Experts reveal the key questions to ask before buying a house

Legal experts from the Professional Negligence Team at Been Let Down reveal the key questions to ask before buying a house.

Key points:
    • According to Government reports, around a third of property transactions fall through in the UK
    • According to the latest data from the Legal Ombudsman, residential conveyancing complaints (the legal part of buying homes) have increased from 28% to 30% between 2020 and 2021
    • Between 2020 and 2021, 256 complaints filed with the Property Ombudsman were against property surveyors and professionals – the fourth highest overall
    • Experts provide a list of questions that buyers should ask the estate agent, conveyancer (solicitor), and surveyor to ensure the best possible outcome for your transaction, and avoid any issues further down the line
    • More information is available here. 

Rising interest rates may be causing mortgage misery for millions, but with recent stamp duty changes, many are looking to move house or get on the ‘ladder’ in the coming months. 

But, while having an offer accepted on a property is an exciting moment, according to a recent Government report, around a third of all housing transactions in the country fall through, costing people hundreds of millions of pounds each year. 

There are multiple reasons why a property transaction can fall through. Sometimes the buyer simply changes their mind, or the housing chain breaks. However, this can also be down to other things such as findings from the conveyancing process or the results of the property survey. 

In the current climate, households that are already feeling the pinch will want to avoid losing money if a sale falls through.  

With this in mind, legal experts from the Professional Negligence Team at Been Let Down have revealed the most important questions to ask at key stages of the buying process, and potential snags or red flags buyers should be aware of. 

Questions to ask the Estate Agent or homeowner:

Of course, anyone in the market for a new home will have countless questions when they arrive to view – hopefully – their dream property, and this is before the home-buying process is even initiated. 

Been Let Down asked Gus Harding, property expert and founder of Harding Mortgages, to outline a few key questions that buyers might miss: 

1. How long has the property been on the market for?  

It’s key to research this aspect before you decide to make an offer. Look out for properties that have been on the market for a while – they may be overpriced.  

2. What are the neighbours like, and have there been any recent changes to the local area that could affect the value of the property?  

Always make sure you are aware of the property’s surroundings and look for signs of change in the local area. New developments or infrastructure projects could either increase or decrease the value of your property.  

3. What is the council tax band?  

It’s key that you don’t overlook this aspect before making an offer. You don’t want any nasty surprises when the first bill arrives! 

4. What are the EPC ratings for the property?  

Ask for copies of the current EPC ratings – you want to know how energy-efficient the property is. 

5. What is included in the sale?  

Finally, make sure to know what is included in the final sale. Things like furniture and fittings can be costly to replace!   

Questions to ask your conveyancer:

Once you have made a choice, it’s time to initiate the conveyancing process. 

The conveyancing process covers the legal transfer of property ownership for both buyers and sellers, resulting in the final exchange of contracts, and is a key part of the process. 

Data from the Legal Ombudsman reveals that complaints relating to residential conveyancing made up almost a third (30%) of the total complaints in 2020/21, up from 28% the previous year, showing it’s not unusual for prospective homebuyers to have issues in this area of the process. 

Tony Hill, Head of Professional Negligence at Been Let Down, gives his advice on the key questions to ask your conveyancing solicitor before you make an offer, to avoid any issues down the line: 

1. Aside from me, who will have right of way for the communal areas?  

You should always ask your conveyancer (solicitor) who has the right of way for communal areas around the property you’re looking to buy. This could be anything from a communal path or access running through the garden of a property, or a shared driveway. Disputing Right of Way once you’ve bought the property can be a long and difficult process so it’s best to know what you’re dealing with right at the start. 

2. Is this a freehold or a leasehold, and what are the terms and conditions?  

When buying a leasehold property, you are buying the right to live on the land for a specified amount of time, so you only own the building (i.e. the property you’re buying), but not the land itself (this would be freehold).  

If you’re buying a leasehold property, be aware of clauses relating to ground rent – this is the amount you have to pay the landowner for the land the property sits on – and how long is left on the term.  

