Valuation nil due to building structural issues

Jenniefour

GDB2222 wrote: »

It's up to your sellers to find out what all this work will cost, not you. If I'm being uncharitable, they may already know, which is why they want to find a buyer to take their flat off their hands. It's going to be costly and very messy to do the work, so the flat needs to be *incredibly* cheap to make it worth your while even to consider taking it on.

That's what I'm wondering. Could well be a case of trying to get rid of it because vendor has got nowhere with trying to get the works done. It does happen.

That survey was money well spent, OP.

pineneedles

Thanks. The issues were not obvious to the untrained eye although we could tell the front of the building needed some cosmetic attention at least which should have been a pointer that perhaps more serious issues were also being ignored. I think I'll walk by there again and take a better look and try to see where exactly the serious crack is and what it looks like. Many properties we've seen are Victorian and in a slight state of disrepair but I guess we need to learn what looks serious and what doesn't.

Currently living in a pretty decrepit rental house with cracks left right and centre so probably a bit too used to ignoring them!

This was no bargain price and there were a number of other offers at asking price and I guess in the current climate our vendor has every hope of finding an investor who is willing to take the risk.

Jenniefour

Yes, some issues are not obvious - that's where a good surveyor comes in. The property may well sell - but more likely to someone who's up for a challenge and has deep pockets. Any other possible sale which involves a mortgage is going to hit on the same issues.

Look for the properties that have been well maintained. The outside is often (not always) a useful indicator of how seriously the freeholders take their responsibilities for getting repairs done ad keeping the building in good repair.

Feel free to give the EA the information from the survey about the structural issues and the 'nil' valuation. They need to know so other hopeful FTB's are not spending money only to find it's a no goer. Smart agents will then do some thinking about how this is marketed. This may well turn out to be a "cash buyers only" property.

bigadaj

I certainly would advise caution in these circumstances but let's remember the surveyor isn't an expert in structural or ground movement problems.

He has noticed something and reported on it, but you'd need a detIeld investigation by a structural engineer, and/ or a Geotechnical engineer, to provide a good understanding of what is actually happening.

This is really going to be something that the vendor is going to have to deal with or accept a very low price from a cash buyer who is happy to take a punt.

Causes for movement are fairly limited and with experience can be narrowed down pretty quickly when the property location is known, however it is certainly possible that underpinning might be needed, in which case a lot of repair works and cosmetic improvements would also be needed afterwards.