Homebuyers Surveys...which do I need?

You probably have heard the term “survey” in regards to buying a property, but do you know which one is best for you?

There are a few different options that all vary in price and are all suitable for different types of properties. It is recommended to choose a survey based on the condition of the property, as opposed to looking at prices. Choosing a survey wisely can save you a fortune in the future, helping you avoid any nasty (and expensive!) surprises once moved in.

If the property is a new build, or in a good condition, you may wish to choose a RICs Condition Report. This identifies any risks or potential legal issues, as well as highlighting any urgent defects. This is set out in a very basic “traffic-light” system and gives no advice or valuation. It is the cheapest and generally only costs around £250.

A property that is in reasonable condition would benefit from a RICs Homebuyer Report. This reports back any structural problems, such as damp, as well as any other issues not visible inside or outside – however it does not look beyond the floorboards or behind the walls. Sometimes this type of survey offers a property valuation. This type of survey generally starts from £400.

A RICS Building Survey should be selected for an older or larger property, or if you’re planning major works. It is presented simply and clearly, in a 1,2,3 style, so you can easily identify the most serious issues. This report is very detailed and gives an in-depth look at the property’s condition, as well advising you with what to do with any defects or repairs. You will also receive advice sheets on how to deal with some common issues that are found, including consequences for ignoring such issues. Typically this sort of report costs between £400-£500.

The most comprehensive survey offered is the Full Structural survey and costs upwards of £600. It is suitable for all properties but particularly good for older homes that may need repairs. In most cases it is worth the money as it is so detailed however it does not normally include a valuation. The surveyor will generally give you their opinion on hidden defects that could be under the floorboards or behind the walls – however they cannot look.

Finally the most commonly used survey is the Mortgage Valuation survey. This is used to satisfy your mortgage lender that your desired property is worth the price you’re paying, or at least the amount they’re lending. This type of survey does exactly what it says on the tin – it’s a valuation. It won’t point out any issues or problems and is more for your lender than yourself. You will normally however need to pay for this, but the cost depends on the property price.  

Energy Performance Certificates - what's changed?

Do you know your properties energy efficiency rating? Chances are, the report was carried out prior to you buying the property. Up until now, the only legal requirement in regards to EPC’s was that you had to have one to sell or let your property; however new legislation has changed that and will affect Landlords in quite a dramatic way.

To be able to let your property (whether privately or through an agent) you must ensure the energy efficiency rating is at an ‘E’ or above. The regulations will come into force for new lets and renewals of tenancies with effect from 1st April 2018 and for all existing tenancies on 1st April 2020. It will be unlawful to rent a property which breaches the requirement for a minimum ‘E’ rating, unless there is an applicable exemption.

This is known as the Minimum Energy Efficiency Standards (MEES) and it applies to both residential and commercial properties.

If you discover your property has a rating below the MEES, I would recommend speaking to an energy assessor about what you can do to increase it, however here are a few ideas that may help:

·         Ensure your roof insulation is the correct depth

·         Replace any non-energy efficient bulbs/light fittings in the property

·         Install central heating if it does not have it already

·         Filling in cavity wall

·         Replace an old boiler with a new, more energy efficient one

·         Replace windows and doors/consider double glazing

Non-compliancy of the new legislation can result in financial penalties, your agent should have informed you about this already however if not, it is definitely worth asking them.

Why should I take out insurance?

What would you do if your property became uninhabitable due to a major incident? Many people assume their Landlord or Estate Agent will provide alternative accommodation should their rented property be fire damaged, water damaged etc however this is not the case.

It is common for a tenant to overlook taking out an insurance product to cover them as this is normally associated with buying a property, as well as this most tenants will assume most things that are important are covered by their Landlord.

It is definitely worth speaking to your current agent about what they can offer you in regards to Tenants Liability insurance – hair straighteners on the carpet, spilt drinks, children drawing on the walls – accidents can happen in anyone’s home and an insurance product such as this covers you should anything happen.

Obviously, you will normally have paid a Security Deposit when you first collected the keys, however this does not stretch very far in terms of repairs and should the damage stretch beyond this you could be taken to court for the rest of the cost of the damages – not to mention it is obviously preferable to receive your bond back in full!

How can I increase the rental value of my property?

The question on every landlord’s lips, new or experienced – how much can I get per month? How can I get more? 

We can sugar coat it and say we do it to give people a place to live, because it’s a hobby, it’s a project – but the bottom line is because it is an investment and the best investment requires the best return, to make it the best investment.

Something to consider when letting a property is the type of tenant you are attracting and who your target audience are. Every landlord would prefer a respectable single person or family, paying rent on time every month and looking after the property as if it was their own. This type of tenant is out there, however it is important to think about the quality of your property inside and out, when expecting a quality tenant.

A tenant is more likely to look after your property if damage would be completely obvious if it happened. For example, let’s imagine for a second there is a cupboard door slightly off its hinges in your kitchen – do you think a tenant would think twice if another was knocked and was hanging off? What about the carpets, if they have stains here and there – would a tenant care about spilling something? 

If your property is above a certain standard and the care and attention you have put in is apparent, you are sure to attract a better calibre of tenant that is willing to pay more per month, and much more likely to stay for a longer term meaning less re-letting fees, less void periods and much less refurbishment between tenants.