Buying on designated flood plain

MoneyLosingExpert_2

I've recieved a homebuyers report on a 1st floor apartment I'm buying. It states that the property is on a designated flood plain. The building was flooded in the awful torrent of rain in late June (near Sheffield). I have looked into what it means to be on a flood plain and it states that the chance of being flooded is greater than 1 in 72.

My question is this, assuming that there is not another flood affecting the property, when I come to sell, will potential buyers be put off by the fact it is on a flood plain?

Guy_Montag

I would be

elite_2

I would be put off, and it would certainly affect the value of the property.

I appreciate it is 1st floor, but you would still have the problems of access etc if there is another flood

Guy_Montag

Is there room for an canoe in the property - that would help solve the access problem.

Badger_Lady

It will always affect the value, but you should be buying at a lower price to reflect this... in which case, it may take slightly longer to re-sell but you wouldn't make a loss on it.

More important in flood-risk properties is checking:
a) whether it's insurable (because otherwise it's un-mortgageable)
b) how much that insurance would be, and therefore whether you can still afford it.

Presumably you've got a reasonable knowledge of market values in your area, and how this one compares to non-flood-risk equivalents? Bear in mind that a lot of new-build developments (since 1980) are build on flood plains, but basically never actually flood.

First floor apartment - did the actual apartment get flooded in June, or just the building beneath it? Usually easier to keep dry than a ground floor one!

olly300

If the property is on the flood plain your service charges which includes building insurance will be high. It may not be high now but next April when all the insurance companies have hiked their charges it will be as the freeholder would have had to claim to rectify any damage.

High service charges put people off buying flats.

pinkshoes

i wouldn't touch a property on a flood plain, even if it's a non ground floor flat! Insurance will no doubt be steep (as mentioned by other poster), and then there's the access problems if it does flood...

if you really want it, then make sure you get it for a very low price!

Leighthal

I'm buying on a flood plain.But then again its in Lincolnshire,by the seaside,so difficult to avoid really.:D

MoneyLosingExpert_2

Badger_Lady wrote: »

It will always affect the value, but you should be buying at a lower price to reflect this... in which case, it may take slightly longer to re-sell but you wouldn't make a loss on it.


More important in flood-risk properties is checking:
a) whether it's insurable (because otherwise it's un-mortgageable)

Yes, its insurable. The buildings insurance is in with the maintenance charge of £500 a year (although I expect that to go up)
b) how much that insurance would be, and therefore whether you can still afford it.

I gather in my area that even if a building is not flooded, the insurance costs are going to go up anyway? Not sure, but its what I've been told. I will be working full time next year, so when the new maintenance charge comes in, I should be able to afford a hike if necessary.

Presumably you've got a reasonable knowledge of market values in your area, and how this one compares to non-flood-risk equivalents? Bear in mind that a lot of new-build developments (since 1980) are build on flood plains, but basically never actually flood.

The problem is, most apartments are new build around here and I'm finding it hard to find any that aren't on flood plains! It is only 5 years old.

First floor apartment - did the actual apartment get flooded in June, or just the building beneath it? Usually easier to keep dry than a ground floor one!

No the actual apartment was fine! Poor prospective neighbours got drenched though.

Badger_Lady

pinkshoes wrote:

i wouldn't touch a property on a flood plain, even if it's a non ground floor flat!

I wouldn't be that extreme about it - a huge number of houses are officially on flood plains now. Yes, insurance will be higher and value will be lower, but if you're buying it at the right price all this will be factored in.

I'm renting a 3-year-old house now which is officially on a flood plain - the whole estate is. And they're still building new houses and flats further down from me and selling them quite successfully. We didn't flood this summer.

And, equally, my sister has just completed purchase of a house built in the 80's on a clay flood plain - they got a bargain price for the area, which they're confident they can make back as profit when they sell. Their estate did flood a bit in July but their house stayed dry.

Remember, this has been an extreme year - the only way to ensure you're 99% safe from floods is to buy a 100-year-old house on top of a big hill.

Don't be scared off, MLE - just check that you're paying the right price and happy with the level of risk.

MoneyLosingExpert_2

Badger_Lady wrote: »

I wouldn't be that extreme about it - a huge number of houses are officially on flood plains now. Yes, insurance will be higher and value will be lower, but if you're buying it at the right price all this will be factored in.

I'm renting a 3-year-old house now which is officially on a flood plain - the whole estate is. And they're still building new houses and flats further down from me and selling them quite successfully. We didn't flood this summer.

And, equally, my sister has just completed purchase of a house built in the 80's on a clay flood plain - they got a bargain price for the area, which they're confident they can make back as profit when they sell. Their estate did flood a bit in July but their house stayed dry.

Remember, this has been an extreme year - the only way to ensure you're 99% safe from floods is to buy a 100-year-old house on top of a big hill.

Don't be scared off, MLE - just check that you're paying the right price and happy with the level of risk.

Thanks, one more question. The survey stated that a reasonable price for the property was £130k (which is what we have agreed at). Would this have included the fact it was on a flood plain etc and conclude it is still a reasonable price?