Tag Archives: surveyor

Property Research Tool Latest Articles

UK Property Research Tool

What you need to know and where to find the information

This Property Research Tool is for the benefit of all property buyers, landlords, tenants, owner occupiers and professional advisers associated with property.

Thanks to business sponsors and Property118 Members for their incredibly generous donations making the development of this Property Research Tool.

Property Research generally begins online

Far too many people fall into the trap of not doing proper online research, they see a property they fall in love with or meet a sales person they trust and the deal is done. For those of us who have learned our lessons the hard way, it still takes a long time to wade though websites to complete thourogh due diligence. The really annoying part for me was finding each website individually and then having to enter the same postcode into each one over and over again to find the right pages. For these reasons I wanted to have a system built as a convenient Aide-mémoire (check-list) for every internet user to be able to use and to provide access to to the websites containing vital information with the minimum number of clicks.

Essentially the Property Research to is a pop up page, called a modal, which consolidates key information used by landlords and other property purchasers to assess properties. Any website can incorporate this technology free of charge. The functionality works best with Google Chrome and Safari internet browsers.

The only data input for users is the Post Code of the area. The key benefit is the ability to access all information required to complete desktop due diligence without having to remember visit multiple websites, thus saving considerable time and effort. The information is called from several websites which provide insight into the location being searched.

Enough of me trying to explain what it is, why not see for yourself?

If you run a website yourself why not write a review and grab the embed code to install the Property Research Tool functionality on your own website? We even have a widget which creates a “call to action” button (like the one below) which you can size to your requirements.

Want to learn even more?

My buy to let property investment strategy is documented and constantly updated in the Advice section of this website. To get back to the main menu >>>

Landlords Buy to Let Property Investment Strategy

Development finance using Equity instead of Liquid Cash Commercial Finance, Latest Articles

I have an example of how the commercial market is changing. Some lenders are now taking a risked based view of using second charges over equity as security for development finance rather than only relying on pure cash being put up as collateral by investors.

Example of a recently completed case, as follows:

A builder/developer was looking to buy a property to renovate for a long term investment and once complete take out a Buy to Let mortgage based on its new and improved value (and if possible have additional funds returned too).

He was very limited in the cash deposit he had, as all his money is tied up in other properties which he lets out, however he had a good level of equity in his main residence, which has a value of £600,000 and an outstanding mortgage with the Halifax for £300,000

He found a property which needed heavy renovation including a full new and extended kitchen, and also a new bathroom. The purchase price was £150,000 in its current state and the cost of renovation was £40,000 (as he would be able to do it himself). Therefore, the total borrowing required was £190,000

He ideally wanted to borrow 100% of the purchase price and 100% of the renovation costs using both properties as security, including using the equity in his home as additional security.

Once renovated he required a quick solution in changing the bridging loan into a Buy to Let mortgage

He was able to borrow 75% of the new purchase – which gave him £112.5k on a bridging rate of 1.15% for 3 months. A very keen rate for refurbishment deals.

The short fall of £37.5k towards the purchase and the £40k needed for the renovation works was raised by adding in the additional security via a 2nd charge on the client’s main residence by the same Bridging company.

He was offered a 2nd charge bridge on his residential property up to 70% LTV (although he did not require as much as that) including his existing main residence mortgage at a cost of 1.4% per month. This meant he could raise up to up to a max £120k from this property, more than enough to raise the required 100% of the purchase together with 100% of the renovation costs.

The valuer was booked to attend the property within 72 hours. In the meantime the shopping list of requirements was quickly collated and submitted.

Working closely with a solicitor that understood the speed required for a bridging loan, the deal was completed within a few weeks enabling him to ‘do up’ his new property, increasing the value to £300k.

3 months later he was then able to change the bridging loan product to the lenders the same lenders Buy to Let product at 4.10%, releasing 75% of its new improved (and surveyor agreed) value. This released £225,000 back to the client, enough to clear the bridging loans and put some money back into his cash flow.

