Author: ablesurveyors

Able Surveyors offer a comprehensive valuation service for residential and commercial properties in London and the Home Counties. Our RICS Registered Valuers undertake Red Book valuations for a wide range of requirements including tax, insurance and legal purposes, ensuring that you have a robust market valuation you can rely on.

What is the Red Book?

As part of their ongoing commitment to the promotion and support of high standards in the delivery of market valuations, the Royal Institution of Chartered Surveyors (RICS) has published a key document for its professional members. ‘RICS Valuation – Global Standards’, better known in the property industry as the Red Book, contains mandatory rules, best practice guidance and further commentary for RICS Registered Valuers. The latest issue became effective from January 2022 and a downloadable copy is available from the RICS website.

When referring to the Red Book, surveyors generally talk about the best practice guidelines and rules for professional valuations and conduct contained within the publication. A valuation carried out according to the standards and guidance provided by the RICS is commonly known as a Red Book valuation.

The term is often used to distinguish this type of formal valuation delivered by a RICS Registered Valuer from an informal free market appraisal of the kind that an estate agent would provide for marketing a residential property. While ‘valuation’ may be used to describe both, the basis for arriving at a market valuation for a property, and the robustness of the calculation, are very different indeed.

When is a Red Book valuation required?

While an estate agents’ market value estimate may suffice in many instances, there are certain cases when only a formal Red Book valuation will do. In any scenario where a formal asset valuation is requested for taxation, finance, insurance or legal purposes, the relevant authorities including institutional lenders, solicitors, accountants, HMRC and the courts, are certain to insist that the valuation should be carried out by a RICS Registered Valuer according to Red Book standards.

This will include valuations for:

• Probate and Inheritance Tax
• Personal asset valuations
• Tax planning and Capital Gains Tax
• Private property sales, including compulsory purchases and shared ownership purchases
• Property sales by charities
• Asset transfers into a SIPP pension
• Matrimonial matters and divorce settlements
• Obtaining finance or remortgaging
• Lease extensions and collective enfranchisement
• Dispute resolution through mediation, arbitration or court proceedings

What makes a Red Book valuation more accurate?

A Red Book valuation consists of an independent RICS Registered Valuer assessing the property and producing a formal report on its current market value. The Red Book will indicate which of the five valuation methods the valuer should use, depending on the property, and there’s a rigorous set of criteria covering duty of care, ethics, the minimum content of the valuation report and the valuer’s qualifications. To help with the accuracy of the calculation, the valuer will look at three recently sold comparable properties in the area.

A Red Book valuation is designed to ensure the highest standards are adhered to in the valuation process, from inspection to presentation. The result is a confident report based on all correct procedures having been followed to produce a robust valuation that will stand up to any scrutiny it may face. A Red Book valuation is usually valid for 3 months but may be extended.

Professional property valuations you can trust

At Able Surveyors, our expert team has 25+ years’ experience providing building valuations, property surveys and much more. We are passionate about ensuring that our clients get the most from their property asset acquisition, management or disposal.

Our RICS Registered Valuers have extensive expertise delivering high-quality Red Book valuations for many different purposes, providing our clients with full peace of mind that our valuations are independent, professional, accurate and honest. Since you or the instructing party will be relying on our professional judgement and opinion, you can rest assured that we are fully protected by indemnity insurance.

Please get in touch with Able Surveyors to find out more about any of our services and to discuss your requirements for a Red Book valuation carried out by our competent RICS professionals.

No one wants to move into a new house only to discover that the roof needs repairing or, perish the thought, replacing.

At best, you’re looking at a cost of a few hundred pounds to make repairs. But if the damage is bad enough to warrant a full replacement you could be hit with a bill of between £3,000 to upwards of £18,000, according to Checkatrade.

What’s more, a problem in this most integral of features is usually urgent, leaving you with no flexibility on when the work is carried out.

So before you make an offer on a property, it‘s essential that you do your due diligence first.

One of the best ways to get a full picture of a property’s condition is by commissioning a RICS Homebuyer Survey, which will look at all the main elements of a property including the roof. For very old or more complex homes, we would always recommend a more in-depth RICS Building Survey.

You can also carry out your own inspection of the roof from the ground. Keep an eye out for missing tiles, broken flashing and areas that appear to be drooping or sagging. If possible, get into the loft space and check the interior for any gaps, holes or signs of damp.

Take a thorough look around the rest of the property when assessing the condition of the roof. Issues such as damp patches on the ceiling, stained plaster in top floor rooms and sagging ceilings are all signs there may be a problem.

Beyond that, make sure you ask the seller or agent plenty of questions. We recommend you get answers to these topics before you sign on the dotted line.

