Buying a flat, is a survey needed

[Ding Dong !]

I've just bought a flat on a buy to let basis and spoke to a surveyor about whether to get a survey done. He said no it wasn't necessary as it is a lease property so all exterior problems that arise ( roof, etc etc ) , it's the responsibility of the freeholder.

 

[Dean Deyn]

I've just bought a flat on a buy to let basis and spoke to a surveyor about whether to get a survey done. He said no it wasn't necessary as it is a lease property so all exterior problems that arise ( roof, etc etc ) , it's the responsibility of the freeholder.

But whenever I've been a leaseholder, my lease has stated that the freeholder can charge back the costs of building work to the leaseholders.

 

[Gazwag]

I've just bought a flat on a buy to let basis and spoke to a surveyor about whether to get a survey done. He said no it wasn't necessary as it is a lease property so all exterior problems that arise ( roof, etc etc ) , it's the responsibility of the freeholder.

You checked the lease properly to confirm this I assume. You must be paying massive ground rent then otherwise why would a freeholder prepare a lease where he was responsible for all exterior issues without any income to pay for it.

 

[SUA Seagull]

Just a bit of property advice needed.

Shingle jnr is buying a flat, top floor of a three story. Should he have a survey done at a cost of £600 odd. His solicitor has said she has a legal duty to advise yes, but off the record says its really not needed. Is it wise to get one done anyway?

1. If the flat is a newbuild

(a) he could probably get away without a full survey (there should be a builder’s warranty for the first 2 years (from date of sale) and NHBC cover for years 2-10 (from date of completion)) BUT

(b) it would be advisable to have a basic survey undertaken to spot any build flaws/defects and which may help you chip away at the price (to cover the survey cost).

2. If the flat is not new

(a) if it’s less than 10 years’ old, he should ask for any remaining builder’s warranty/NHBC cover to be assigned to him,

(b) he should have a full survey done,

(c) he should ask the managing agent for the block to advise if there have been any external problems (lifts/roof etc) which may have affected the block generally even if not his own flat specifically.

3. In all cases, he should ask

(a) for a copy of the current block insurance policy, to determine what cover is in place for the block and the common parts,

(b) what arrangements are in place for maintenance of the common parts and how they are funded?

(c) if there is a lift, is there a separate maintenance contract in place to cover breakdowns etc?

(d) are any major works planned to the common parts in the near future for which he will have to share part of the bill?

(e) Is the residents’ management company sufficiently funded to meet any anticipated common parts costs from budgeted service charge contributions and accrued reserves?

With flats, it's often the common parts as averse to one's own flat that give rise to the biggest costs (e.g. lift repairs, decorating, replacement of security systems or windows) so make sure you check those out too.

Good luck with that!

 

[stss30]

A survey is a must really in my experience, however, don't worry so much about some of the finer details listed in the report e.g woodworm risk as they are trying to cover themselves...

 

[Westdene Seagull]

As an ex-property developer I'd certainly recommend a survey BUT beware that surveyors will always report the worse possible scenario so don't look at the report without a small pinch of salt.

 

[shingle]

Thanks to all for taking the time to reply, much appreciated

 

[Whoislloydy]

Unless they are buying out right in cash, they have to. I don't think you will get a mortgage without a survey. but i could be wrong.

 

[Justice]

We are doing a ton of electrical tests on flats for sale at the moment as many lenders won't lend if the electrical installation isn't up to regulation, also post Grenfell they want to see a fully functioning communal fire alarm system which is down to the lease holder but may stop the mortgage going through.

 

[Sussexscots]

Personally I would have a survey done. It could highlight potential problems or likely future costs which should be factored into the purchase price. A good survey should also comment on the managing agents and the capitalisation of the maintenance funds.

If buying a leasehold flat - which most are - also pay close attention to the term remaining on the lease. If it is 85 years or less, ask if anything has been done about extending it. If 82 years or less, I would want to factor in a significant reduction in the purchase price because once the term remaining hits 80 years the cost of extending it will increase significantly because of what is known as marriage value. You can't apply to extend the lease until you have been resident for 2 years. UNLESS the previous leaseholder started the process. This is an area Estate Agents seem to pay little attention to but which can involve very significant expense.

 

[Uncle Spielberg]

Just a bit of property advice needed.

Shingle jnr is buying a flat, top floor of a three story. Should he have a survey done at a cost of £600 odd. His solicitor has said she has a legal duty to advise yes, but off the record says its really not needed. Is it wise to get one done anyway?

Survey seem high, if a mortgage is needed Nationwide and Santander give free surveys along with some others

 

[Uncle Spielberg]

I've just bought a flat on a buy to let basis and spoke to a surveyor about whether to get a survey done. He said no it wasn't necessary as it is a lease property so all exterior problems that arise ( roof, etc etc ) , it's the responsibility of the freeholder.

If a mortgage is being raised every lender will want a survey

 

[Bad Ash]

theres three levels of survey, cant recall the names.
1. valuation survey. cheaper, ~£200? mortgage lender will require this. checks there is a property and its worth approx the value claimed, about it.
2. medium survey. about 500-600 someone checks everything in the house but wont actually check anything properly (not a trained electrician, plumber, engineer or anything) and produces a report say thres electricity and water, no massive cracks signs of subsidence or anything, but doesnt know or certify the condition of anything.
3. full structrual survey. £1200+ an actual engineer checks everything, will tell you if theres been problems and likely repair costs.

last one you dont need for a flat (unless you can see that it might need further investigation), second is sensible reassurance of your opinion its sound property, first wont get a mortgage without.

I've twice had the medium survey (often called Homebuyer Survey, at least via Nationwide), and in both cases they were a complete waste of time and I won't be bothering with a third!

The impression I get is they walk round the house in 10 minutes and then send you a template report with only comments on extremely obvious visual observations that anyone could make. They basically won't commit to anything, every comment is written to cover their backs, and they end up recommending that you get in about 6 different experts to investigate further (e.g. electrician, gas engineer, structural engineer, asbestos specialist, tree surgeon, roofing specialist, drainage engineer, etc).

The best advice I've had is that if you have a friendly builder get them to have a look at it with you.