11 May First-Time Buyers Beware: 7 Key Checks Before You Buy
First-Time Buyers Beware: 7 Key Checks Before You Buy
The average age of a first-time buyer in the UK now stands at 32 years, a rise from 29 years a decade earlier. If you are determined to get your first foot on the property ladder, you’re certainly not alone, and reaching the financial position to finally make this happen is a huge deal. That said, buying your first flat is an important investment decision that you simply cannot afford to get wrong.
In this article, we’ll take a look at some of the pitfalls that you could encounter when looking for your first home. Assuming you have no professional experience of buildings and what could be wrong with them, it’s vitally important that you keep your eyes wide open to the possibility that there might be potential issues with the property you have your heart set on. It’s a classic case of buyer beware!
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Issues with damp and mould
When you arrange to view a property that could be of interest, make sure you look beyond the obvious questions of whether the flat is big enough or has all the features you require. Take the opportunity to get a first feel for its state of repair and overall condition. If there are damp patches on the wall, mould, condensation or a musty smell, it’s likely that there’s a damp issue. A surveyor’s report is the only way to confirm whether this is an ongoing problem you should worry about, or whether it’s a minor surface issue that you can simply decorate over.
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Cracks in walls or ceilings
The same goes for visible cracking on walls or ceilings. As a layman, chances are you wouldn’t be able to tell the difference between a harmless hairline plaster crack and a more sinister crack that indicates subsidence. Again, your surveyor should be able to put your mind at rest, or not as the case may be. Structural movement caused by subsidence is a major red flag for the mortgageability of the property and its future saleability. If you can see obvious large cracks, especially if they are wider at the bottom than at the top and they run diagonally down a wall, particularly around windows and doors, it’s vital to get them checked out.
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Problems with utilities
Don’t be naïve and assume that there won’t be any issues with the electrics, heating and plumbing. This is not something that a standard home survey will inspect, so keep your eyes peeled for signs of trouble when you are viewing the property and commission a specialist survey if you’re at all concerned. Upgrading or fixing dodgy utilities can be expensive, disruptive and messy, so make sure you run the taps and flush the toilet to check the water pressure, test light switches and verify that the fuse board is up to date, and take a look at the age, condition and service history of the central heating boiler.
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Excessive service charges
Moving on from any physical issues with the building, it’s time to consider your financial obligations under the lease. If you are buying a leasehold flat, you will have to pay an annual service charge to cover your share of the maintenance and upkeep of the building including the roof, communal areas and any gardens. There will also be ground rent to pay. Get your solicitor to take a close look at the Management Pack provided by the freeholder or their managing agent and find out exactly how much these bills are, and whether there’s a sinking fund to cushion the blow in the event of any unforeseen large expenditures. The continuing cladding crisis in the wake of the Grenfell disaster should be a stark reminder of the financially vulnerable position leaseholders can find themselves in.
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A short lease
The lease is the legal document that governs the ownership of your flat. Essentially, it means that you own the right to occupy the property for the number of years remaining on the lease. The number of years left is a key indicator and determinator of the value of your asset – the shorter the remaining lease term, the lower the market value. Short lease properties are those with less than 80-90 years left to run, which can make it difficult to get a mortgage. Even if you manage to find a lender, the future saleability of the property is heavily compromised, unless you obtain a lease extension from the freeholder, which can be expensive.
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Restrictive covenants and other rules
In addition to the tenancy term of the lease, the document also contains a set of rules that all leaseholders and occupants have to abide by to ensure the comfort, safety and enjoyment of
the property for all concerned. Common clauses and restrictive covenants you may come across include not being able to run a business from home, not subletting the property or using it as a holiday let, not being allowed to keep pets, and anti-social behaviour rules such as playing loud music. Make sure you know exactly what these restrictions are and whether they
could be a problem for your lifestyle and how you are planning to use the property.
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Unpleasant neighbours
Even with the most diligent surveyor and eagle-eyed conveyancer on your team, there’s one key element that is often completely overlooked: What are the neighbours like? If you’re buying a flat, there’ll be people living next door, and possibly upstairs or downstairs too, and getting on well with your neighbours can have a huge bearing on your quality of life. It may be a bit much to expect to find lifelong friendships, but you should do all you can to make sure the people next door won’t make your life a misery once you’ve moved in. Noisy children, barking dogs, loud music, antisocial hours – there are many potential conflict points that can turn your sanctuary into a living hell. View the property at different times of the day to get an idea of what happens there, and speak to as many neighbours as you can.