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Reinstatement Cost
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# 1
i240 Dan
Old 30-01-2009, 5:05 PM
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Default Reinstatement Cost

I am in the process of buying a house and have a quiry with the reinstatment cost for the property estimated in the Valuation Report.

We are purchasing the property for 155,000.

It is a 3 bed, stone, slate roofed, end terrace with a brick built garage.

The valuation states:

Calsulated using BCIS Guide to house rebuilding costs.

Main Building 230,000
Garage 20,000

Thats a rebuild cost of 250,000 for a house worth 155,000.

Is this correct and is there any way I can check for myself. I cannot understand why it would cost so much to reinstate.

I can only think that the Main Building cost should be 130, not 230. Even then 150,000 would still be nearly the full value of the property.

Thanks

Daniel
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# 2
payless
Old 30-01-2009, 5:10 PM
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STONE !!!!! thats your answer, ( a lot more skill in working with stone than brick, + cost of materials) ....now if it was a modern cavity brick ( well mainly block) off the shelf design you could be talking below PP for the insurance value

I assume your query is because of insurance-
If in doubt either ask a surveyor OR take a policy with unlimited ( or very high standard limit ) cover rather than a sum assured basis
Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.

Last edited by payless; 30-01-2009 at 5:16 PM.
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# 3
mattymoo
Old 30-01-2009, 5:24 PM
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Market value is determined by a number of factors but mainly location, location, location.
Rebuild value is the bricks and mortar cost plus labour and fees. They also ad a bit in for site clearance.

A house in a sink estate in the North East could be worth 50k yet cost 200k to rebuild, conversely, a house in a desirable London suburb could cost you 750k yet only be 250k to reinstate.
The two have no direct bearing on each other.
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# 4
i240 Dan
Old 30-01-2009, 5:31 PM
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Just ran it through this online calculator.

http://www.plusoneservices.com/rebui...ntee/index.asp

Gives a rebuild cost of 123,609.

Daniel
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# 5
payless
Old 30-01-2009, 5:38 PM
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so do you feel lucky ..and choose one over the other ( and either be
under insured OR pay for more cover than you need )
or do you take my above guidance ?
Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
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# 6
mattymoo
Old 30-01-2009, 6:58 PM
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I would ignore that guide. Just did my house with brick walls and slate roof.
Then did the same data but with stone walls and a thatched roof.
The figure was identical.

I wouldn't trust it one bit.
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# 7
clear_blu
Old 30-01-2009, 7:25 PM
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I dont understand, I assume that the survey and valuation was done by a professional. Why are you unwilling to accept the valuation done by someone in the business??
I have retired from a career in Financial Services........Thank God. Any advice given may be as a result of senile dementia so dont take it too seriously.......
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# 8
payless
Old 30-01-2009, 7:54 PM
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Quote:
Originally Posted by clear_blu View Post
I dont understand, I assume that the survey and valuation was done by a professional. Why are you unwilling to accept the valuation done by someone in the business??
I think OP did not get given an insurance figure from surveyor ( not uncommon these days ) the figure he is questioning is from a website calculator
Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
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# 9
jonesMUFCforever
Old 30-01-2009, 8:13 PM
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I would think that the fact you are in a terrace pays a part in this - a gas explosion for instance will probably damage next door as much as your own property - you would be responsible to pay for this (through your insurers obviously).
What goes around - comes around
give lots and you will always receive lots
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# 10
mattymoo
Old 30-01-2009, 10:29 PM
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The sum insured is only set for the insured's property. Attached or terraced properties make no difference as that element would be picked up under the liability section of the policy.

Payless - I read it that the ERBC had been obtained from the surveyors valuation and the surveyor had used the BCIS figures - as you would expect. OP would be daft to ignore this advice.
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# 11
payless
Old 31-01-2009, 9:19 AM
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Yeah on re-reading it does seem that way ( rather than Op calculating himself ) ,so yes he should take tyhose figures - although if in doubt my advice still stands

Quote:
If in doubt either ask a surveyor OR take a policy with unlimited ( or very high standard limit ) cover rather than a sum assured basis
Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
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# 12
i240 Dan
Old 31-01-2009, 7:33 PM
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The aim of me asking the question on here was to either get the response I have that the estimate made in the valuation is correct, or for members to reply with comments stating that the estimate was way off and I should have it double checked.

Seems that people feel that 230k is not unreasonable for a reinstatement cost for my house.

I asked the question as this is my first home and I have no point of reference.

Thanks for the helpfull advice.

Cheers

Daniel
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