Have you heard of “caveat emptor,” or “buyer beware”? Basically, if you discover an issue with a property after purchasing it, you can’t take it back. It’s important to do your homework before buying by hiring professionals. Start with buyer’s agent to guide you, a solicitor to protect your legal interests, and a surveyor to check for any hidden problems.
Some issues might even help you negotiate a better price, as you can assess the risks, get repair quotes, and factor them into the cost. Knowing what to look for when viewing a property will help you make better decisions and save time.
Here are five important things to check for when buying a property to avoid unexpected costs or problems getting a mortgage:
1. Structural Issues
Look for signs of damp, cracks in walls, or uneven floors. Structural problems can cost tens of thousands of pounds to repair. Consider hiring a surveyor for a full structural survey, especially for older or higher-value properties.
Mortgage Issues: Lenders are cautious about properties with structural defects and may require repairs before approving a loan.
Surveyor Challenges: Structural problems like damp, subsidence, or cracks in walls are often flagged during surveys, potentially delaying the process.
Potential Damage: Left unaddressed, structural issues can worsen over time, leading to major damage such as foundation instability or collapsed walls.
Remedial Costs: Repairs can range from minor fixes to tens of thousands of pounds, particularly for extensive structural work.
2. Leasehold Concerns (if applicable)
For leasehold properties, check the length of the lease. Leases below 80 years can make it difficult to get a mortgage and may require costly extension fees. Review the ground rent and service charges; escalating costs can make the property unattractive to future buyers.
- Mortgage Issues: Properties with short leases or excessive ground rents may be deemed unfit for a mortgage by some lenders.
- Surveyor Challenges: Surveyors can raise concerns over unreasonable terms or service charges in lease agreements.
- Potential Damage: Poorly managed leasehold properties can deteriorate due to lack of maintenance, affecting the property’s condition and resale value.
- Remedial Costs: Extending leases, negotiating with freeholders, or addressing shared property maintenance can be very costly.
3. Flood Risk and Environmental Hazards
Verify if the property is in a floodplain or at risk of subsidence using a flood risk report. High flood risk can result in higher insurance premiums and some lenders refusing mortgages. These checks are carried out by your solicitor during the conveyancing but will not be flagged until weeks or months into the process. You can look online to find out any floor risks prior to putting an offer forward.
Mortgage Issues: High flood risk or subsidence potential may deter lenders or result in higher interest rates.
Surveyor Challenges: Floodplain or subsidence issues are often highlighted during surveys, requiring additional checks and reports.
Potential Damage: Flooding can destroy interiors, weaken foundations, and lead to mold growth, while subsidence can cause structural instability.
Remedial Costs: Installing flood defences, repairing water damage, or addressing subsidence can cost thousands of pounds.
4. Planning Restrictions or Disputes
Check for any planning restrictions or unresolved disputes related to the property or surrounding area. Issues with covenants or local regulations may limit renovations or reduce resale value.
- Mortgage Issues: Properties with planning disputes or restrictive covenants may be deemed high-risk by lenders.
- Surveyor Challenges: Surveyors may highlight issues with planning approvals or non-compliance with local building regulations.
- Potential Damage: Unauthorized developments could result in enforcement action, requiring demolition or changes that compromise the property’s integrity.
- Remedial Costs: Resolving disputes or obtaining retrospective planning permission can be expensive and time-consuming.
5. Unapproved Alterations or Extensions
Ensure all renovations, extensions, or conversions have the appropriate planning permission and building regulation approval. Mortgage lenders may refuse loans on properties with unapproved work, and you could face costs to rectify issues post-purchase.
- Mortgage Issues: Unapproved modifications can lead to mortgage refusals or requests for rectification before funding is approved.
- Surveyor Challenges: Surveyors often highlight unapproved alterations during property assessments, causing delays and additional inspections.
- Potential Damage: Poorly executed or unauthorized work can compromise structural safety, insulation, or water-tightness.
- Remedial Costs: Bringing unapproved changes up to code, legalizing alterations, or reversing them can result in significant costs.
6. Spray Foam Insulation in Lofts
Spray foam insulation in lofts is an increasingly common feature, but it can raise significant concerns for property buyers, particularly regarding mortgages. Spray foam insulation has been used as early as the 1970’s without being picked, but now surveyors check all properties especially when carrying out a valuation survey for a lender.
- Mortgage Issues: Some lenders may refuse to offer mortgages on properties with spray foam insulation in the loft due to concerns over its impact on the roof structure and long-term durability.
- Potential Damage: If improperly installed, spray foam can trap moisture, leading to wood rot and compromising the structural integrity of the roof.
- Surveyor Challenges: Surveyors often flag properties with spray foam insulation because it can obscure the condition of the roof timbers, making it difficult to assess damage.
- Removal Costs: If it needs to be removed to secure a mortgage or repair structural issues, costs can run into thousands of pounds.
In Conclusion
Buying a property, particularly one in the higher price brackets, is a significant investment that comes with potential risks and challenges. From structural issues to legal complexities like leasehold terms, unapproved alterations, or environmental hazards, any oversight can lead to unexpected costs, delays, or even the inability to secure a mortgage.
This is why seeking professional help is absolutely vital. Engaging a qualified surveyor ensures that potential problems are identified early, while a knowledgeable conveyancer or property solicitor can protect you from legal pitfalls. Their expertise can save you time, stress, and significant financial loss.
Equally important is working with a reputable estate agent who understands the nuances of the local property market. A skilled estate agent can help you identify properties that not only meet your needs but are also free from major risks. They can guide you through the process, provide accurate market valuations, and liaise effectively with other professionals to ensure a smooth transaction.
By working with my I come with over a decade of experience having seen all of the about multiple times in my career. This means you can navigate the property-buying process with confidence, making informed decisions that protect your investment and your peace of mind.
Paul Childs - A New Style of Estate Agency
Covering Berkshire, Hampshire and South Oxfordshire