Survey required?

russabbot

The mother in law is in the process of selling the lat she currently lives in and buying a retirement flat.

She won't need a mortgage for this and the retirement flat is one where she pays the management company that owns the flats for building insurance so they pay for new windows roofing etc

As there will be no mortgage I understand that she isn't legally required to have a survey, my question is will it be a waste of her money to have a survey or should she have a basic one to be on the safe side?

Thanks in advance.

lynzpower

Check what their buldings insurance actually consists of. Part of my service charge is for buildings insurance, but thats only the macro building ie the roof, the communal areas, lifts grounds etc. If god forbid there was a fire in here, I have to have my own seperate insurance to cover that. This wasnt made clear to me exactly until 3 days before I actually exchanged...

Debt_Free_Chick

russabbot wrote:

As there will be no mortgage I understand that she isn't legally required to have a survey, my question is will it be a waste of her money to have a survey or should she have a basic one to be on the safe side?

No-one is legally required to have a survey.

I think the best way to decide is to ask yourself "Do I want to know about necessary repairs or corrections now? Or am I content to be "surprised" after I've moved in?"

Another reason for having a survey is, if work is required and it hasn't already been reflected in the price, you have an opportunity to negotiate a reduction, to fund the cost of the work that needs to be done.

HTH

silvercar

You need to consider what happens when you sell the property. If a future buyer discovers a problem your sale would be affected.

russabbot

Thanks for your replies... I think I better get onto the estate agents for the contact details of the management company... Don't want her to move in and find loads of thing aren't covered with the buildings insurance..

ABN

russabbot wrote:

is one where she pays the management company that owns the flats for building insurance so they pay for new windows roofing etc.

Not an expert on these matters but surely the building insurance will only cover replacement due to accidental damage etc i.e. not due to ware and tear

Thus should say the roof, windows or any other general improvements need doing then the costs of that would have to be met by ALL the residents.

If that is correct then a full survey of the whole building would be sensible I would have thought.

pboae

Also, you say the management company pays for the building insurance, new windows, roofing etc. I would double check that. Building insurance wouldn't usually pay for a new roof or windows, unless the damage was by an insurable risk (e.g. a storm). The way it usually works is that if a block needs major works (like new windows) the management agency arrange for the work to be done, add on a management charge, admin fee, and anything else they can think of, then split the bill amongst the leaseholders as part of their annual service charge.

A variation on this is to ask leaseholders to pay a fixed rate each year, which goes into a pot that can be drawn on when major work is needed. That has disadvantages as well though, as the management agency are getting the interest from those payments in the meantime, and you may still have to find extra cash if the 'pot' isn't big enough when the bill comes in.

Edit: Sorry ABN, crossed posts!

russabbot

Yes.. I should have been a little clearer.. As I understand it, she will have to pay around £70 per month in all for insurance, service charge, garden maintenance etc. I'll check with the company to find out exactly what is and isn't covered before she buys..