How old is the roof?

The average lifespan of a roof is between 25 – 50 years, dependent on the materials used and quality of construction. By finding out when the roof was fitted or replaced you will get an idea of how long it is likely to last.

What is it made from?

This, again, is a question that will help you anticipate potential costs. The most durable material for a roof is slate or clay tiles, which can last up to 100 years if well maintained. Concrete tiles also have good longevity, lasting between 40 and 80 years. EDPM rubber is good for 40 – 60 years and metal roofs will last three or four decades. Asphalt, often found on flat roofs, is one of the materials most likely to need repair. It usually needs replacing once it is beyond the 25-year mark.

Who installed it?

If possible, it is worth finding out the name of the contractor that installed or replaced the roof. In the UK, there is no legal requirement for licences or certificates to operate as a roofer. It may give you some reassurance if you find out the seller used a roofer registered with a competent person scheme, which offer insurance-backed warranties and complaints procedures in case of any problems. In any case, the seller should be able to provide a Building Regulation Compliance certificate for any work carried out.

Is the seller willing to fix the roof if needed?

You should be able to negotiate with the seller if it turns out the roof of their property is in need of repair or replacement. You will need to weigh up whether it is best to request that the seller carries out the work in order for the purchase to proceed, or whether to reduce your offer to cover the costs. In addition to a professional Home Buyer Survey or full Building Survey, a Specific Defects Report can be a useful tool to use in any negotiations as it will give in-depth analysis of an issue as well as detailing the likely course of action needed.

Are you confident that your dream home will live up to expectations? Call us now for friendly, expert advice on how to ensure a smooth move.

A well-maintained, mature garden can be a real asset to a property, boosting its appeal, saleability and value. Most garden lovers would agree that outdoor spaces can be immeasurably improved by the presence of one or more trees. But however lucky you may feel about having one of nature’s green giants in your garden, consider the possibility that a tree in the garden may be causing damage to the house.

At Able Surveyors, we’ve been surveying homes in London and Essex for 25+ years. During that time, we’ve seen many serious building defects including subsidence damage caused by trees.

Root growth

Unfortunately, any large, vigorous tree or fast growing shrub including the infamous Japanese knotweed, in the vicinity of the house has the potential to cause subsidence damage. Did you know that the underground root system of a tree spreads to at least the size of the green canopy above? In fact, tree roots can spread more than three times the width of the canopy and the height of the tree, with potentially serious consequences for any nearby buildings.

Root growth alone is unlikely to damage the foundations directly, however the roots’ search for moisture in the soil may affect the stability, particularly if the property is built on clay soil.

Clay soils

Clay soils are found throughout the UK and especially in London. Most properties in the Greater London area are built on London Clay, which is known to be particularly prone to shrinkage, being highly susceptible to changes in volume caused by high water content.

Houses built from the 1950s onwards tend to have deeper foundations, meaning the risk of the soil drying out is lower than with older properties. If you are thinking of buying a pre-war or period property in or around London, it is advisable to assess any trees near the house.

In their search for water, tree roots can cause the soil to shrink or swell through the year as the moisture content of the clay soil rises and falls. The movement in the soil increases the likelihood of the foundations moving, causing subsidence or heave.

You can read our full guide to subsidence here.

Subsidence symptoms

Structural movement can be caused by a number of things but moisture in the soil plays a key part. Plants, and ‘thirsty’ trees growing near the building draw up water through the roots, leaving the soil drier and therefore more prone to shrinkage.

The signs of subsidence may not be obvious to the layman, but an experienced Chartered Surveyor will be able to detect them immediately. It goes without saying that the earlier you discover and deal with structural movement, the easier and potentially cheaper any remedial work will be. Key signs and symptoms include:

• Large cracks in walls, visible from the inside and outside
• Cracks around doors and windows or where an addition joins an older building
• Cracks that are wider at the top than at the bottom and more than 3mm wide
• Misaligned doors and windows
• Sloping floors, skirting boards with gaps underneath, particularly in older buildings

Worst trees for gardens

Many trees require high volumes of water to sustain their growth and some are so ‘thirsty’ that they should never be planted in a regular sized garden, or buildings constructed near existing specimen. We’ve listed these trees below, include the safest distance from your house for each one. These include:

• Willow, 40 metres
• Poplar, 35 metres
• Oak, 30 metres
• Elm, 30 metres
• Horse Chestnut, 23 metres
• Lime, 20 metres
• Maple, 20 metres
• Cypress 20 metres

Willow trees prefer damp conditions – there’s a reason they’re often found on riverbanks. A mature tree can extract around 1000 litres of water from the soil per day. Poplar trees grow very fast, particularly the large columnar variety popular in Europe. Oak trees have shallow spreading roots and a very large canopy, and the tree needs vast amounts of moisture. In fact, oak trees are responsible for the largest number of UK subsidence claims.

