Valuation while renting quant property from public body

cryvate

Hi all,

First time poster.

I am currently renting a semi-detached cottage from a public body (which seems to be subsidiary to the council but is actually established by an Act of Parliament) and am interested in buying the property. The public body is interested in selling it (to us), and will start thinking about it formally soon. For them, and for me, it would be helpful to have a rough idea of the value of the property, especially as there are other parts of this plot of land we might be wanting to buy sooner rather than later.

I have tried reaching out to estate agents for a valuation but they do not seem interested (fair enough, they won't get money off me). It is a bit of a peculiar situation, because the property is also relatively quaint and so there will definitely be some red flags/problems with mortgage lenders that will come up and so I want to get ahead of that.

I have used Zoopla to get an estimate, I know how much I am paying in rent and I know the background of the property. There is a big difference between the rental multiplier and the Zoopla estimate. This property has never been sold and even the title is one big plot at the moment including stuff that cannot be sold as it has essential public infrastructure that cannot be moved. There are no "similar" properties nearby that I could base my price off, without knowing how to take into account differences and the property has never been sold (it was built by the public body to house their employees).

So my question is, what's the best way to proceed for me to get a (rough) valuation, I am happy to pay money for it? Other tips/thoughts welcome.

user1977

I think you'll need to clarify what you mean by "quaint"...

Sunsaru

Your best bet is to get a surveyor in to value it. Forget Zoopla, thats as accurate as sticking your finger in the air and guessing the temperature.

cryvate

user1977 said:

I think you'll need to clarify what you mean by "quaint"...

I didn't want to put it in the main body to distract from the main question:

• Not connected to water mains (borewell + sceptic tank)
• Central heating using heating oil
• Land around (and some of the garden) does very occasionally flood, but not the house (this was essential for their original purpose): it is elevated slightly
  
• It has a thatched roof
  

Besides that, it is in a relatively good state (insofar as I can tell) but it is old school: only one toilet, which does not have a sink, bathroom (without toilet) through the kitchen, decommissioned fireplaces in every room.

There will be issues that will require agreements/covenants:

• There is some infrastructure that would be on our land (so the public body will need access)
• Access to property is over right of way (good) but it is not a road (it's a footpath for everyone but those living here) and so our access will have to be made formal
• The borewell and sceptic tanks are on the other side of the cottage

cryvate

Sunsaru said:

Your best bet is to get a surveyor in to value it. Forget Zoopla, thats as accurate as sticking your finger in the air and guessing the temperature.

Would a surveyor be able to get an accurate value considering there are many things I cannot tell them? E.g. exactly when it was built, how big the plot of land is, ... I think the public body will be happy enough to help them, though I do not want to overburden them and keep them on our good side.

Can we do a double-whammy and save on getting a surveyor later when we get the mortgage, or is that unlikely? It might be a little while (~6 months) until I reckon we will be nearing completion as there are many things to sort out (see other post).

user1977

A surveyor can tell how big the plot of land is because they'll be standing in it. They never need to know exactly when a property is built, they can tell what era it is from looking at it. A lack of comparable properties does mean that the valuation will come with a larger margin of error than normal.

The only obvious red flag out of the "quaint" characteristics is the thatched roof, which I would expect to restrict mortgageability (and insurability).

(It's septic tanks, by the way...)

cryvate

user1977 said:

A surveyor can tell how big the plot of land is because they'll be standing in it. They never need to know exactly when a property is built, they can tell what era it is from looking at it. A lack of comparable properties does mean that the valuation will come with a larger margin of error than normal.

The only obvious red flag out of the "quaint" characteristics is the thatched roof, which I would expect to restrict mortgageability (and insurability).

(It's septic tanks, by the way...)

The thatched roof is a bit of a concern, but depending on the valuation and my budget/savings/employment + clean credit history it should not be a blocker from my research.

(Can I edit posts? Happy to correct it.)

AdrianC

cryvate said:

user1977 said:

I think you'll need to clarify what you mean by "quaint"...

I didn't want to put it in the main body to distract from the main question:

• Not connected to water mains (borewell + sceptic tank)
• Central heating using heating oil
• Land around (and some of the garden) does very occasionally flood, but not the house (this was essential for their original purpose): it is elevated slightly
  
• It has a thatched roof
  

Not on mains water or drains is not unusual out here in ruralshire. There's far more places on mains water, no drains, than without water - is there a main nearby? Ensuring safe potability from a borehole can be... challenging. Which, of course, means "expensive"...

Again, oil or bulk lpg heating is far from unusual.

As far as mortgage lendability goes - the flooding and roof may restrict the market to more specialist lenders, but won't be a showstopper. Same for insurance.

EVERYTHING can be valued more-or-less. You might just need to look a bit wider, and think a bit laterally in adjusting for various factors.

Ultimately, it's about coming up with a number that you and the vendor both agree on. If it takes hiring a mutually acceptable surveyor, or three, then so be it.

cryvate

AdrianC said:

cryvate said:

Not on mains water or drains is not unusual out here in ruralshire. There's far more places on mains water, no drains, than without water - is there a main nearby? Ensuring safe potability from a borehole can be... challenging. Which, of course, means "expensive"...

I do not think there is a main nearby: our cottage and the "office" (owned by the same public body) are the only civilisation this side of the tracks, though it is not *that* far too a town (about a kilometre, across railroad tracks).

Jude57

I agree with other suggestions to get a chartered surveyor to do the valuation. You might also want a structural engineer's report given all the potential issues you have identified. Both these professions will give a far more detailed report than a standard mortgage valuation, and as you're the client, you can instruct them to be as thorough as you wish. Naturally, these reports aren't cheap, but given that this purchase is likely to be a big investment for you, surely worthwhile, even if you eventually decide against. Local chartered surveyors or structural engineers will be familiar with the construction methods used locally.

See www.rics.org/uk
www.istructe.org/find-an-engineer

Section62

cryvate said:

I am currently renting a semi-detached cottage from a public body (which seems to be subsidiary to the council but is actually established by an Act of Parliament) and am interested in buying the property. The public body is interested in selling it (to us), and will start thinking about it formally soon.

What is happening with the other half, is anyone living in it? Are you planning to buy the whole building, or only the half you live in?

cryvate said:

Land around (and some of the garden) does very occasionally flood, but not the house (this was essential for their original purpose): it is elevated slightly

This is a bit of an alarm bell to me. If the use is/was something 'public', involves water, and established by Act of Parliament, then I have things like water works, sewage works, reservoirs, canals etc in mind.  Any of which (plus a lot more) could also pose risks of having contaminated land.

It is understandable you might not want to give more details here that could identify the location, but bear in mind the valuation and mortgageability will depend hugely on the nature of the (former) land use.

Other than that, you need to get a (paid for) professional valuation from someone with extensive experience valuing 'unusual' properties.  You may (with the current owners) need to get three valuations and compare them.

Also bear in mind that public* bodies have a legal duty to obtain good value for any assets they dispose of, and shouldn't sell property at less than the value which could be obtained on the open market. Before spending too much investigating this idea, it would be worthwhile considering whether those who have indicated an interest in selling actually have the authority to make that decision on behalf of the body, of if the idea will be rejected as soon as the 'real' decision makers are asked.  (*this includes quasi-public bodies)