Summary of Deal:

Liquid Cash available £0
Purchase Price £150,000
Costs £40,000
Gross Development Value £300,000
First Charge Bridge £112,000 at 75% LTV
Second Charge Bridge on Main residence £77,500 at 70% LTV
BTL on completion of works £225,000
Liquid cash released £35,500

The set up costs not including interest were:

1st Charge on property of £150k = valuation £330
2nd Charge on residential property of £600k = valuation £540
Legal fees = £780
Total = £1,650

Buy to Let 3 months later:

Property now worth £300k = valuation £360
Legal fees = £540
Total = £900

Could this be of interest to you?

If so, check our my member profile, linked from my author profile at the top of this article.

Online advice from building surveyors Advice, Latest Articles, UK Property Forum for Buy to Let Landlords

I run a website providing online advice from building surveyors.

The advice is given by experienced RICS qualified chartered building surveyors.

I would welcome feedback.

The website is www.askasurveyor.co.uk

Although there is a cost of £40 per question answered, we do not charge if we cannot answer and invariably we save clients considerably more than the cost of the question. For example, it often pays to persuade tenants to use it, especially if they keep complaining about issues such condensation and do not believe the problem is their lifestyle.

Please have a look!

Constructive feedback will be much appreciated.

Many thanks

Robert Desbruslais BSc MRICS

Who will lend on a property with no bathroom? Latest Articles, UK Property Forum for Buy to Let Landlords

I’ve got my heart set on a property going to auction, which has no bathroom.

I can get a mortgage to easily cover the cost of the property. But the problem being, it’s got no bathroom.

Went to Lloyds, and delved into what their surveyors will pass an approval on, and basically saved £300 on a survey, by finding out prior to ordering a survey, that they won’t pass a mortgage unless it has a kitchen, and bathroom (in no matter what condition though).

Would someone be kind enough to enlighten me as to what products are out there, that would lend on such a property?

I believe The Mortgage Works have just pulled a product which would have covered this?

Cheers

David

Block of flats falling apart – what can we do? Latest Articles, UK Property Forum for Buy to Let Landlords

Well, not quite but close…

I own a leasehold flat in an 18 unit block in Halifax. All units are owned by investors. About a year ago we took over the management, using the RTM Process. Myself and one of the other owners are now directors of the Right To Manage (RTM) company and we have a managing agent in place. The freehold is owned by a third party.

On the 19/2/2013 the building was inspected by an independent surveyor who wrote a report. The reason for the inspection is the poor condition of the concrete walkways. We bring you here the relevant sections of the report so that you can get an understanding of the situation.

Description & Background:

KC comprises a residential complex of flats constructed over three levels and provides accommodation within 18 units. We would estimate that the complex is 50-60 years old and is constructed of cavity brickwork external walls with a pitched clay and concrete tile covered roof. The intermediate floors, balconies and external access stairs are constructed of reinforced concrete, which appears to be case in situ.

Brief:

We understand that render has been reported as spalling from the underside of the external walkways which serve the first and second floor levels of the building. The purpose of the inspection was to determine the cause of the defect, set out an appropriate course of action for further investigation and propose longer term remedial measures.
We have also been requested to make any relevant general observations with regard to the premises and highlight matters of particular health and safety risk.

Inspection

The building was inspected by Bond Bryan Building Surveying Ltd on 19th February 2013.

Executive Summary

A brief visual inspection of the property known as KC Halifax was undertaken by Bond Bryan Building Surveying.
The purpose of the inspection was to investigate and comment upon spalling render to the underside of concrete walkways at the rear of the property and other items of disrepair identified during the inspection.

In all situations further investigation and testing of the concrete is necessary however we are able to comment on the overall condition and make recommendations as to the most appropriate courses of action.

We would describe the condition of the external walkways as very poor. The spalling of the cement render coating to the soffits of the walkways is attributable to the significant deterioration of the reinforced concrete.

The reinforcement bars embedded within the concrete slabs have corroded significantly. The bars have expanded through corrosion which has caused cracking and spalling of the concrete.

In our opinion the concrete slabs of the walkways have deteriorated beyond economic repair and it is our recommendation that they are removed and replaced with a steelwork structure.

Our challenge is:

We are told by the managing agent that if we don’t take the next step – which is have the concrete tested – they wouldn’t feel uncomfortable managing the site.

As far as we are concerned, no-one knows how long the concrete will last. It could be 5-10-20-30 years. All a test would supply us is with the state of the concrete at the moment and an opinion as to how long it would last.