Some trees are safer than others to have near buildings. Small ornamental varieties are least likely to cause problems, including apple, plum, pear, hawthorn, rowan and birch trees. If in doubt, do seek advice from a qualified arborist before making a decision.

Next steps

If you are worried about a tree in your garden or signs of possible subsidence in the house or an outbuilding, it’s important to get it investigated by a qualified surveyor. At Able Surveyors, we can carry out a range of inspections including a full RICS Building Survey, specific defect surveys and ongoing monitoring services for structural movement, to get to the root of the problem and recommend the best way forward. Get in touch with our expert team to discuss your particular requirements and to arrange for a no obligation quote.

The home buying journey is usually travelled along a long and winding road. One of the key milestones in your search for your next property is to find one that meets your needs, make an offer and have it accepted. It’s a huge relief to have completed this step but don’t be in a hurry to mentally move in just yet. There are lots of things that need to happen before you get the keys to your new home. Below is a summary of the process that gets triggered once the sale has been agreed with the seller and the steps you now need to take.

1 – Ask the seller to cease marketing

The first thing you need to do is to ask the seller (or their estate agent) to take the property off the market and cancel any outstanding viewings. Make your offer conditional upon this happening straightaway. Estate agents have a legal duty to inform the seller of all offers made. As far as possible, you want to eliminate the possibility of anyone else making a higher offer and risk being gazumped.

2 – Contact your conveyancer

One of the first things that you will need to supply to the estate agent is the details of your property solicitor or licensed conveyancer who will act on your behalf to liaise with the seller and process the transfer of ownership through exchanging contracts and ultimately completing the sale. In order to avoid any delays, it’s a good idea to have done your research well in advance, obtained conveyancing quotes and chosen a good local solicitor, and put them on standby. Once your offer to buy has been accepted, contact your conveyancer and with the details of the property in question and let them know that they will shortly be hearing from the other side.

3 – Contact your lender

Estate agents typically require buyers to have a mortgage agreement in principle before they are willing to accept your offer. That said, an in-principle decision is not the same as an approved loan. Once you have secured the property, contact your mortgage company straight away with the details of the property in question. The lender will need to carry out their own mortgage valuation to ensure the property is worth the price you’ve agreed to pay before they can approve the mortgage. Whether you’re a first-time buyer or already have a mortgage on a property you’re selling, it’s vital to have a good channel of communication with the lender and obtain clear advice to ensure you are meeting all the criteria.

4 – Book a survey

The lender will conduct a mortgage valuation for the property, but this is for their own benefit, not for yours. Only an independent survey carried out by a RICS surveyor will give you an honest professional view of the property’s true condition. This is your opportunity to do your own due diligence, making sure that the asset constitutes a good investment. At Able Surveyors, we can advise on the right choice of survey for your needs and provide you with a competitive quote. Our experienced surveyors are experts in the field, able to spot potentially serious building defects such as damp, timber decay and subsidence. There are many issues that the untrained eye may not recognise but that could have a material impact on the price you’re willing to pay, or your desire to purchase at all.

5 – Work towards exchanging contracts

Your solicitor will start preparing the draft contract as soon as they have been instructed. This will include key information including the agreed price, the level of deposit, dates for exchange and completion, and which fixtures and fittings are included – all of which have to be agreed with the other side. This process takes time, and delays and problems can arise, which make this one of the most stressful stages in the house buying process. What’s more, your conveyancer will need to complete a range of important checks and searches including local authority searches, environmental searches, title searches and more. These can also take time to be completed, and potentially throw up unexpected issues.

6 – Exchange of contracts

Once all legal steps and checks have been completed, pre-contract enquiries answered to everyone’s satisfaction and outstanding issues resolved for both parties, the solicitors will indicate that they are ready to exchange contracts. This is the point at which the deposit is paid and the transaction becomes legally binding. At any point before contracts are exchanged, you or the seller have the option to have a change of heart and withdraw from the deal. It can be hugely frustrating when a seller suddenly pulls out leaving you without a property to buy. Conversely, it can also be a relief to be able to step away from buying a property when ‘dealbreaker’ problems are discovered.

7 – Completion

When contracts are exchanged, the date of completion will have been fixed, so you now know when you will be able to move. The countdown has begun! Make sure that you have a removal company lined up for the date you wish to move, and are ready to start packing. On the day of completion, the outstanding funds will be transferred to the seller’s client account and you will be able to collect the keys to your new home. Any mortgage account fees, legal fees and Stamp Duty will now also become payable. Finally, your conveyancer will register the transfer of ownership with the Land Registry.

