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Which RICS Survey Do I Need?

Posted on August 21, 2023February 6, 2025 by Thomas Awoleye

When embarking on the journey of buying a new home in the UK, understanding the condition of the property is vital. To ensure a smooth and informed house buying process, the Royal Institution of Chartered Surveyors (RICS) provides various survey options tailored to suit different needs and requirements. This includes a Level 1 Survey, a Level 2 Survey and a Level 3 Survey.

So, which RICS Survey do I need when I’m buying a new home? The survey you need to purchase a new home will depend on a variety of factors. This includes the property type and age, the properties current condition, and your desired budget for your survey.

To help you decide which survey is best for you, and to learn more about what the different levels of surveys offer, our experts at Crest Chartered Surveyors London have written this short guide for you to explore. Simply keep reading to learn more…

Why are RICS Surveys Important?

Before delving into the different levels of RICS surveys, it is essential to understand their significance in the property purchasing process. RICS surveys are conducted by qualified chartered surveyors, providing potential buyers with an objective evaluation of the property’s condition. They help identify potential defects, structural issues, and maintenance requirements that may not be apparent during a standard viewing. Armed with this knowledge, homebuyers can make informed decisions and negotiate the purchase price more effectively.

RICS Level 1 Survey: Condition Report

The Level 1 RICS survey, known as the Condition Report, offers the most basic level of survey and is suitable for relatively new or well-maintained properties. This survey focuses on providing a snapshot of the property’s condition, highlighting any evident defects and offering guidance on necessary actions.

The Condition Report covers essential elements such as:

Identifying significant issues affecting the property.
A traffic light rating system indicating the severity of defects (red for urgent, amber for potential issues, and green for no significant problems).
A brief overview of the property’s construction and key features.

Level 1 surveys are relatively affordable and ideal for buyers looking for a general overview of the property’s condition without extensive details.

RICS Level 2 Survey: HomeBuyer Report

The Level 2 RICS Home survey, commonly known as the HomeBuyer Report (HBR), is more comprehensive than the Level 1 survey. It is suitable for conventionally built properties in reasonable condition and is one of the most popular choices among UK homebuyers.

The HomeBuyer Report includes:

A thorough inspection of the property’s visible and accessible areas.
Evaluation of major elements, including roofing, walls, floors, and ceilings.
Identification of any significant defects, urgent problems, or potential risks.
An estimation of the property’s value.
Recommendations for repairs and ongoing maintenance.
Additional advice for legal advisors and insurance providers.

HomeBuyer Reports provide a good balance between detail and cost-effectiveness, making them an excellent choice for many homebuyers in the UK.

RICS Level 3 Survey: Building Survey

The Level 3 RICS survey, known as the Building Survey or Full Structural Survey, offers the most detailed and comprehensive assessment of a property’s condition. It is suitable for older or larger properties, those with unusual construction, or properties that have undergone significant alterations.

The Building Survey includes:

A comprehensive inspection of all accessible areas, including concealed spaces like attics and basements.
Thorough evaluation of the property’s structure, materials, and construction methods.
In-depth analysis of potential defects, including subsidence, damp, and rot.
Detailed advice on repairs, maintenance, and future considerations.
Estimated costs for necessary repairs and renovations.

The Building Survey provides buyers with a comprehensive understanding of the property’s condition, offering peace of mind and confidence in their purchase decision. However, it is also the most expensive survey due to its extensive scope and level of detail.

How Do I Know Which RICS Home Survey Is Right For Me?

When buying a new home, it is crucial to know what type of survey you need to gain a comprehensive understanding of the property’s condition. A survey conducted by a qualified chartered surveyor can reveal potential issues and defects that may not be apparent during a regular viewing. Understanding the various survey options available will help you make an informed decision, ensuring a smooth and confident house buying process.

Factors to Consider:

Property Type and Age: The age and type of property you are considering will significantly influence the type of survey required. Older properties, those with unique construction, or listed buildings often demand a more detailed assessment, such as the Level 3 RICS Building Survey.
Property Condition: If the property appears to be in good condition and relatively new, a Level 1 RICS Condition Report may suffice. This basic survey provides a snapshot of the property’s condition and highlights any evident defects.
Budget: Consider your budget for the survey. The Level 2 HomeBuyer Report is a popular choice for many buyers as it strikes a balance between detail and cost-effectiveness, making it suitable for most conventional properties.
Risk Tolerance: Assess your risk tolerance as a buyer. If you prefer a comprehensive evaluation and want to be aware of any potential hidden issues, investing in a Level 3 Building Survey might be the best option for peace of mind.
Renovation Plans: If you have extensive renovation plans for the property, a more detailed survey would be beneficial to understand the full extent of work required and potential costs.
Surveyor’s Recommendation: Rely on the expertise of a qualified and experienced chartered surveyor who can visit the property and advise on the most appropriate survey based on its specific features and condition.
Lender’s Requirements: If you are obtaining a mortgage, your lender might have specific requirements for the type of survey they need to approve the loan. However, keep in mind that their required basic mortgage valuation is not a comprehensive survey.

Home Insurance Requirements: Some insurance providers might require a specific level of survey to ensure coverage for certain issues.

Get Help With Your Survey From Crest Chartered Surveyors

RICS surveys are an indispensable part of the UK property buying process. They offer valuable insights into a property’s condition, enabling prospective homeowners to make informed decisions and negotiate effectively. The three main levels of RICS surveys – Level 1, Level 2, and Level 3 – cater to different needs and budgets, providing varying levels of detail. When selecting a survey, consider the property’s age, size, and condition, and consult with qualified surveyors from Crest Surveyors to ensure you choose the most appropriate survey for your unique requirements. Armed with a comprehensive survey report, you can embark on your house buying journey with confidence and peace of mind. To learn more, contact one of our helpful team members today.

Should I Extend My Property Lease?

Posted on August 21, 2023February 6, 2025 by Thomas Awoleye

If you own a flat or property where you are required to pay ground rent, then you’ll be in a leasehold agreement. As an owner of the property, there may come a time when you’re required to extend your property lease to avoid the risk of seeing the agreement expire. While this sounds easy in principle, the process can be costly and complicated, and the timing needs to be right to avoid extending it too late.