Myself and the other director went to inspect the site with an experienced builder who explained that he would be able to make good the exposed areas of the walkways so that there is no danger of falling concrete.

We would much rather make good the exposed areas than going through the test which will, possibly, force us to go through a very very expensive repair process (the report speaks of more than £300K to replace the walkways with a steel structure). The flats are currently worth £40K each and there is no way any of the owners could afford to pay more than £16,000 for such a job.

Our questions are:

1. What can we do in this situation which would protect us as directors from being negligent while finding a practical and cost effective solution to this problem?
2. What are we required to do by law?
3. What is the responsibility and obligation of the freeholder in this situation?

We would appreciate any information or advice you may have.

Many thanks

Nitzan

Rics want a 5% annual price rise cap House Prices, Latest Articles

The Royal Institution of Chartered Surveyors (Rics) want a 5% annual price rise cap for houses that triggers restrictions on mortgage income multipliers or maximum Loan to Value.

Although Rics did say that sellers under their plans would not face a limit on how much they could sell their homes for.

Joshua Miller, senior economist at Rics, wants to halt a debt-fuelled house price advance and said “the Bank of England now has the ability to take the froth out of future housing market booms, without having to resort to interest rate increases. Capping price growth at, say, 5% is one way of doing this.”

“This cap would send a clear and simple statement to the public and the banking sector, managing expectations as to how much future house prices are going to rise. We believe firmly anchored house price expectations would limit excessive risk taking and, as a result, limit an unsustainable rise in debt.”

Sir Howard Davies, a former deputy governor of the Bank, does not think this kind of cap would work and said “The problem is that we are not building enough homes.”

This is a good point as it is clearly the lack of supply that is pushing up house prices especially in the capital rather than increased demand because we are all better off now than before the recession started.

Then there is the question of regional differences. Do you smother any potential housing market recovery in areas outside London that have not seen the same rises and if not how do you tell an National high street bank to have different criteria and systems in different parts of the country.

This would be clearly unrealistic, unworkable and unpalatable for lenders.

The Housing Market is very mature and almost free to work on the pure economic principles of prices being dictated by supply and demand. It is therefore very difficult to control directly without looking at all the factors that influence it.

Rics may be naive in thinking simplistic one sided controls like this are the answer to the problems of a very complex housing market and its demographic and social issues.

Old leases since 1945 Latest Articles, UK Property Forum for Buy to Let Landlords

I am a landlord of an old lease from the 1960s for a Victorian detached property in Surrey – My tenant who was long term since the 60s recently died. His daughter who cared for him took on the lease – The problem is for such a little rent – they have not complied with the lease and its clauses – which are different from the leases we now have –

I am responsible in the lease for external repairs, they are responsible for the plumbing electrics, internal redecoration condition – surveyors fees –

The trouble is they have not done anything in the last 50 years! the windows do not open due to moss (sash windows), the walls ceilings and carpets are still the same and decor is from the 60s- On the subject of paint although they have said they did paint it- they provided me with nothing when I asked for receipts! – I have thought about sampling and testing the paint to establish the age! I recently had surveyors in who assessed the condition – they have advised me to see a specialist solicitor to advise me on the terms of the lease which are unusual (remember it is from the 60’s) I am really stuck on how I can bring the property back into compliance of this lease? how should I move forward ? the tenants are not helping at all!

Also please shed some light on how leases changed since 1945?

Best regards

Tony Bains

Rightmove doubles 2013 forecast for house prices Latest Articles, Property Market News, Property News

Rightmove doubles 2013 forecast for house prices as it reports ‘aggregation of marginal gains’ fueling a predicted 4.8% annual growth.

There have been seven monthly rises on the trot and two consecutive record months as the price of newly marketed property increases by 0.3% (+£860) in July boosting year-on-year growth to 4.8% (+£11,561)

Rightmove’s 2013 forecast has been increased from 2% to 4% as latest increases fuel recovery of the housing market.

There are signs finally of a broader-based recovery with all regions up year-on-year for the first time in nearly three years contributing to the positive national picture. Confidence in the market is said to be on the up with the proportion of people expecting average prices to be higher a year from now doubling compared to this time last year, now at 62% from 31%.

