mortgage lender may be free, but it only really tells you whether the house is worth the money they're prepared to lend you. A survey will tell you a great deal more, and could save you thousands in the long run - especially in older properties, or when you want to make alterations.

We will provide a competitive quote and a prompt service.

Estate Agent's fees

These are likely to be between 1-3% of the sale price plus VAT - charges vary, so get a range of agents to quote. Sole agency fees are likely to be less than multiple agencies.

Stamp duty

This is a tax on buying property for on the price you pay - here 's a guide:

£125,000 - £250,000 the current rate is 1%
£250,000 - £500,000 the current rate is 3%
Over £500,000 the rate is current 4%

For more information, call the Inland Revenue on +44 (0)845 603 0135

Buildings insurance

From the moment you exchange contracts, you need building insurance on your new property. Insurance rates vary between companies, so it's worth getting quotes from several different insurers - and make sure you know exactly what's covered in the policy.

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Services

You don't usually have to pay to have gas, electricity or water reconnected, but there may be a charge to reconnect the phone.

Moving expenses

The cost of moving varies according to how much stuff you have, how difficult it is to pack, how far you're moving and the time of year. Shop around for the best deal - and remember it's worth checking to see if the quote includes insurance.

Storage

If you're not moving straight into a new home, you may have to consider storage. The costs for this vary according to the quantity of stuff involved - as a rough guide, a two-bedroom house will probably fill up to four containers, and a three-bed house can fill six.

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