So, when should you extend your property lease to avoid these uncertainties? The general rule of thumb is that you ideally need to consider extending your property lease around 80 years before the agreement is due to expire. If you leave this any later than 80 years, then you risk the cost of extending your lease dramatically increasing.

While there are currently ongoing discussions in Parliament to decrease these unfair costs, no law has yet been approved to protect homeowners. So, when you purchase a leasehold property, you ideally need to be aware of how long you have left on your agreement. If you’re approaching the 80-year mark on your lease, then it’s time for you to explore your options before it’s too late. To help you better understand the whole process and why it’s important, the helpful experts at Crest Chartered Surveyors in London have put together this short guide for you to explore.

Is It a Good Idea to Extend a Lease?

As a property owner with a leasehold agreement, you may be concerned about the amount of time remaining on your contract. This is because the leasehold dictates whether or not you can live in the property. While you own the flat or the internal space, you do not own the building. Once your leasehold agreement expires, you no longer have the legal right to live on the property, so it’s important to make sure there is enough time within your agreement to cover your lifetime.

Not only that, but the value of your property can decrease if your lease has a short time remaining. Typically, the value starts to decrease if there’s less than 80 years before it fully expires. When this starts to happen, it may also become more difficult to mortgage your property, as lenders will become concerned about the value decreasing and will factor this into their assessment. For this reason, if you are in this position, you must use a registered Chartered Surveyor to provide an accurate property valuation.

On the other hand, if you’re looking to sell your property, this can also become more difficult if there is not sufficient time remaining on your leasehold agreement. Prospective buyers may not consider the property as good value for money if the lease does not cover the next 80 years at a minimum. So, if your agreement is less than 90 years old and you’re considering selling your property, then exploring your options for extending your leasehold is valuable for you.

When Should I Consider Extending a Leasehold Agreement?

You can only consider renewing your agreement if you’ve lived in the property for longer than 2 years, and have at least 21 years remaining before the contract expires. Alternatively, if you have owned the property for less than 2 years, you can negotiate an informal agreement with your landlord. To do this, you will need the help of both your chosen Chartered Surveyor to ensure property costs are correct, and a solicitor to navigate the informal agreements.

What Is the Leasehold Extension Process?

When it comes to extending a leasehold, you have two different options. The first is the full Statutory Lease Extension Process, which enables a homeowner to extend the lease using the Leasehold Reform Act 1993. Here, you can extend your lease by no more and no less than 90 years.

The second option is the informal extension process. This option can be risky, but you’ll be provided with the opportunity to negotiate and agree to a deal between you and your freeholder. One downside of this option is that it’s likely that you’ll continue to pay ground rent, whereas all extensions using the Statutory option will have their ground rent removed. However, this choice can be quicker and cheaper than the formal route.

What Are the Cons of Extending a Leasehold?

As with any process, there are advantages and disadvantages to extending your leasehold agreement. These can vary depending on whether you choose to go down the formal or informal agreement route. But before we get into that, there are common disadvantages that can apply to both. These disadvantages include:

The process can be expensive. A landlord can request that you pay their legal fees as well as your own.
There is no point in extending your lease if you already have over 90 years left on your current one, unless you want to explore your options on how to get rid of your ground rent.
The process can be slow, as landlords are not currently held to strict deadlines to act to renew your lease.

If you go down the formal Statutory route for extending your leasehold agreement, there are some cons to consider. The first is that the process does take longer compared to informal agreements, and the cost is usually higher. Your chosen solicitor should work with you to reduce the time and costs, especially as landlords have previously been known to make the process go on longer by not responding quickly.

The informal route isn’t always the perfect choice. If you believe this method is best suited for your scenario, then it’s important to consider any new damaging clauses that can be introduced in your lease from your landlords. Your landlord may choose to do this if your lease is below the 80 year rule, making it more difficult to negotiate new terms. Similarly, your landlord is in a position to walk away from negotiations at any time. For this reason, the statutory route is always recommended if your lease is approaching 80 years until expiry.

Receive Help With Your Lease Extension Process With Crest Chartered Surveyors in London

To ensure that your lease extension process runs smoothly, it’s important that you seek the help of a professional chartered surveyor, and a solicitor. At Crest Chartered Surveyors, we’re able to provide a reliable and affordable service to assist you with your property valuations during your lease extension. We specialise in London and the surrounding counties, offering a quick, trustworthy and friendly service that supports your requests. For more information, simply get in touch with one of our helpful advisors, and we’ll be happy to help.

Will House Prices Drop Before 2024?

Posted on July 31, 2023February 6, 2025 by Thomas Awoleye

With interest and mortgage rates constantly changing, it can be extremely difficult to know whether house prices are lower or higher than usual. In this blog, Crest Surveyors clarify this by exploring whether house prices will drop before 2024 and why we may notice a change in property costs.

So, will house prices drop before 2024? Yes, house prices are expected to drop by 2024. Generally, the housing market is slowing, with property prices falling from their peak levels. However, predictions of a dramatic price fall in housing costs are yet to materialise.

Keep reading to find out more about UK housing prices and what reliable sources have to say about these costs.

What Is Happening To UK House Prices?

The general consensus among banks and property websites is that house prices are now falling. Since the pandemic, house prices have begun to decrease; however, they are still very high by historical standards and have been rising much faster than wages. The average price of a UK home has nearly tripled since the turn of the century. According to Nationwide Building Society, prices have increased by more than 60% over the last ten years.

On the surface, it appears that the main long-term driver has been supply and demand. A shortage of housing stock and high demand for properties has hugely affected prices. On top of this, low interest rates have also been powering the housing market for years. People used to be able to afford mortgages because they could borrow cheaply, however this has now changed because interest rates are rising. Since December 2021, the Bank of England has increased the base rate 13 times from its record low of 0.1% and now sits at 5%. This has been in response to soaring inflation.

Below, we have collated data from various banks and housing websites to highlight how house prices are falling:

Halifax

The Halifax house price index published on 7 June showed that average house prices fell 1% from the beginning of the year to May. This was the first annual decline in house prices since December 2012.