Get in touch

At Able Surveyors, our experienced team of RICS Chartered Surveyors has been serving property buyers in London and Essex for over 25 years. If you are looking for valuable impartial advice at competitive rates, we would be delighted to help. Contact our friendly team to discuss your next home purchase today.

If you are in the process of buying a house, you will no doubt want to be reassured that your purchase is a good investment. Most buyers take a keen interest to find out more about the condition of the building before going through with the transaction, and that’s where our independent property surveys can add real value. But what about the garden?

Were you aware that there may be dangers lurking in the garden that can have potentially serious structural impact on the building? If you haven’t heard of Japanese knotweed, now is the time to sit up and take notice. It could be bad news.

What is Japanese knotweed?

Japanese knotweed (Fallopia japonica) may look like a regular perennial weed but it is a highly invasive species that thrives pretty much anywhere and is virtually indestructible. It originates in Japan and was introduced to the UK in the mid-1800s as an ornamental garden plant. Unfortunately, unlike in its native habitat, knotweed has no natural enemy in this country.

Plants grow rapidly through the warmer months – up to 10cm per day – and die back in the wintertime, only to return with renewed vigour the following year. The speed of growth can cause problems with biodiversity, flood management and damage to property. Mature specimen are powerful enough to undermine man-made structures, able to push up through patios, tarmac and concrete, and through drains and cavity walls.

How do you spot it?

At Able Surveyors, our Chartered Surveyors know to look out for Japanese knotweed in gardens and outdoor spaces. Its pale green shield-shaped leaves on tall, hollow stems bear a resemblance to bamboo and can grow up to 3 metres high. When in bloom, there are clusters of small white flowers in upright formations.

While Japanese knotweed can be found in most places in the UK and will grow happily in any terrain and on any soil, it is perhaps Victorian properties that are most at risk. Houses built in the mid to late 19^th century are most likely to be suffering from historic problems with this plant. UK maps and online plant trackers are also available to help you identify areas where knotweed may be a local problem.

In actual fact, finding Japanese knotweed in the garden shouldn’t come as surprise. There is a specific question on The Law Society’s TA6 Form which forms part of pre-contractual enquiries that the seller must answer. A false declaration means you could sue the seller under the Misrepresentation Act.

Why is Japanese knotweed a serious problem?

As you may have already gleaned from the information provided thus far, the presence of knotweed on the grounds (or anywhere in the vicinity) of a property you are thinking of buying constitutes a real risk that goes beyond the nuisance factor of having to deal with fast-growing shrubbery in the garden.

Knotweed can spread with great speed and resilience, damaging building structures in the process and exploiting any weak points that may already be present. From underground drains to paving, tarmac and retaining walls, even causing subsidence issues to the main foundations of the house, this plant takes no prisoners.

Will knotweed affect the property value?

Indeed, it shouldn’t come as surprise to hear that mortgage companies take a very dim view indeed when it comes to lending on knotweed-afflicted properties. Many won’t approve a loan on properties that show evidence of knotweed within 7 metres of the boundary. Of those who do, they will insist on a Knotweed Management Plan (KMP) being in place, which is a prerequisite for house buying and selling of knotweed-affected properties. According to Environment Agency regulations, once you find Japanese knotweed on a property, it is essential that you set up some form of KMP.

Needless to say, knotweed majorly affects the saleability of the property and impacts its value, both for your upcoming transaction and future sales. According to official figures, untreated knotweed infestations can reduce property value by 10%. What’s more, even if the plant has been treated and removed, the drop in value can still be as much as 6-9%.

If your Building Survey has flagged up Japanese knotweed, you must speak to the seller and their agent and at the very least review the previously agreed price.

How can you get rid of it?

Controlling Japanese knotweed is a difficult and expensive task that requires specialist contractors. Very few knotweed specialists currently offer a 100% removal guarantee. Where Japanese knotweed is considered to pose a risk to the property, it is usually necessary to agree to eradicate the plant by implementing a long-term Knotweed Management Plan to satisfy the requirements of the lender.

The removal of knotweed is generally carried out in 3 steps:

1. Excavation – digging out all plants and the surrounding contaminated soil, and disposing of it as ‘controlled waste’ by licensed carriers to licensed landfill sites. It’s a laborious and costly exercise.
2. Herbicide control – repeated application of herbicide to kill the plant gradually, including stem injections. It can take months and years to gain control.
3. Physical barriers – inserted along the boundary to arrest and contain the spread of knotweed to another property.

What are your options as a buyer?

