Next move

Arunnalls

Hi all,

i just wondered if anyone could offer some advice.

We have just had an offer accepted on a property (first time buyers, property less than £250k)

We have queries on two fronts:

a) We now need to instruct a solicitor and have a couple of quotes back We are unsure what searches will be required as the house had a HIPS report conducted prior to them becoming not necessary. Will this reduce the amount of searches and fees incurred?

b) also the bank require searches to be performed, they have three options:
1. Standard valuation report for £175
2. Homebuyer report £385
3. Building survey £625

Which level would be required with a HIPS report if that has any impact at all.

Thanks in advance
Adam

Cannon_Fodder

a) many searches run out, or are only partial, so I wouldn't expect massive savings from the existing HIP searches. Budget for them being needed, if not its a bonus.
b) The bank doesn't want searches. It wants a valuation/survey. HIP makes no difference. Standard Valuation is the minimum to progress a mortgage application.

If hard up, go for just Standard Valuation, but be prepared for unnoticed things to become apparent after you move in, that might not be cheap to fix. If you have a builder mate, get him round - like you would get a car mechanic mate to look at a motor, if you knew little about them...though preferably you'd have done that before the offer.
If less than 50 years old and normal construction, you'll probably be ok with the Homebuyer survey. But if there's anything specific you have noticed yourself, that you want special attention paid to, they will probably charge extra.
If old and/or unusual construction, do a Full Building survey.

PerfectPeaches

Hi there,

In answer to (a) the general searches for a residential property purchase are the local search, environmental, water and drainage and generally a chancel liability indemnity search (also known as a chancel check) and if your in a mining area a solicitor will also undertake to do a mining search (also known as coal & brine). As HIPS are no longer needed, you need to make sure your searches are not out of date as they tend to have a 3-6 month validity period. Depending on the local authority look to save around £300 for searches.

A mortgage company will require compulsory searches (above mentioned) to be done as well as a survey and this will be in their terms and conditions. Failure to have these searches can have an impact on whether your lender will actually lend. If unsure about which survey to undertake talk to your solicitor who can advise as they will know exactly what your mortgage lender will be wanting and can hopefully put you in the right direction.

My source of knowledge comes from working in a property department in a large law firm!