Rightmove

Rightmove’s latest data showed a fall in asking prices, with the average price of UK asking prices hitting £372,812 (a fall of £82). Not only was this the first monthly drop in asking prices this year, but it is also the first drop seen in the month of June since 2017.

Nationwide Building Society

Nationwide’s house price index recalled that house prices had fallen by 3.4% from the beginning of the year to April 2023, the biggest annual drop since 2009.

Zoopla

Zoopla’s May 2023 house price index showed UK prices had fallen by 1.3% over the past 6 months. It also indicated that prices are no longer falling as quickly as they were at the end of 2022, with buyers seeming to regain some confidence.

This data shows that the average price of UK properties sold hit a record of £372,894. It also shows that house prices were 1.5% higher than they were in the same month of 2022. According to forecasts from the Office For Budget Responsibility (OBR), house prices could fall by 10% over the next two years.

How Are Mortgage Rates Affecting House Prices?

Higher mortgage rates have made it more expensive to purchase a home. Subsequently, the housing market has taken a knock, with prices falling for four months in a row. There was more demand for property buying at the start of 2023 following a fall in mortgage rates from their October peak; however, prices have been falling ever since.

In 2023, further rate rises are expected. This could seriously dampen the housing market because it means mortgage repayments will increase. The biggest cause of a slowdown in the housing market is most likely down to the cost of living crisis. Sadly, as household budgets come under pressure, fewer people can afford to stretch themselves to buy homes. This in turn, will discourage first-time buyers, thereby directly impacting the housing market.

Have House Prices Already Dropped?

In March 2023, Nationwide Building Society, the timeliest source of actual house prices in the UK, recorded an -0.8% fall in house prices. This was a larger-than-predicted monthly decline. Annually, house prices are now 3.1% lower than the same time last year.

Are There Regional Variations In House Prices?

There are many regional variations in property prices, with specific areas seeing different levels of growth. According to Nationwide Building Society, all four nations within the UK saw a clear decline in house prices in the first three months of 2023. Here is a list of the data collected:

Northern Ireland – fell by 1.3%
Wales – dropped by 1.7%
England – fell by 1.9% (East Anglia being the region with the biggest decline)
Scotland – suffered the biggest decline with a drop of 2.3%

How Do Prices Differ For Different Types of Property?

The pandemic caused extreme shifts in housing preferences, with mortgage lenders continuing to see differences in price trends between property types. Prices of detached, family homes are growing much faster than flats. We think this is because many people are still working from home a few days a week and therefore require properties with more space. Figures from Nationwide Building Society show that the average price of:

A detached property increased by 5.9% in 2022.
Flats increased by 2.1% in 2022.

What Are The House Price Predictions For 2024?

Generally, due to high inflation and interest rates, housing prices are predicted to fall before 2024. In March 2023, the Office for Budget Responsibility (OBR), the government’s independent forecaster, predicted that house prices would fall 10% over the next two years. It argues that property transactions are expected to drop 20% over the same period, caused by the rise in mortgage rates and the squeeze on household incomes.

RICS Property Valuations With Crest Surveyors

Our RICS property valuation at Crest Surveyors includes a visual inspection and detailed analysis of a property by RICS Registered Valuers, followed by a detailed report highlighting the findings.

We boast of a team of highly experienced and qualified surveyors that compile impartial reports, providing you with the most accurate view of your property. We are also proud to offer our clients high-quality services that exceed the traditional valuation services.

Get in touch with one of our experts today to find out more about our RICS property valuation services.

What is a Ground Rent Assessment?

Posted on July 31, 2023February 6, 2025 by Thomas Awoleye

In this blog, Crest Surveyors discuss ground rent and everything that it covers, from what it includes to why and when you should pay. We’ll also highlight where to find any key information you may require to understand the process better and delve into some of the newer legislation surrounding ground rent.

So, what is a ground rent assessment? Ground rent is the rent you have to pay the freeholder or landlord of the property you own a long lease on. If the ground rent is subject to a review and the landlord and tenant are unable to agree on the new ground rent, this is where an assessment comes in. Either party has the right to make an application to RICS DRS to appoint a dispute resolver.

Keep reading to find out more about ground rent and the difference between leasehold and freehold properties.

What Is Ground Rent?

If you own a long lease on a property in England, Wales or Northern Ireland, there is a good chance that you’ll have to pay rent to the freeholder or landlord of the property. This is known as ground rent. In other words, ground rent is a fee charged on leasehold properties as a condition of your lease for the land your home is on. The cost of ground rent will vary depending on the type of property. It can be a fixed cost, which means it will stay the same throughout the term of the lease or it can be escalating which means it will increase by set amounts.

Types of Ground Rent

There are two basic types of ground rent:

Fixed ground rent – remains the same during the term of the lease period
Escalating ground rent – will increase during the term of the lease period

Your lease agreement must provide the following details:

The term of the lease
Type of ground rent
The amount you will pay
If it’s escalating when it will increase and by how much

Why Do You Pay Ground Rent?

If you’ve ever wondered whether you need to pay ground rent, we’ve got you covered. You are required to pay ground rent if you own your home as a leaseholder but you do not own the land on which your property sits. As of 2020, around 4.5 million households in England and Wales own their homes on a leasehold basis. Ground rent is paid annually to the freeholder of the property, which is often an investment firm, which grants you the right as the homeowner to live there on the terms of the lease.

Before you have to pay any kind of ground rent, the freeholder has to formally ask you the following correct procedure:

Your name
The period the demand covers
How much you have to pay
The name and address of the freeholder
The name and address of the managing agent if payment is made to them
The date when payment is due

Remember – The request has to be in writing and include all of the above information, otherwise the demand could be invalid.

What is Included in Ground Rent?

In most cases, the lease will outline exactly what is and isn’t included in the ground rent but they typically include:

Any maintenance and repair of the structure of the building and any common parts (like guttering)
The cost of the building’s insurance and maintenance of any communal ground or private accessways

How Much Ground Rent Will You Need To Pay?