As a potential buyer, you may well decide not to proceed with the purchase and steer clear of any property affected by this invasive plant. However, the presence of knotweed need not be a dealbreaker as long as you go into the purchase with your eyes wide open and with a clear plan of action.

At Able Surveyors, we can help with a wide range of range of surveying services and Specific Defect Reports for properties across London and Essex. Contact the team to discuss any Japanese knotweed issues at the property you are thinking of buying and let us help you understand the potential implications and ramifications, so that you can make the best decision.

Getting onto the property ladder is a big achievement and an exciting time. However, in your search for the perfect first home, it is essential that you use your head to help you decide whether the property you are about to invest in is good value for money. The financial commitment of a mortgage is a huge long-term decision, so it needs to be the right one for you. And just as you wouldn’t buy a car without getting it checked over first, you shouldn’t buy your first flat or house without a survey.

At Able Surveyors, we have more than 25 years’ professional experience of residential properties in London and the Home Counties. Our independent property surveys are designed to uncover any building defects and potential issues that may not be obvious to the layperson. Without the benefit of a surveyor’s report, these could end up costing you thousands to fix after you move in.

What exactly is a home survey?

Able Surveyors are an independent firm of RICS accredited Chartered Surveyors helping our clients to get the most from their property purchases. As such, we offer the full suite of home surveys endorsed by the Royal Institution of Chartered Surveyors, our professional body:

RICS Property Valuations

RICS HomeBuyer Report (Level 2)

RICS Building Survey (Level 3)

While each of the above surveys has a different level of detail, they are all designed with the client at the core. The aim is to provide you with all the relevant factual information you need to make an intelligent decision about the property you are thinking of buying.

Whichever survey you choose, our surveyor will arrange for a site visit of the property in order to inspect the condition of both the interior and exterior of the building, looking for defects or signs of underlying issues. Our findings are then compiled into a user-friendly client report.

Which is the right survey for your needs?

As a first-time buyer with little property experience, you may need guidance to choose the right survey for your property purchase. The team at Able Surveyors would be more than happy to talk you through all the options and guide you in the right direction.

The RICS HomeBuyer Report (Level 2) is a mid-level building investigation, most suitable for conventional modern homes in reasonable condition. The most comprehensive level of reporting is provided through an RICS Building Survey (Level 3). This is the best choice for older buildings, non-standard constructions, larger properties and those that have been substantially altered or are in need of refurbishment. The report includes a detailed analysis of our findings for each building feature and also gives expert recommendations for repair and maintenance.

Is it really worth getting a survey for your first home?

If the flat or house you have your heart set on looks to be in good condition and the budget is already stretched, you may be tempted not to bother with a property survey. However, we think this would be a very risky decision to take.

Sadly, the issues that can easily go unnoticed by an untrained eye are often the most expensive problems to put right. This includes major structural issues, roof and guttering defects, persistent damp, wet and dry rot, faulty electrics and much more. An RICS home survey may cost a few hundred pounds but the potential savings can run into the thousands. The survey report will provide you with the facts you need to know to make an informed decision, be it to proceed with the purchase as planned, renegotiate the asking price, or walk away from the property.

Get in touch

If you’re about to buy your first home and are looking for friendly, professional advice from a reliable property surveyor in London, Essex or the Home Counties, please get in touch with Able Surveyors. We would be delighted to discuss your surveying needs and help you choose the most suitable home survey, putting you in the best possible position to make a confident decision about your very first home. Call us on 0207 164 6628 or obtain an instant quote here.

If you are thinking of making home improvements to your property, the issue of planning permission may weigh heavily on your mind. But did you know that, in many cases, you won’t need to obtain planning consent? Under ‘permitted development rights’, homeowners can make certain alterations without the need to apply for planning permission. This may include loft extensions, garage conversions and home extensions.

At Able Surveyors, our team of experienced Chartered Surveyors provides a wide range of surveying services and property-related services to help our clients get the most from their property assets. Our team hold expertise in home surveys in London and the home counties, and are RICS chartered, giving you peace of mind that we are experts in our field.

Let’s take a deep dive into the subject of Permitted Development and find out what it’s all about, and how the provisions can make your life easier when it comes to upgrading your property.

What is Permitted Development?

According to the government website, “permitted development rights are a national grant of planning permission which allow certain building works and changes of use to be carried out without having to make a planning application”. For homeowners wanting to improve their dwelling, this can be of major benefit to anyone wanting to add value to their property or maximise the potential of a new property investment.

Permitted development rights apply to the building as it was built or, for older properties, as it stood on 1^st July 1948. There is a limit to the number of alterations that can be made to a building under permitted development. If you purchase a property that has already been altered including any additions made by previous owners since 1948, it is possible that some or all of the property’s permitted development allocation may have already been used up.