Rightmove reports an increase in movers and predicts more to come as property transactions are already up 5% year-to-date and lead indicators suggest more in the pipeline. Email enquiries to agents and developers are up 18% on 2012, new sellers up 5%, mortgage approvals up 6%.

It has already been reported that Surveyors are struggling to cope with the increase in demand with waiting lists for surveys pushing up into weeks. This is however also due to the number of Surveyors who have left the market since the Credit Crunch.

Rightmove along with many financial analysts predict a positive borrowing window as markets do not expect a base rate rise for three years. Funding for Lending competition is easing rates and availability of finance, plus the ‘brick-shortage success’ of Help to Buy!

Fair wear and tear? Landlord needs advice on dispute with Housing Association Latest Articles, UK Property Forum for Buy to Let Landlords

I entered a contract with Sheppards Bush Housing Association “SBHA” for three years at agreed rent of £310 per week.

They knew I was going aboard.

I checked with Ealing Council and they confirmed that the rent for my property would be £310.

I borrowed money to do a lot of work that they required on the property. They promised monthly visits and given I used to work in Homeless Person Unit “HPU” for Ealing Council I knew this to be important.

In October 2009 I signed the contract and returned it to SBHA. I received a confirmation offer letter in October 2009.

I handed the property over in early November 2009 and left the country on the 19th November.

In December SBHA wrote to me saying that they had to reduce the rent as Ealing Council would not pay £310 per week. I checked with the council and they told me if I went with them they would pay £310 but I was in a remote part of India and I needed my loans and mortgage covered, so I agreed under pressure to accept the new rent of £250 per week.

There were no monthly visits and two years into the contract the tenant complained of excess mould in the flat. I sent in a surveyor to have a look and he found a leak under the bath that had been going on for some time, he said about six months. It caused extensive damage. Repairs cost me over £1,500 and I am not sure of the long term damage.

My insurance did not cover me as I could not prove when the leak started. The tenant said the floor in the bathroom did turn black but she thought nothing of it. Monthly checks would have found this.

When the tenant left the property I was presented with a flat needing over £5,000 worth of repairs.

The tenant had not cleaned the flat and there was excessive scale on the tiles in the bathroom. The wooden floor in the kitchen had come up in places around the fridge. The tenant did not report this as a repair and threw away the wooden blocks so that it could not be repaired. The bathroom panel was rotten due to water flowing over it from the shower and so on. The tenant had removed the carpets in the living room. She had replaced the vinyl in the bathroom but not sealed it in etc. etc. etc.

The basis of the agreement with SBHA was that any tenant damage would be paid for, that was their reason for not offering a deposit. However, repairs are my responsibility.

Because of the reduction in rent I did not have the money to pay for the repairs and they threatened me with a rent stop. If they stopped the rent I would have defaulted on my mortgage and loans. Rather then having money saved up which I would have had under the original agreement I struggled. I had to fly back from China and do the works myself. After many letters they have now decided that they will look at my case again.

Were does one stand in a case like this were one side says damage and the other says fair wear and tear?

Your comments will be greatly appreciated.

Thanks

David Evans

Neil Gammie of Birmingham GOOD Landlords Campaign Sponsors

Neil Gammie of Birmingham

I’ve been a professional landlord building a portfolio of properties in the Edgbaston area of Birmiingham since 1986.

I handle all aspects of my business except finding/vetting tenants which I leave to a couple of trusted local lettings agents. I try to keep abreast of legislation and the increasingly perverse number of recent court cases which we are all trying to get our heads around.

I rent out a variety of properties and my attitude is not that of landlord – a word which I loathe – and tenant but of somebody supplying a service for which I am paid. My customers tend to stay in my properties and I have few voids. I am a member of NLA and RLA and also company secretary for four freehold companies owning blocks of flats, 3 in Birmingham and 1 in Devon.

Two years ago I suffered major fire damage to a property and was left battered and bruised by the whole restitution process which was an absolute nightmare. I was shafted by my insurance company, the loss adjustor, the company appointed to carry out the refurbishment works and the surveyor who had his own agenda. I learnt a lot. If you are about to make a major claim get in touch with me first on my email address below.

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