The amount of ground rent you’ll need to pay will depend on the type and location of the property however, it is usually affordable. For example, ex-local authority flats will typically cost around £20 to £50 per year whereas private flats range between £150 to £600 per year.

Interestingly, there is also something known as a ‘peppercorn’ rent where historically freeholders would ask for a peppercorn to enforce the terms of the lease and make it legally binding. The term ‘peppercorn rent’ now applies to a very low or nominal amount of ground rent. Anyone who has owned their property for two or more years can also receive a lease extension of 90 years and be entitled to a peppercorn ground rent under the Leasehold Reform, Housing and Urban Development Act 1993. Under this negotiation, the amount of ground rent will be up for discussion.

More often than not, leaseholders pay ground rent every three to six months or once a year.

Can Ground Rent Be Reduced?

Whilst ground rent isn’t usually reduced, you may be able to become a freeholder depending on your particular circumstances. If you live in a flat, at least half of the other leaseholders will need to buy the freehold of the building to make this possible.

If you are instead interested in buying a share of the freehold, it is best to seek legal advice as it is such a complex process.

Difference Between Leasehold and Freehold

Whilst differentiating between these terms can seem complicated, in fact, they both have simple meanings:

Freehold – You own the property and the land it’s built on for as long as you want.

If you own a freehold property, you own the house and the land it’s built on. There are no leases to consider and you do not have to pay any ground rent or maintenance fees. This is the most common way to buy a house in the UK.
If you live in a leasehold property but are wanting to buy the freehold, you can ask the landlord to see if they will sell it to you.

Leasehold – You own the property for a set period, but not the land it’s built on.

Leasehold is where you buy the property but not the land it sits on. The land itself is still owned by the freeholder, who is selling the property for a set period of time.
Leaseholds usually last between 125 and 999 years however, you may be able to extend how long you own it for.
After you’ve owned a property for two years, it is your right to request a lease extension of up to 50 years. (Bear in mind that there may be a charge to extend your lease).

The Ground Rent Scandal

In recent years, it’s important to mention that there has been a problem with rising ground rent costs. It would seem that freeholders have realised the potential for an additional revenue stream. This is a particular problem for new builds where increasingly high ground rents are becoming common.

Some ground rent costs are simply already high or clauses in some leasehold contracts set the ground rent to increase (in some cases, double) over a set period. This means that the cost of ground rent can quickly reach the thousands which is a huge problem. Predictions from 2017 suggest that ground rent for some houses could reach as much as £10,000 a year by 2060. These costs impact homeowners significantly as they become trapped in contracts with ground rents spiralling out of control.

On top of this, these homeowners then often struggle to sell their homes because conveyancing solicitors will warn their prospective buyers off buying these leasehold properties. As a result, sellers are often forced to cut the cost of the property to encourage a sale.

According to trade body NAEA Propertymark:

57% of leasehold house owners didn’t understand what being a leaseholder meant until they had already purchased the property
62% of leasehold homeowners feel like they were mis-sold
48% of leasehold homeowners were unaware of the escalating ground rent

Unsurprisingly, all of these frustrations have led to 94% of leasehold homeowners regretting buying a leasehold.

Tackling Rising Ground Rent Costs

In order to tackle these challenges, the government pledged to end unfair leasehold practices in December 2017. This commitment included a proposal to ban the sale of long leases on new build properties and to reduce ground rents on new leases to a peppercorn rent.

Since then, there’s been a number of consultations and the government is still planning to implement changes to the law to make owning or buying a leasehold a better experience. However, this is only limited relief to those already trapped in leases which is why the government and homeowners have increasingly put pressure on developers who sold onerous leases.

RICS Property Valuations at Crest

Here at Crest Surveyors, we offer a visual inspection and detailed analysis of a property by RICS Registered Valuers, followed by a detailed report highlighting the findings. The purpose of this is to ascertain the property’s market value or to determine how joint assets would be shared upon sale of the property.

Our team of highly experienced and qualified surveyors will compile impartial reports to provide you with the most accurate view of your property.

So, get in touch with us today to find out more about our RICS property valuation services or to speak to one of our experts.

What Is Staircasing in a Help to Buy House?

Posted on June 7, 2023February 6, 2025 by Thomas Awoleye

Help to Buy and Shared Ownership schemes can sometimes be over-complicated with different terminology. Staircasing is one of the terms that some people struggle with, and a lot of the rules and regulations surrounding it can be equally confusing. Luckily, once the information is broken down it becomes much easier to understand.

So what is staircasing in a Help to Buy house? In a Help to Buy scheme, staircasing is the term used for buying more shares in the property. Buying more shares means that you’ll pay less rent on the ones that you don’t own. You’ll potentially be able to reach 100% of the total shares and own the property outright.

Read on to learn more about staircasing, how many shares you can buy, whether you need a deposit, and what a Shared Ownership valuation is.

What Is Staircasing?

If you’ve purchased your home through a Help to Buy or Shared Ownership scheme, you can usually choose to buy more shares in it after you’ve lived there for a certain amount of time. This is what’s referred to as ‘staircasing’. These payments can be made either from your savings or through the help of a mortgage.

The advantage of this is that when you buy more shares, you’ll pay less rent. This is because the amount of rent that you pay will be based on the landlord’s share of the property. If you manage to staircase your way all the way up to 100%, you’ll own your home outright and won’t have to pay rent anymore.

How Many Shares Can I Buy?

The maximum share is 100%, at which point you own the property outright. However, in some places called ‘designated protected areas’, you might only be able to buy up to 80%. These areas were set up to ensure that rural affordable housing remains in the ownership of local people. There are also Older Persons Shared Ownership (OPSO) homes where the maximum share is 75%. With this, you’ll never outright own the property, but once you reach 75% you won’t have to pay rent on the rest.

There is a minimum amount of shares that you can buy in one go. This is dependent on when you bought the property and what your contract says – so ask your landlord if you’re unsure. We’ve broken down the minimum share amount for each purchase below:

5% Or More

In the majority of cases, you’ll be able to buy shares of 10% or more at any time. In some older leases, you may only be able to buy shares of 25% or more, and in newer leases you might be able to buy shares of 5% or more. As mentioned above, all of this is dependent on when you bought the property and what you agreed to in your contract, so be sure to read that before doing anything.

