Deciding whether to conduct a survey on a buy-to-let investment property can be highly beneficial. Factors such as property condition, financial analysis, risk mitigation, and insurance requirements should be considered when making this decision.
Property Condition: Conducting a building survey can provide valuable insights into the condition of the property. A professional surveyor can find any potential issues or maintenance requirements that may affect the property’s value or rental income. This information can help you make informed decisions about the buy-to-let property investment and plan for any necessary repairs or improvements.
Financial Analysis: A survey can assist in assessing the financial viability of the buy-to-let investment. It can help determine the investment property’s market value, rental potential, and potential return on investment. Understanding the property’s condition and investment property valuation can aid in negotiating a fair purchase price and rental rates.
Risk Mitigation: A thorough survey can help identify any structural or legal risks associated with the property. It can highlight issues such as subsidence, dampness, or legal complications that may change the property’s value, rental income, or future saleability. Identifying these risks beforehand can help you make an informed decision and potentially avoid costly surprises down the line.
Insurance and Lending Requirements: Some mortgage lenders or insurance providers may require a survey before approving a loan or providing coverage. Conducting a survey can fulfil these requirements and ensure compliance with the lender’s or insurer’s policies.
Conducting a survey on a buy-to-let investment property can provide valuable information about the property’s condition, financial feasibility, and potential risks. It is generally recommended to consider a professional survey as part of the due diligence process to make informed investment decisions and mitigate potential risks.
What is a Property Survey?
A property survey is useful in determining a property’s present status and condition as well as any issues you should be aware of. The survey is carried out by a surveyor, who examines the property for any problems. At the end of this, they will present a report to you with their findings, pointing out any issues or required repairs.
What are different types of a property survey?
The simplest report is a condition report, which shows any critical structural or legal issues that the buyer should be aware of. A homebuyer’s report will also test the same things, in addition to this, this report will also offer guidance on suggested repair and maintenance works and will also give you a market valuation. A building survey is the most comprehensive survey (and the most expensive) because it offers a more detailed analysis of the property’s condition and necessary repairs.
What to watch out for in your property survey
When buying a property, there are several crucial procedures that must be taken before buying a home to make sure it is suitable for your needs. Having a house survey is one of them. When you receive the results, what do you need to pay attention to? Here, we will go into detail about a few of the typical problems you may encounter on your house survey, and how you can go about handling them.
Common issues and how to handle them
Let’s look at some of the most common issues that can be met, and how to handle them.
Damp
We will start with this one as this seems to be the most common problem that can show on a house survey – especially in older houses. The best thing to do is to speak with a damp specialist, who will carry out a deeper specialist survey. They will then be able to give you a much better idea of the severity of the damp, and how to go about fixing it.
Roof issues
Roofing issues are another common problem, ranging from cracked tiles, faulty or blocked guttering to an unstable roof structure. This is unsurprising really, as roofs take the brunt of all the elements being on the exterior of a property. A few cracked tiles here and there can be easily replaced by a roofing professional, however, for more serious concerns, you should contact a specialist roofing contractor.
Structural movement
The problem of structural movement has the potential to be quite serious and prompt action should be carried out. Structural movement refers to a problem where the home’s physical structure is moving or slipping. Cracks in the walls and other indicators of structural degradation are key warning signs of this. In worst case scenarios, structural movement can result in falling walls. If the home survey shows any structural movement, you must seek advice from a specialist, as the cost of major repairs may be extremely expensive. This may even be the deal breaker as to whether you go ahead with the purchase of the property.
Electrical safety
The survey may show electrical issues within the property. These can show up as simple repairs or a complete rewire of the whole property. If this happens, you will need to contact a qualified electrician and they will more than likely carry out an Electrical Installation Condition Report.
Insulation
Another common problem often found in a house survey is insulation, or rather, lack of. Ample insulation should be provided in every home to lower heating costs and to safeguard the environment. Most properties come with an Energy Performance Certificate that details the level of thermal performance of the building. Your home survey may reveal information about areas where is missing. If so, get more information so that reparative action can be taken.
Invasive plants
If there one thing that you really don’t want to see come up on your house survey, it is this: Japanese knotweed. It is the most invasive plant and can harm homes and gardens. Due to its widespread nature, it can present problems for buyers, sellers, and mortgage lenders. If Japanese knotweed is found, professional assistance is needed. They will be able to offer advice on the best way to get rid of and manage the plant.
Drainage issues
For the security and structural integrity of your property, the drainage system on your land is essential. Water can accumulate and lead to dampness and rotting if your drainpipes are broken. If your house survey reveals information about malfunctioning drains, you should have a professional drainage company inspect the situation to decide whether you need to take immediate action.
After looking at some of the common issues, this is why we would always recommend that our clients undertake a building survey before spending hundreds of thousands of pounds on property investment, even though it is not required by law. The main advantage of a building survey is that it will ultimately save you money. Getting the property surveyed before you buy it may seem like an unnecessary (and needless) investment, but if you’re not diligent, you might easily find yourself paying more for repairs and damages further down the line. Don’t overlook this crucial step in your property investment journey.