Permitted development is regulated through local planning authorities, in the same way as planning consent. Before you start your build, you need to ensure that your plans are compliant and obtain written confirmation from your local planning officer that the proposed works are indeed classed as permitted development. Visit the Planning Portal to review the rules and ask your local planning authority for guidance, if you’re unsure.

What are you allowed to do under Permitted Development?

Permitted development rights for households fall into different categories, depending on the proposed improvements for internal or external works. Each category stipulates criteria that must be fulfilled for permitted development rights to apply, otherwise, planning consent must be obtained. Here’s a list of home improvements that generally fall under permitted development rights:

• Erection of front porch
• Garage conversion
• Side extension
• Rear building extension
• Loft conversion
• Installation of roof lights and dormer windows
• Internal alterations to the building
• External solar roof panel installation
• Erection of antennae and satellite dishes

What are you NOT allowed to do under Permitted Development?

If your building plans involve a new-build house or the formation of new dwellings by subdividing an existing property, permitted development rights are unlikely to apply. The list below includes other types of work that also fall outside the scope of permitted development:

• Building a front extension
• Verandas and balconies
• Raised platforms
• Extensions that are larger than half of the original land around the original house
• Extensions that are more than 4 metres high or larger than half the width of the original house

It is important to note that permitted development rights do not apply to leasehold properties, including flats and maisonettes, nor listed buildings.

Can Permitted Development rights be withdrawn?

It would be unwise to assume that permitted development rights will always apply, since permitted development rights can be restricted or withdrawn. As already mentioned above, leasehold properties do not have any permitted development rights. Check the lease to see what alterations are permitted and obtain the landlord’s written consent for any alterations you wish to make. For structural alterations to a flat or maisonette, you will also need to obtain planning consent.

If your house already is affected by planning restrictions, for example, if it is located in a Conservation Area, an AONB, National Park or World Heritage Site, there may be an Article 4 Direction in place to remove or restrict your permitted development rights. In this case, priority is given to the preservation of the specific character of the local area. The same applies if the property in question is a listed building, requiring Listed Building Consent or improvements or alterations to any of the ‘listed’ architectural features.

What to do next?

If you wish to perform home improvements or structural alterations to your property, your first port of call should be the Planning Portal and your local planning authority. Here you will find useful guidance and obtain written confirmation that your building project falls under permitted development. If the proposed works fall outside the scope for permitted development for whatever reason, planning consent will have to be sought.

Improving your property to make it more comfortable to live in, while adding value is high on the agenda for many homebuyers and owners. For professional advice and guidance regarding your permitted development rights and any planning issues you could be facing, contact Able Surveyors for an initial consultation.

If you are in the process of buying your next home, you know how long and arduous the journey can be. Once your offer price has been accepted and solicitors have been instructed, there’s still plenty that can go wrong before contracts are exchanged – and that includes gazumping.

Research carried out by finance provider MFS in 2020 showed that 31% of UK homebuyers (47% in London) over the last 10 years had experienced gazumping and lost out on a home purchase as a result, and the trend is set to continue as the market grows.

Let’s take a closer look at the dreaded practice and how you can protect yourself.

What is gazumping?

Gazumping happens when another buyer makes a higher offer for the property on which you have agreed the purchase. If the seller accepts the higher offer, you lose the property and any money already spent on it, which could include legal, surveyor and mortgage fees.

Reasons for gazumping can vary. Perhaps the seller has realised they can get a better sale price elsewhere, or you are taking too long to commission a home survey thus denting your credibility as a buyer, or perhaps your solicitor is slow to communicate and the seller has found a buyer who can move more quickly.

Is gazumping legal?

While gazumping may well be considered sharp practice, it is indeed perfectly legal. When your offer is accepted, the property is ‘sold subject to contract’ (SSTC). The property transaction does not become legally binding until contracts have been exchanged. As a buyer, you are vulnerable to gazumping at any time before that date.

Since exchanging contracts comes fairly late in the home buying process, and only takes place after the mortgage has been agreed, survey findings have been digested and local searches have been carried out, gazumping can be both hugely frustrating as well as financially painful.

How can you guard against gazumping?

Estate agents have a legal duty to pass on any offer they receive, so the first and most important thing you must do is to get the property taken off the market. Make it a condition of your offer that all marketing and advertising of the property ceases with immediate effect. If no-one else views the property, chances of a higher offer being made and you being gazumped are greatly reduced.

Once an offer has been accepted, it is assumed that both parties want to get on with the conveyancing process as soon as is reasonably possible. As a buyer, it is therefore in your best interest to be prepared and ready to proceed. This means having a mortgage in principle in place, a solicitor on stand-by ready to start the conveyancing, and all the necessary documents at your fingertips to avoid any unnecessary delays that could have the potential to derail the sale.