Shares of 1%

If you purchased your home on or after the 1st April 2021, then for the first 15 years you might be able to buy shares of 1% a year. Speak to your landlord to find out if this applies to you. This only applies to shares of 1% and you’re unable to buy shares of 2%, 3%, 4%.

Before you purchase a Shared Ownership home, you should always ask the landlord for all of the important information regarding share amounts you’ll be able to buy in the future. This should be in the ‘key information document’ that will be provided before you buy the property.

Do I Need a Deposit for Staircasing?

You don’t need to wait until you can save up for a deposit so that you can mortgage more shares because you can use your existing equity in your share of the property to act as a deposit. If you do have savings then an effective way to buy an even bigger share is to combine them with the equity in your home, this will allow you to staircase faster and pay less rent in the meantime.

What Is a Shared Ownership Valuation?

A Help to Buy valuation is needed when buying more shares or selling a home bought via the Help to Buy scheme. The purpose of getting a valuation is to assess the market value of the property at the time, because since you initially bought the property the value is likely to have changed. There are certain conditions that need to be fulfilled when carrying out a Shared Ownership Valuation:

The valuation must be carried out by a Royal Institution of Chartered Surveyors (RICS) Registered Valuer.
The valuer must be independent of an estate agent.
The valuation report must be on headed paper, and must also be signed by a RICS Registered Surveyor.
The valuer must provide at least three comparable properties and sale prices.
The three comparable properties must be similar in terms of size, age, type, and must be within a 2-mile radius to the property being valued.
The valuer must not be in any way related or known to the client.
The valuer must inspect the property interior, and provide a full valuation report.

Once the valuation has been completed, you will receive a completed report. The report will include a thorough room inspection with photographic evidence, details of the properties condition and any defects. You’ll also receive details of any nearby properties that have been sold in the last 12 months and information about the location and surrounding area.

Shared Ownership Valuation With Crest Surveyors

Our helpful and experienced team of RICS qualified surveyors are ready to help you on your journey to buying or selling your property. We offer affordable service around London and the home counties, with a quick and reliable service to help you through the process.

To learn more about our Shared Ownership Valuations, simply get in touch. Or for more information on the services we have to offer, visit our website.

How Much Does a Lease Extension Cost?

Posted on June 7, 2023February 6, 2025 by Thomas Awoleye

If the lease on your property is starting to get low, you may want to consider getting a lease extension. Understanding how lease extensions work can be very daunting for most people because they are so complex, but there’s no need to worry! In this blog, we’ll explain how much it costs to get a lease extension and why you should consider getting one before it’s too late.

So, how much does a lease extension cost? The cost of a lease extension is split into three parts; the premium, the freeholders ‘reasonable fees’ and your own costs. It’s therefore extremely difficult to specify exactly how much a lease extension will cost because it depends on different factors as well as an individual’s unique circumstances.

Keep reading to find out more about the costs of a lease extension and where to find any important information you may need.

Lease Extension Costs

With more than 4 million residential properties in the UK owned as leaseholds, it’s easy to see why so many people want to know how much it costs to extend a lease. Extending your lease is an investment in your home because it can increase the value of your property more than the cost of the lease extension itself.

You can either pay for the cost of the lease extension out of your savings or, in most cases, your mortgage lender may be willing to extend your mortgage to pay for the lease extension.

The cost of a lease extension is split into three parts:

Part 1: The Premium

The premium is the amount you have to pay your freeholder to extend your lease. This cost is negotiated with your freeholder as part of the process however, it is roughly based on a formula. This means that the freeholder cannot simply name their own price. The day the lease on your property drops below 80 years, you’ll be required to pay an extra cost as part of the premium – this can be very expensive. For this reason, at Crest Surveyors, we recommend that property lease extensions are carried out sooner rather than later.

For example, for a £200,000 property with 90 years on the lease, the premium could be around £3,000.

Remember – Freeholders will often start with very high prices, but this can always be negotiated down so no need to panic!

It’s also important to know that calculating a lease extension premium is very challenging because it depends on various factors, such as:

The value of the leased property
The duration left on the lease
The annual ground rent
The value of any improvements conducted by a leaseholder
External factors like current rate of return on investments

As a result, we suggest that you find experienced lease extension surveyors registered with The Royal Institution of Chartered Surveyors (RICS). At Crest Surveyors, all of our lease extension surveyors are members of the Royal Institution of Chartered Surveyors and offer years of experience and knowledge across a range of valuations.

Part 2: Your Freeholder’s ‘Reasonable Fees’

Because you are obliging your freeholder to give you a lease extension, the law insists that you pay their fees. These include their valuation fee and legal fees.

For a low-value property with a lease over the 80 year mark, this may be a few hundred pounds, whereas high-value or short-lease properties may be more. If the freeholder tries to charge too much, it is fairly easy to challenge them to keep these costs down.

Part 3: Your Own Costs

When you carry out a lease extension, you need someone to do the legal work to ensure that you get the best deal on the premium. You’ll also want someone to do a valuation and negotiate fiercely with a freeholder. It is therefore strongly recommended that you hire a specialised lease extension solicitor and surveyor to help with these negotiations:

Lease extension premium
Marriage value – a leasehold’s marriage value is calculated by taking the amount the leasehold increases in value following the extension and splitting it in two.
Land registry fees
Freeholder’s legal and valuation costs
Leaseholders legal and valuation costs

In some cases, you might need to apply to a tribunal to get them to decide how much your premium should be. This does cost more but it is fairly unusual because freeholders are required to pay too.

Leasehold property explained

In the UK, there are two ways property is normally owned. These include:

Leasehold

This type of property is held by a lesse, who has bought the right to use it exclusively for a certain period of time from a freeholder.

Freehold

This type of property is held directly and unconditionally from the crown.

The defined duration in which a leaseholder has an interest in a property is known as the term of the lease. This can be anything from 999 years, though normally it is less and is often set at 125 years.

When Can You Extend a Lease?

