Auction houses for cheap property is an attractive proposition for those who are looking to build their property portfolio. Transparency is integral and never more so than from your building survey. It seems that this element of purchasing property has long since suffered from a vague and often misunderstood purpose. So what does this then means for the conscientious property developer.
The modern property developer and their legal and financial challenges
According to the Home Owners Alliance, only 20% of buyers think they need to get a survey no matter what the condition of age of property they are buying, is this ignorance or experience? As a property developer, you success will be in the finances, but that doesn’t mean you need to purchase a building survey report, but depending on your research and legal pack from the auction, you shouldn’t scrimp, if it meant protecting you from letting out he property safely.
What you’re paying for: An almost complete property picture
There are 3 surveys, all of which are not necessary and should not be confused with a mortgage lending valuation.
The type of survey option you decide to choose can hugely depend on the age of the property. Specifically, the most comprehensive building survey includes the following considerations:
– Analysis of the structural elements and overall condition of the property,
– A complete list of potential defects and advice as to how these can be repaired,
– Assessment of hidden areas such as the attic and under the floorboards,
– An estimate as to how costly any repairs would be (this is very often an add on service however).
What you are not paying for: A search for a killer
Many understandably presume that building surveys would include an investigation as to the risk of asbestos, after all, this substance was used to make many materials because of its incredible molecular bond. According to the Guardian, properties have a 50% chance of harbouring hidden asbestos. Without prior knowledge about the substance, it could result in removing the asbestos illegally. Asbestos was banned between 1985 and 1999 and therefore was present in properties even as recent as 1980’s.
Buying property should always be investigated for safety. As for asbestos, the list of uses is endless and to find out where the substance could be hiding, Malrod asbestos surveyors have included an investigations checklist in the standard building survey for property buyers.