Appointing a surveyor and arranging for an inspection visit is usually the next step in the process. As RICS accredited Chartered Surveyors offering the full range of RICS endorsed home surveys, Able Surveyors are ideally placed to help you get the insights you need so you can make an informed purchase decision. Our surveyors are knowledgeable and highly experienced in property markets in London and Essex. Contact us here to arrange for a free no-obligation quote. London homebuyers can obtain an instant online quote here.

Keep the momentum going and do whatever you can to move the process towards exchange of contracts swiftly. You want to get contracts exchanged as soon as possible to have the legal certainty that your purchase is going ahead. Make sure that you are in regular contact with your mortgage provider and your conveyancing solicitor so that requests for information can be responded to quickly. Also, keep the estate agent in the loop; it’s in their interest to keep up the pressure on the seller.

It’s also worth building up a rapport with the seller. While the formal sale will be in the hands of the solicitors, and the estate agent serves as a go-between, there’s no harm in having a direct line of communication to the seller. That way, you can keep them informed of where you are in the conveyancing process and show that you are actively moving things along. If you get on well and they can see that you are a serious buyer who genuinely loves their home, they will feel more inclined to honour the deal in hand.

Finally, did you know that you can get home buyer protection insurance to protect yourself against a house sale falling through? While there may be nothing much you can do about a seller changing his mind or accepting another offer, at least you can mitigate the financial loss by claiming back some of your conveyancing fees, survey fees or any other expenses incurred on an abortive sale.

At Able Surveyors, we have over 25 years’ experience in helping home buyers in London, Essex and the Home Counties get the most out of their property purchase, and we would be delighted to do the same for you. For further information please get in touch.

If you are the owner of a leasehold property and the number of years remaining on the lease is approaching 90 years, you may want to think about a lease extension. Under the provisions of the Leasehold Reform, Housing and Urban Development Act 1993 (the Act), residential leaseholders have a statutory right to extend their lease. However, the process is often long-winded and potentially expensive, so it should be no surprise that many leaseholders are eager to explore alternative routes.

At Able Surveyors, we have over 25 years of experience in all aspects of building surveying and associated property services. Our team offers valuable professional advice including lease extension surveys and valuations and can help you increase the value of your leasehold asset. As trusted building surveyors in London and Essex, please feel free to discuss your property with us.

What are the differences between a formal and informal lease extension?

Briefly, a formal lease extension follows the statutory process set out under the Act. This must be initiated by the leaseholder serving a Section 42 Notice on the freeholder, and putting in an offer to extend the lease by 90 years with no future ground rent. The offer will be based on a professional leasehold valuation carried out by a surveyor, while negotiations will involve lawyers for both parties. After much to-ing and fro-ing, an agreement is eventually reached on the premium to be paid. Visit our recent blog for more information about statutory lease extensions.

The advantages for leaseholders taking the statutory route include:

• You will receive a guaranteed lease extension of 90 years which will be added to the number of years currently remaining.
• The term remaining on the lease is ‘frozen’ once formal proceedings have started, so there is no danger of the premium increases as the term decreases.
• Once your lease is extended, your future ground rent obligations will be reduced to zero.
• The premium payable for your lease extension is usually better value for money than can be achieved by an informal agreement with the landlord.

Informal lease extensions don’t need to follow the same process. A leaseholder will normally approach the landlord in writing with a request for a lease extension on terms to be agreed upon. These terms can differ widely: the number of years added to the lease will typically be less than the statutory 90 years, and ground rent clauses will remain or may even increase. The advantages of choosing an informal route include:

• To qualify for a statutory lease extension, you must have owned the property for at least 2 years. No such eligibility criteria apply for informal lease extensions.
• The cost of serving a Section 42 Notice is around £220, which constitutes a small cost saving if you conclude an informal agreement instead.
• There is tremendous scope for flexibility in negotiations. If, for instance, the premium is unaffordable, a lower additional term and keeping the ground rent in place could be a palatable alternative solution.

Are there any disadvantages to extending your lease informally?

The main issue with an informal lease extension is that these private agreements, though perfectly valid in law, are not bound by the provisions of the 1993 Act, meaning that all of the terms of the new lease may be open for renegotiation.

This creates a situation that could be exploited by unscrupulous freeholders, particularly if the leaseholder has insufficient access to professional advice. It is sadly not uncommon for landlords to take advantage of the power imbalance, with many lease extensions negotiated based on a shorter extension and with some ground rent retained.