Lease extension is possible in the UK due to the legislation brought in as part of the 1993 Leasehold Reform and Urban Development Act. A leaseholder is considered eligible for lease extension after they have leased the property for two years or more.

Following the act, if a property’s original lease term was longer than 21 years, it is legally considered a long lease. The lease can be unilaterally extended by an eligible leaseholder in exchange for a payment to the freeholder.

This means that an eligible leaseholder does not need the freeholder’s permission to have their lease extended.

When Should You Extend a Lease?

If you can afford to, it is a good idea to extend your lease when there are just 60 years or less left on it. This is because it will increase the property’s resale value. If you can, you should try and extend your lease well before this point.

If things go well, extending a lease can take between three months and a year so make sure that you start extending your lease well before the 80 year mark.

How Much Can You Extend a Lease By?

Eligible leaseholders are entitled to buy a lease extension of:

90 years if they own a flat
50 years if they own a house

Currently, this is the only amount lease can be extended by, however changes are being planned to allow homeowners to buy up to a maximum 990-year extension.

Why Should You Extend a Lease?

Extending your lease is a great idea because it:

Increases your property’s value
Gives you the certainty of being able to stay in the property for the long term
Makes a property easier to sell
Reduce your ground-rent to £0

Why Choose Crest Chartered Surveyors For Your Property Lease Extensions?

If you’re looking to begin the process of extending a lease, our experienced lease extension surveyors will conduct a professional lease extension valuation on your property before negotiating a lease extension agreement with your freeholder. Here at Crest Surveyors, we know how daunting the lease extension process can be. That’s where our trained, knowledgeable surveyors come in.

Here are some reasons why you should choose Crest:

100% success rate on property lease extensions
Low premiums on lease extensions
All of our lease extension surveyors are members of the Royal Institution of Chartered Surveyors (RICS)
We provide the quickest and most cost-effective solutions for your individual needs

Property Lease Extensions with Crest Chartered Surveyors

Now that you know everything there is to lease extensions, from costs to benefits, take a look at Crest Surveyors property Lease Extensions.

Here at Crest, we believe that lease extensions are one of the best investments you can make on your property. If you want to increase the value of your property whilst making it easier to sell in the future, you may want to consider getting a property lease extension.

Get in touch with our experienced lease extension surveyors by filling in this form or give us a call on 020 3940 1118 to make a booking.

Can a House be Sold for Less Than Probate Value?

Posted on March 30, 2023February 6, 2025 by Thomas Awoleye

If you’ve recently lost a loved one, you may be dealing with a number of confusing legal and financial situations. One such situation may be the valuation and selling of their property. In this blog we aim to lessen the confusion and provide you with everything you need to know about probate and what happens if you sell the property for more or less than probate value. We’ll also explain whether or not you need probate in the first place.

So, can a house be sold for less than probate value? Yes, a house can be sold for less than probate value. In these circumstances, a refund in any overpayments of inheritance tax may be granted. If a house is sold for more than probate value, HMRC may get involved and issue higher inheritance taxes or capital gains tax.

Read on to learn more about valuing a house for probate and what happens if a property is sold for more or less than probative value.

What happens if a house sells for less than probate value?

Properties sold for less than their probative value may be entitled to a refund in any inheritance tax overpayment. However, this is not guaranteed and can only be claimed if the property is sold within four years of the deceased’s passing.

Currently, if a property is passed on to a direct descendant or a spouse (a child or grandchild), a nil-rate band applies. This means that inheritance up to the value of £500,000 can be passed down tax-free, or £1 million for a married couple. An additional residence nil-rate band may also apply to protect the family home from inheritance tax, up to £175,000.

What happens if you undervalue a property for probate?

If a property is undervalued for probate, HMRC can impose penalties and additional tax liabilities. It is important to ensure that probate valuations are reported accurately as any discrepancies are likely to be investigated.

If a professional valuer was used to determine probate value, the estate’s representatives or family will be protected from liability from such penalties. However, for the valuer, there are different levels of penalties depending on the inaccuracies of reporting:

- If the error is due to lack of reasonable care, the penalty will be between 0% and 30% of the extra tax due;

- If the error is deliberate, the penalty will be between 20% and 70% of the extra tax due;

- If the error is deliberate and concealed, the penalty will be between 30% and 100% of the extra tax due.

What happens if you sell a property for more than probate value?

If, for whatever reason, the final sale price is higher than probate value the following can occur:

- HMRC may increase the inheritance tax owed. This can be challenged via the District Valuer, but is often a time-consuming and stressful process.

- You could be liable for capital gains tax.

Can a house be sold without probate?

You cannot sell a house without probate. You have no legal authorisation to sell a property until probate is granted, unless your name is already on the title deeds; for example, in the case of a spouse.

You can go ahead and put the property up for sale and even accept offers before probate is granted, however, you cannot complete the sale until you receive probate.

Doing so may create a range of financial issues in relation to inheritance tax, probate fees, maintenance costs and more, all of which can be reclaimed from the cost of the estate upon sale.

What’s the difference between probate value and market value?

Generally speaking, probate value is the value of an estate as determined by HMRC guidelines. It typically includes everything the person owned at the time of their death, minus any debts owed. This will usually include their property(ies). Market value is the value that an asset may expect to sell for on the open market, i.e. by an estate agent.

Learn more about this in our detailed blog, What is the difference between market value and probate value?, where we go into more detail about each type of valuation and when they should be used.

How to arrange a probate valuation

It’s best to contact a specialist probate surveyor to ensure that the correct value of the property is determined. At Crest Surveyors, we understand that every property is different and unique. Calculating someone’s assets for probate may be confusing and overwhelming, especially if the property they owned is a large estate, a grade listed building, if they owned a business property alongside their commercial property, or more.

To help you during this difficult process, Crest Surveyors are here to provide a thorough ‘Red Book’ valuation. This is a more formal and in-depth valuation that provides photographic evidence, a thorough written report, and a valuation that is as accurate as possible.

Get in touch today for more information or to arrange a valuation.

FAQs

How does probate work?

In relation to properties, a RICS chartered surveyor will calculate the value of the property in question to determine its market value – what it might reasonably sell for on the open market. Other areas of the deceased’s estate may require other specialist valuation methods.