Some lenders have rules around the length of the term on a leasehold that could affect your mortgage, and term length can also affect the ease with which you can sell the property down the line. 

3. Which building or planning permissions will I need, if I want to get any work done on this property?  

Building or planning permission issues can be problematic for those that want to develop or build upon their home in the future. The best way to avoid any miscommunication here is to let your conveyancer know from the get-go what your intentions are, so they can work with that in mind.  

Your conveyancer should also look into building work that has already been completed, like an extension or loft conversion for example, to make sure everything is in line with regulations. If you move into a home without being made aware of non-compliant extensions and/or building work, your property could be devalued, and you may find it difficult to sell it on in the future.

4. Does my property have a septic tank, and if so, is it compliant?  

Typically found in rural areas, you will also need to check if the property you’re looking to buy has a septic tank. The conveyancer should bring this to your attention anyway, but it’s always best to ask if you’re not sure.  

As of January 2015, new regulations came into force that banned the way septic tanks discharge waste with new compliance rules introduced. It’s really important to check this if you’re moving into a property with a septic tank, as if it’s not compliant you must upgrade or replace it. This can cost anything between £10,000 and £50,000 depending on the location of the septic tank, and the work involved.  

If a septic tank is not upgraded and found not in compliance with the new regulations, you could face a fine up to £100,000 from the Environment Agency.  

Questions to ask the Surveyor:

Although it is not a legal requirement to get a survey done when buying a property, buyers are always advised to undertake one.  

A property survey can identify any issues or causes for concern for the home you’re looking to buy, which can sometimes prove to be costly to fix later down the line.  

Your conveyancer should advise that you get a survey carried out, as this can also impact your mortgage offer and your decision to finalise the sale. They may also act as a ‘middleman’ between you and whoever conducts the survey. 

A professional surveyor will likely catch any issues themselves, but there are instances when things are missed, which can be financially damaging and, in some cases, unsafe.  

And often things do go wrong in this area, as demonstrated by the latest data from the Property Ombudsman showing that between 2020 and 2021, 256 complaints filed with them were against property surveyors and professionals, making it the fourth most complained-about category. 

Laurence Wright, Professional Negligence Solicitor at Been Let Down, gives his advice on the key questions to ask your surveyor (or pass on to your solicitor for them to ask), to make sure you’re aware of structural and safety issues, and avoid losing out on money to costly repairs on a property that may not be worth it.

These questions are: 

1. Has the roof of the property been checked and confirmed safe?  

A standard check for a surveyor is confirming that the roof of the property is safe and in a reasonable condition. Weather conditions can affect this – so it’s best to double check with the surveyor that this has been accounted for. For example, if a visual inspection is carried out on a dry day, pools of water or leaks may go unnoticed.

This is really important to check on, as roof repairs could cost you anywhere from £400 to £8,400.

2. Are there any signs of damp throughout the property? 

Surveyors may miss signs of damp or mould if somebody is currently living in the property you’re looking to buy. If furniture and other personal items don’t get moved at the time of inspection, damp patches can be disguised and, therefore, not reported on.  

It’s key that you or your solicitor ask about this as damp can cause long-term damage, and even cause structural problems further down the line, meaning you have to act quickly if you find any signs of it. Solving a damp problem can cost up to £5,000, depending on the scale.

3. Are there any potential signs of subsidence? 

This can be particularly prevalent where there is a new extension or a section of the build that is clearly not part of the original property. If part of the building is subsiding, it can pull the rest of the building with it, impacting a larger part of the property with the potential to cause serious damage. And it’s extremely expensive to solve this, too, with the average cost being around £12,500. 

Finding and buying your dream home can be an overwhelming and stressful process but having some guidance on the key issues to have in mind to make the whole operation as smooth as possible should hopefully help make it more bearable. 

 

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Kindly shared by Been Let Down

Main article photo courtesy of Pixabay