When approaching a freeholder on an informal basis, you should expect a request for payment to cover the landlord’s administrative and valuation costs. It is also likely that the freeholder’s offered premium will be significantly inflated, compared to the amount calculated as part of the statutory process. This can leave the leaseholder with little option but to accept the landlord’s onerous terms, or break off negotiations and commence the formal route from scratch.

Which is the best route to take?

While both lease extension routes have their pros and cons, the advice on which is more suitable depends on your situation. If you have owned the property for two or more years, it makes sense to commence matters through the formal route, benefitting the full protection offered through the statutory process.

We strongly recommend that you always instruct a professional surveyor to conduct a lease extension valuation and serve the Notice on your behalf. Even if you start going down the formal route, there is nothing to stop you from reaching an informal agreement at any stage of the process – effectively giving you the best of both worlds.

If, however, you have not owned the property for the required two years, and the remaining lease term is less than 82 years, it may make more sense to approach the freeholder informally to negotiate a quick deal.

Contact Able Surveyors – London and Essex

For any questions regarding lease extensions in London, or to discuss your particular property needs in Battersea, Bromley, Brentwood and beyond, please feel free to contact the Able Surveyors team.

Do you own a leasehold property, typically a flat or maisonette? The number of years left to run on the lease are a key component of the property’s market value, and there may come a time when a lease extension would make sense. So, what can you do?

Many leaseholders are unaware that they have a legal right to extend the lease on their property. Should you decide to approach the freeholder or the management agent direct with a request for a lease extension, chances are that they may offer you a restored 99-year term and revised ground rent clauses in return for a non-negotiable premium to be paid. But don’t be in a hurry to accept their terms because you may be able to do better.

If you have owned the property for more than two years and meet certain other eligibility criteria, you have the right to a statutory lease extension under the terms of the 1993 Leasehold Reform Housing & Urban Development Act. What does it all mean? Let’s take a look at some of the key questions you should be asking.

1. Why would you want to extend the lease term?

By default, leasehold property is a depreciating asset. As the lease runs down, the value of the property decreases, while the cost of any lease extension increases. Ultimately, when the lease term expires, property ownership reverts back to the freeholder, though this rarely happens in practice.

An unexpired term of 80 years or less is considered by many to be unacceptable, since it makes the property hard to mortgage, remortgage or sell on. Mortgage companies have specific lending criteria and many simply refuse to provide the funds for a property of less than 70 years or so to run (exact figures vary between lenders).

2. What does a statutory lease extension achieve?

A statutory lease extension provides a 90-year extension on top of the existing unexpired lease term. Say your lease has 74 years remaining, a statutory lease extension will give you a new term of 164 years. In addition, ground rent will be reduced to zero for the duration of the lease, while the premium payable to the freeholder is determined by Schedule 13 of the Act.

Finally, if you extend your lease before the unexpired term has reached 80 years, no marriage value (50% of the difference in value before and after the lease extension) is payable as part of the premium, thus further reducing the amount due to the freeholder.

3. Are you eligible for a statutory lease extension?

In order to qualify for a statutory lease extension, you must have owned the property for at least 2 years, while the lease term must have been more than 21 years when it was originally granted. How many years are left to run on the lease is not relevant. The legislation only applies to residential property, not a business or commercial lease. Importantly, the property will not qualify for a statutory lease extension if the landlord is a charitable housing trust and your flat is provided as part of the charity’s work.

If you are in the process of buying a short-lease property, there is a way to get around the 2-year ownership clause. Assuming the seller has owned the property for more than 2 years, he can initiate the statutory process and assign the benefit to you as part of the contract of sale.

4. How do you start the statutory lease extension process?

To get the ball rolling, a lease extension valuation must be carried out on the property in order to determine how much to offer the freeholder, and to give you an idea of the financial liability involved. Once this has been done, your solicitor will serve a formal S42 Notice on the freeholder to initiate the process.

The freeholder than has 2 months in which to serve a Counter Notice, which will typically request a higher premium payment. Thereafter follows a 6-month negotiation period to reach agreement, though either part can refer the matter to the Leasehold Valuation Tribunal (LVT) after 2 months. In our experience, the vast majority of cases are settled without the need for a formal hearing. It should be noted that you will be responsible for the freeholder’s valuation fee and legal fees as well as your own.

5. How can Able Surveyors help?

As experienced lease extension surveyors in London and the Home Counties, Able Surveyors can help you navigate this complex procedure, ensuring that fair freeholder compensation is negotiated. We specialise in carrying out the requisite lease extension premium valuations, entering into negotiations with the freeholder on your behalf and, where necessary, preparing for and representing your interests at Tribunal.

If you have any questions about extending the lease on your property, need advice on buying a freehold property or would like expert assistance with any surveying matter, please don’t hesitate to get in touch.