Buying a flat - what kind of survey to do?

lowlitmemory

Hello all,

Sorry if this is a really obvious or silly question, but being 1st time buyers we have no clue and parents have only bought freehold houses so can't advise!

We are buying a leasehold 3-bed flat. It is above a shop, there is a row of shops with flats above so 'our' flat has flats on either side.

Our bank has already sent someone out to value the place. They asked if we wanted the basic valuation or full structural survey. We thought the full structural survey was unnecessary as it's a leasehold flat (the freeholder has responsibility for buildings insurance) and not on the ground floor.

However, I'm now thinking that can't be right and surely we should be getting some kind of survey done to check the electrics, check for damp etc? Does this exist and who can we ask to do it?

cattie

It sounds as though you would need a structural survey to check out the specific things you are concerned about and you would need to ask the surveyor to pay particular attention to any areas of concern. It is possible to find your own surveyor and if you go down this route, shop around as with surveyors being less busy than they once were, you can sometimes strike a good deal.

The other option is to see if you can find a registered electrician to check the electrics for you and a damp specialist to check if any damp problems. I've used damp specialist companies in the past and have found the ones I've approached very honest as on a couple of occasions they have told me the damp readings are normal and that no work is required.

hazyjo

Can't usually have a 'full structural survey' on a flat (unless the surveyor can survey other parts of the building too, which would probably mean the shop below).

If the electrics are old, look 'dodgy' or even if they're perfect, the surveyor is still likely to say 'look in good order, but recommend getting an electrician along to check...' / 'look dated, advisable to get an electrician along to check...'. They are not electricians, plumbers, builders... they are there to inspect the building.

If you are worried about anything being dated, it's worth getting independent reports done (as recommended above).

Out of interest, are the bank lending on a flat over a shop? Very unusual in this current climate! Do you have a huge deposit, or a particularly high mortgage rate, for example? Just curious...

Probably goes without saying to think very carefully about future resale, and about the use of the shop - would you want an Indian takeaway below, for example?

Jx

lowlitmemory

Thanks both. The bank sent us a copy of the valuation 'survey' and it didn't flag anything up and said the flat is worth what we're paying.

Jo, yes the bank are lending (we were surprised too!). We have a 15% deposit and a fixed-rate for 2 years of 4.79%. This is in London so perhaps they're more willing to lend for flats above shops, because that's where most of the housing stock in the area is! The shop is a newsagent so that's fine by us, and as for resale... we're not too concerned since it's such a lovely big space and as I say a lot of the housing stock here is above shops. We're intending to stay here for quite a while anyway as there's plenty of room for a growing family and the schools are good. Obviously we'd rather have a house but we don't have £3-400k spare This flat is half that price for more space than you'd get in a 2-up-2-down terrace house so we feel it's worth it.

nollag2006

lowlitmemory wrote: »

The shop is a newsagent so that's fine by us, and as for resale... we're not too concerned since it's such a lovely big space and as I say a lot of the housing stock here is above shops. We're intending to stay here for quite a while anyway as there's plenty of room for a growing family and the schools are good. Obviously we'd rather have a house but we don't have £3-400k spare This flat is half that price for more space than you'd get in a 2-up-2-down terrace house so we feel it's worth it.

I'd strongly counsel against buying above commercial premises. You will find it very hard to sell on.

I had a friend who bought a lovely big 3 bed flat above a fireplace shop in Richmond for his young family. It later became an "adult" shop. He has been trying to sell for the past couple of years, to no avail.

As for the issue of the type of survey to get done... are you on the top floor? If so, it may be worth getting someone out to have a look at the state of the roof. That will be an incredible headache if it starts to leak

hazyjo

You know there's a middle option of a homebuyer's report? I would never buy anything without at least that.

The 'valuation survey' is very basic. Occasionally, just a drive-by 'valuation' to make sure the property's standing, in one piece, no obvious cracks in walls or holes in the roof. Will be a combination of that 'inspection' (might be that it was far more thorough, but would be nowhere near a homebuyer's report) and comparable evidence.

I would definitely want the property surveyed more thoroughly.

Also check things like whether you're 100% responsible for the roof.

Jx

lowlitmemory

nollag2006 wrote: »

I'd strongly counsel against buying above commercial premises. You will find it very hard to sell on.

I had a friend who bought a lovely big 3 bed flat above a fireplace shop in Richmond for his young family. It later became an "adult" shop. He has been trying to sell for the past couple of years, to no avail.

As for the issue of the type of survey to get done... are you on the top floor? If so, it may be worth getting someone out to have a look at the state of the roof. That will be an incredible headache if it starts to leak

Thank you, but we don't have a lot of options for our budget unfortunately. It's this, a 1-bed flat (which will not suit us at all) or something smaller on a dire council estate. So we will have to take our chances and like I say we're planning to stay a good while so we're not too worried about the resale for the moment. We can't change areas due to job and family situations.

Hazyjo - did not know that about the homebuyer's report. Will have a look around for someone to do that for us, thanks.

I don't think we are responsible for the roof but our solicitor will check for us. We are 1st and 2nd (top) floor so it sounds like it could be worth checking the roof anyway.

cattie

If you are 1st & 2nd floor, ask your solicitor to check if you will actually own the roof space. Very useful if you want to extend up there at some point in the future.

EastLondoner

We're FTB in the very same situation, but the Abbey turned us down for a mortgage on a flat in East London that sounds identical to yours as they don't lend on flats above shops anymore... We're trying with RBS now - fingers crossed - but do you mind me asking who your lender is? It's so nice to hear that someone else has managed to do it!

Uk_Lover

If you get a good surveyor then a homebuyers will do the job. Just had one done and it cost me £350. He invited me to be there when he did the survey (well worth asking if you can be present) and was very thorough, explained every little defect and gave me some sound advice. He was there for over 2 hours for a 2 bed flat. Obviously I was lucky to get such a good bloke and will use him in the future.

lowlitmemory

EastLondoner, we are getting our mortgage with Lloyds TSB. The shop we are above is a newsagents... they said they probably wouldn't lend if the flat was above somewhere with "unsociable use" e.g. a restaurant. Hope you find somewhere!

Uk Lover, any chance your surveyor is in London?!