How long does probate take?

A probate valuation will usually take anywhere from 30 minutes to a couple of hours, depending on the size of the property and any particularities associated with the property. Crest Chartered Surveyors aims to deliver all valuation reports within 6 working days of valuation.

Do you need probate if there is a will?

You will need to apply for a Grant of Probate if you are an Executor named in the deceased’s will. This process ensures that Executors are the right people to deal with the deceased’s estate and provides them with the legal right to deal with assets such as property, bank accounts and shares.

What is a stock condition survey?

Posted on March 15, 2023February 6, 2025 by Thomas Awoleye

If you live in a rental or social-housing property, then you may be asked to prepare for a stock condition survey to take place in your home. All social housing properties within the UK are required to fall within the ‘Decent Home Standard’ as part of the law. This includes ensuring that your home is an adequate size, has a kitchen that is 20 years old or less, possess sufficient heating and ventilation, and more. This can often be a routine inspection, so it’s best to be clued up on what to expect, and why they’re required in the first place.

So what exactly is a housing stock condition survey? A stock condition housing survey, otherwise known as a stock condition report (SCR) is a detailed visual inspection of the inside and outside of a property. They are typically used in rental properties to check for damages or any maintenance issues that need attention.

Usually, a SCR does not take longer than 30-minutes to complete, but we understand that they may feel invasive and intrusive. Despite this, they are solely designed to help ensure that your property is of a reasonable standard. To help you learn more about this survey, and why they are used, our expert team at Crest Chartered Surveyors have written this short guide for you to explore. Simply keep reading to learn more about SCR’s.

What is a Stock Condition Housing Survey for?

The standard of social housing in the UK has been in a state of disrepair since the 1980s. In the early 2000s, this issue began to be confronted with the emergence of the Social Housing Green Paper, followed by the approved Social Housing White Paper, which was approved in late 2020. Completed with the Levelling Up White Paper, a new set of reviews and guidelines were issued that required full reviews of social housing, and an urgency to address the improvements to living standards.

The result was the use of a Housing Stock Condition Survey to provide a quick, yet thorough visual inspection of a property by an impartial, RICS-qualified professional. This survey is typically paid for by landlords or housing managers and is a great way to ensure that properties are being maintained and meet the current living standards. After the inspection, your Chartered Surveyor will write a report detailing all findings, a review of the current living condition, and a list of any maintenance issues if any are unveiled.

What is inspected in a Stock Condition Housing Survey?

During a SCR, all the rooms and cupboards inside your property will be visually inspected for defects or maintenance needs. In particular, your RICS-trained surveyor will examine:

Cracks
Damp
Unpleasant smells
Spongy floors
Crooked walls
Appliances
Heating systems
Doors
Windows
Ventilation

The outside of the property will also be examined. This will include:

Windows
Doors
Roof and Guttering
Fences and boundaries
Paths
Access

How long do they usually take?

The duration of your inspection will depend entirely on the size of your property. Usually, they do not last longer than 30 minutes to 1 hour. You don’t need to do anything to prepare for your inspection; they are solely used to check if there are any issues for the landlord or property management company to address, such as if appliances are not working properly, or if any defects need fixing.

What happens if a surveyor finds a problem?

Following your survey, a report will be sent to the landlord or property manager that details all findings, including the current condition of the property, and any defects that require maintenance. Finding minor defects during inspections is normal, and typically nothing to worry about.

Who pays for any issues to be resolved will depend on your situation. If you live in social housing, then it’s usually the responsibility of your landlord or property manager to pay for any repairs. If you rent privately, then who pays depends on who caused the damage. For example, if the damage was caused by the tenant, then it will be their responsibility to pay. On the other hand, if the damage in question falls under property maintenance, then they will be required to fix any issues. If you have any questions, your surveyor will be able to provide you with more information.

Enquire for your Stock Condition Housing Survey with Crest Chartered Surveyors in London

If you’re looking for a RICS-qualified surveyor to carry out a Stock Condition Housing Survey on your property, then get in touch with one of our valued team members today. Our tailored service includes a consultation, a full valuation and a completed report detailing our findings. We provide ourselves with cost-effective, high-quality service that’s accessible for all those available in London and the surrounding counties.

Is it Worth Getting a Homebuyers Survey When Buying a House?

Posted on January 16, 2023February 6, 2025 by Thomas Awoleye

When buying a property, you’re faced with a whole range of fees and a homebuyer’s survey may seem like just another expense. In this article, our RICS chartered surveyor explains why a homebuyer’s survey is worth it when buying a house, and talks you through the different types of house surveys available to ensure you choose the right one for your needs.

So, is it worth getting a homebuyer’s survey? Homebuyers surveys and other types of house surveys are 100% worth it when purchasing a property as they highlight current and potential problems that you may encounter with the property. This can save both time and money further down the road. Alternatively, house surveys can help buyers to prioritise repairs when purchasing a fixer-upper.

Read on to learn more about homebuyer’s surveys, including the different types available and how much they cost.

Are House Surveys Worth it?

House surveys are 100% worth the investment when buying a property, however, to get the most out of a survey, you must select the right one for your needs. The right survey could save you a great deal of time and money down the road; they highlight any current problems and any potential problems that may occur at a later date.

Not all house surveys hold the same level of value for each and every homebuyer. For some, a simple homebuyer survey will suffice, provided that the property is relatively new and free of major damages. For older homes or those that have obvious damage, a building survey or a defect analysis survey may be more useful.

For tenants and landlords, stock condition surveys and schedules of dilapidations may be useful additional surveys once a property has been purchased. These surveys allow tenants and landlords to stay on top of the condition of a property throughout its lifetime, not just at the purchase stage.

Different Types of House Surveys – Which Do You Need?

Below you’ll find more information about each type of house buyers survey, the situations in which they’re commonly used, their benefits and more to help you make an informed decision about which house buyers survey you need and if they are, indeed, worth it for your circumstances.

