New Build - Searches/Surveys

[HungryHippos]

Looking for a little advice here, buying a new build property, my Solicitor has sent me a letter asking me about Searches/Surveys.

Searches

Because it's a new build plot they say I can do one of two things:

1. Complete a local search on my plot at a cost of £164.00
2. Take out local search indemnity insurance at a cost of £26.50

Apparently the indemnity insurance just means they use a previous search they've taken for the development, and I am covered if anything negative comes up had I taken an up to date local search of my own and found problems.

Surveys

They recommend getting in touch with a Surveyor if I want to complete my own Survey. Is this required so much for a new build property? I would definitely complete one if I was buying an existing property, but right now it's probably not even got foundations completed.

 

[HungryHippos]

Anyone?

 

[Maccapacca]

I'd get the proper searches done, if you need to claim against anything in the future any case won't be helped if you have short cut the process, also a survey should not be needed as I assume the property has 10 or 12 year NHBC guarantee or someone like Zurich and been built to building regs.

The only advice I would suggest is getting a independent snag list generated as soon as you are able to access the property which could be before you hand over.

Are you using the developers mortgage brokers / solicitors?

edit/ just thinking defiantly get the searches done, you want to know if the drainage / roads / paths have been adopted otherwise a big bill could be heading your way.

 

[HungryHippos]

I'd get the proper searches done, if you need to claim against anything in the future any case won't be helped if you have short cut the process, also a survey should not be needed as I assume the property has 10 or 12 year NHBC guarantee or someone like Zurich and been built to building regs.

The only advice I would suggest is getting a independent snag list generated as soon as you are able to access the property which could be before you hand over.

Are you using the developers mortgage brokers / solicitors?

edit/ just thinking defiantly get the searches done, you want to know if the drainage / roads / paths have been adopted otherwise a big bill could be heading your way.

Thanks for the reply.

Sounds like a plan, development will be in warranty with the developer for snagging for a while, and also covered by the 10 year NHBC warranty too.

I will get my own search done, what are the ramifications of these things not being adopted by the local council exactly? I have already been made aware that there will be a service charge of around £180 a year which is payable by everyone on the development for the upkeep of the grounds etc.

Agreed about Survey, didn't seem worth while considering it's not built yet.

Yes I am using the recommended broker and Solicitors from the developer. It seems much of a muchness, and there was some financial incentive to go with the Solicitors they recommended - I get £1k towards legal fees on completion.

Would you recommend anyone in particular for the snagging?

 

[BDEE]

Searches - YES

Survey - NO, but you will need to pay for a standard valuation for the mortgage lender, which they will arrange on your behalf and charge you for.

You may also be charged a "Re-Inspection" fee for a further valuation once it is built.

 

[Maccapacca]

I will get my own search done, what are the ramifications of these things not being adopted by the local council exactly?

Lots, 1) they won't be built to adoptable standards so will be of a lesser quality B) the upkeep will be by you which may be £180 now but in a few years when the bituminous macadam breaks up or the culverts block because the falls aren't correct they'll want more cash.

I have already been made aware that there will be a service charge of around £180 a year which is payable by everyone on the development for the upkeep of the grounds etc.

Check that, is it a management company or a residents association, a management company will fritter all your cash away on fees.

Yes I am using the recommended broker and Solicitors from the developer. It seems much of a muchness, and there was some financial incentive to go with the Solicitors they recommended - I get £1k towards legal fees on completion.

Hmmmm get an independent valuation on value of the property

Would you recommend anyone in particular for the snagging?

Yes me any local building surveyor http://www.ricsfirms.com/

 

[HungryHippos]

Thanks guys,

I will ask about whether it's a Management Company or a Residents Association. It sounds like Residents Association is better.

Would my local sales office for this development perhaps know if the drainage/roads/paths are being adopted by the local council or would this be the kind of thing I would only see in a search?

I will definitely get one done just I can talk to them sooner rather than later and see if they know.

Regards independent valuation, I would assume they would need to do so after the place is built? Would a building surveyor be able to do both the valuations and the snagging for me?

I have paid Nationwide around £400 for valuation already, which I guess they do as part of the mortgage process, but they would probably only be valuing it based on the building plans and the area.

 

[Jez]

The only correction i would make to the above is that the indemnity is all you need search wise. These policies are only offered if there are applicable searches already available, there is no point paying for them again.

You do not need a survey, the house will be covered by NHBC.

 

[HungryHippos]

Would it be better to go for the Indemnity route then, and ask for a copy of the pre-existing search the policy is based upon?

 

[BDEE]

The only correction i would make to the above is that the indemnity is all you need search wise. These policies are only offered if there are applicable searches already available, there is no point paying for them again.

You do not need a survey, the house will be covered by NHBC.

That's an opinion, not a correction.

 

[Jez]

Would it be better to go for the Indemnity route then, and ask for a copy of the pre-existing search the policy is based upon?

Indeed it would, you will of course get a copy of the existing searches, and be covered in the extremely unlikely event that anything has changed since they were carried out.

That's an opinion, not a correction.

No, it is a correction. He will be covered entirely, and will have access to the existing searches. Totally pointless paying again.

 

[Nexus]

I have already been made aware that there will be a service charge of around £180 a year which is payable by everyone on the development for the upkeep of the grounds etc.

£180 a year, that seems a bit cheap!

 

[BDEE]

Indeed it would, you will of course get a copy of the existing searches, and be covered in the extremely unlikely event that anything has changed since they were carried out.



No, it is a correction. He will be covered entirely, and will have access to the existing searches. Totally pointless paying again.

It depends how old the searches are. We will agree to disagree

 

[Jez]

It depends how old the searches are. We will agree to disagree

No we wont p), the indemnity insurance will not be offered by his solicitor unless the searches are sufficiently recent. My latest purchase the searches i could get hold within the places latest HIP were sadly slightly too old, so my solicitor insisted on new ones. If his has offered the insurance then he should take it up.

 

[HungryHippos]

I've spoken to the Solicitor, they don't believe any local searches have been done, the document they sent over actually states that the insurance provides cover in the event a previous local search is being used, or none at all!

They said they are checking with the developer to see if they have any records of any local searches on the development. If not then I will most definitely want to be carrying out a search.

 

[Jez]

Weird, i have never seen indemnity insurance which covers without a previous search. If there are none at all then i would assume that your solicitor will insist that they are carried out.