Homebuyer Survey

Homebuyer surveys are typically used to assess a property, both internally and externally. There is usually a particular focus on the property beyond what can be seen physically, such as hidden defects, decay, and dampness. Further to this, a homebuyer survey will typically look at ceilings, roofs, walls, bathrooms, and kitchens, as well as any permanent outdoor structures and features, such as outbuildings, roofing, pipes and guttering.

Money spent on a homebuyer survey can save you a fortune in the future and help you avoid expensive surprises after you have moved in.

Homebuyer surveys are most useful for properties that have been built of standard construction within the last 50 years that don’t show signs of major faults. Choose between:

RICS Condition Report
RICS Homebuyer Report
New-Build Snagging Survey

Building Survey

Building surveys are similar to homebuyer surveys but are more tailored towards older buildings or those that show obvious signs of defects. This report is more comprehensive than a homebuyer’s survey and provides detailed advice on repairs.

Typically, building surveys cost more than a homebuyer’s survey but they are worth the investment if you’re considering buying an older home, a fixer-upper, or if you noticed signs of defects during a viewing.

Defect Analysis Survey

If you’ve noticed a specific fault or defect in the property you’re buying, a defect analysis survey can help you to determine the extent of the fault, the cause of the fault, whether or not it is likely to get worse over time, and recommendations for repair. Defect analysis surveys can assess:

Dampness
Structural issues
Roof defects
Downpipe and guttering defects
Much more

Typically, defect analysis surveys are much more cost-effective than a full building survey and are worth the investment to ensure that your potential new home is structurally sound.

Stock Condition and Schedule of Dilapidation Surveys

Ideal for landlords and, in some cases, tenants, stock condition and schedule of dilapidation surveys can provide additional value on top of a house survey. These surveys allow you to keep on top of the condition of a property post-purchase and throughout its lifetime.

How Much Do Homebuyer Surveys Cost?

There is no standard cost for homebuyer’s surveys as the cost depends on the type of survey needed, the size of the property and other factors which could impact the cost. At Crest Surveyors, the cost of our homebuyers surveys start from;

£699 for a 2-bed house/bungalow to £849 for a 5-bed flat
£649 for up to a 2-bed flat to £799 for a 5-bed flat
Properties valued at £1 million or higher are charged at a higher fee
Other house surveys are subject to different rates

Homebuyers Surveys at Crest Surveyors

At Crest Surveyors, we provide homebuyer’s surveys and other house surveys across London and Surrey. With years of industry experience and in-depth knowledge of our local area, we work to provide you with the highest quality of service to let you know if there are any issues or defects with your property or potential new purchase.

Whether you’re a first-time buyer or an experienced mover, you’ll need a Homebuyer Survey to provide you with a full understanding of the building’s current condition. Our local and affordable services are here to help you make the process simple and easy. Contact our RICS-qualified specialists today to book your survey.

Is Buying a Shared Ownership Property a Good Idea?

Posted on January 6, 2023February 6, 2025 by Thomas Awoleye

The UK’s shared ownership scheme was introduced in the 1980s, but has become increasingly more popular over the last five years, especially in relation to purchasing a new build property in a Government-backed project. The scheme allows those who may find it difficult to get on the property ladder the opportunity to purchase a home through a part ownership, part rent strategy. In other words, you own a certain percentage of the property, and pay rent on the remaining percentage.

But, is buying a shared ownership property a good idea? If you’re looking for a more affordable means to purchase your own home, then exploring your options with a shared ownership scheme is a good idea. However, before you purchase a new home, you’ll need to ensure that you check for hidden costs such as maintenance fees or service charges, which may increase your monthly outgoings.

A RICS registered surveyor will be able to help and advise you further on the shared ownership scheme, what it could mean for you and investigate any potential issues with your property with a survey. To help you learn more about what shared ownership means for you, we’ve explained all the essential information below. Simply keep reading to learn more.

Is it worth buying a shared ownership property?

If you’re looking for a way to jump onto the property ladder, but can’t borrow enough for a mortgage in the current market, then shared ownership offers you an opportunity to purchase a percentage of a property instead. From here, you pay a mortgage on the percentage that you own, and pay rent on the remaining share. Because of your reduced mortgage, you also pay a reduced deposit, meaning that the costs are lower to purchase a home. This makes this scheme a more affordable option for those looking to buy a home.

With a shared ownership, you also have the potential to buy more shares of your property if you desire. This is a process known as ‘staircasing’, which means that you work your way towards owning the whole property, although this isn’t a requirement. It’s worth noting that the process of purchasing more shares can be costly and complicated; it is likely that you will need the guidance of a RICS Chartered Surveyor to help you.

How does the shared ownership scheme work?

Typically, with the shared ownership scheme, you will be able to purchase a share of the home between 25% and 75%. A bank, housing association or private developer will own the remaining percentage, and you will pay rent to them. The rent you pay will be no higher than 3% of the value of the percentage that the landlord owns. For example, if you own 40% of a home worth £200,000, then each year you will pay £3,300 of rent, equal to £275 a month. Further details on renting costs can be found on the GOV UK website.

Do shared ownership properties increase in value?

As with non-shared ownership properties, the value of your house will increase or decrease in line with the current housing market. If the housing market increases, then so will the overall worth of your percentage share. If you are considering selling your shared ownership property, then the value of which your share is worth will be determined by a RICS Chartered Surveyor.

When does the shared ownership scheme end?

As it stands, the current Government-backed scheme does not have an end date. However, most shared ownership properties are leasehold, meaning that you simply have the right to ‘occupy’ the home, and do not own the land forever. Most leasehold agreements are between 99 years to 125 years, meaning that the end of your lease agreement should not be a factor of concern during your ownership. This is especially the case in relation to new build properties. To learn more about your lease agreement, or to have one of our expert team members calculate your leasehold end date in any London-based property, simply get in touch with one of our trustworthy RICS Chartered Surveyors.

Crest Surveyors are here to help

If you’re in London, and you’re seeking more guidance or information on your shared ownership property, simply reach out to one of our RICS-qualified team members today. We offer affordable and reliable services to ensure that your purchase, remortgage or staircasing opportunities for your shared ownership property goes smoothly. Simply get in touch to learn more about how we can help you.