What Building Checks You Need To Do Before Purchasing A Residential Block?

Below are all the building considerations you need to check as a property investor when purchasing an apartment building/block of flats. As you may already know we help people that find themselves thinking “I need to sell my apartment building fast in the UK”. The way in which we’re able to purchase these buildings so quickly is because of our industry knowledge and experience. Otherwise, you could make a number of mistakes. We’ve made a list of all of the considerations we have when we look to purchase a residential block. 

What is the condition of the building? 

You don’t want to buy a building that has many fixed costs as soon as you purchase it. You would obviously have a survey completed on the building before purchase. However you don’t want to progress with a survey if there are clear issues with the building to begin with. It’s not to say that a building isn’t a good investment if it’s in bad condition, but it must be reflected in the asking price. Some main areas you want to look at when assessing a block is the roof and structural issues (subsidence, brickwork cracks, heaves). 

These areas are typically the highest singular costs you would incur when buying a property in bad condition. You need to find out when the roof was last installed. They generally say that a roof will last 30 years, Building Research Establishment (BRE) says clay tiles can last up to 60 years. However, all of this should be considered and you should have an idea of how much it should cost you to replace the roof. You should also just inspect its physical appearance, is the roof bowing (meaning its curved), is there tiles missing etc. 

The cost to replace the roof can vary depending on the contractor but you could see a price per square metre of £300 – £400 for a new roof installation. A roof is something you can easily spot, but sometimes the hidden danger could be hidden underground and can cause significant problems with the structure of the building. This could be subsidence when the ground the building is on collapses or subsides causing the building to have structural problems. This can cause major cracks and can potentially mean an immediate collapse. 

It’s down to the soil and ground rather than any structural fault. This can be caused by extreme hot and dry spells but also by nearby trees and plants. The roots can interfere with the ground below the building therefore making it unstable and you could spot a heave. Another structural problem could be a landslip, which refers to the ground gradually or sudden movement on a slope. 

This could be caused by having works completed nearby that undercut the slope (in which the building sits on) or overloading debris at a higher point. With all of these building structural issues, the earlier you spot them the better.  Signs that you crack are structural issues, if they are larger than a 10 pence piece, identifiable on both sides of the wall, close to doors and windows, a diagonal direction and wider at the top rather than the bottom. Also you should look at the walls (not just the plaster), look for bowing walls as this is another sign of a structural issue.

Japanese knotweed is a famous property problem that is well publicised. It’s a definite problem as in some cases it cannot be treated and can massively affect whether lenders will finance any part of the building. But also you should check the buildings next to you, because this can still affect you as japanese knotweed can go down 3m deep and up to 7m wide.

Is the property located in a flood zone? If it is this can influence your insurance premiums on the building. If you do indeed get flooding in the area it can obviously void rents and give you a period without income on the property. 

If the building has had any extensions or had works completed in order to convert them, has this all been signed off with building control and had the correct planning permission. Are there any restrictive covenants on the block? This would typically be written into the deeds on a property and you would need your conveyancing solicitor to overlook it. 

Also if your building is ex council or even in an area with plenty of other council housing. This can affect mortgage lenders wanting to finance you as they are wary about future prices and whether the mortgage can be paid back. Lastly you want to look whether you have standard construction or non standard construction. Standard constructions refers to bricks and mortar, these are considered reliable and sustainable building materials. Meanwhile non standard construction is timber framed buildings and compressed concrete, which aren’t as sustainable as previously mentioned building materials (don’t last as long).  

What is the condition of the individual units/flats?

This can obviously be another big expense if the building you’re taking over is severely outdated or not in a position to be rented out. The big costs involved with each unit will typically be their individual or communal heating systems. You can either have a communal boiler that serves multiple units or just one boiler per unit. This is a hard cost you could incur on taking on a new building and you should check out when they bought their current boiler. 

Boilers can typically last 15 years, so you should calculate the costs involved if you are to replace x amount of boilers when you purchase. Does it have a floor mounted boiler or a wall mounted boiler? Does the boiler have a flue pipe coming out the top? likely to be an and non-energy efficient boiler. An individual boiler can cost anything from £3000 up to £5000. The heating system is also another important area that shouldn’t be overlooked. Is it currently a gas or electric heating system? Is there even a central heating system throughout the building or will you have to go back to brick and install it. 

Checking the fuse board is another essential area to look into. Older fuse boxes can be slightly more dangerous and hazardous to potential rents. There are some regulations that suggest we need metal fuse boxes as opposed to plastic due to fire hazard after electrical faults. This regulation came into fruition in January 2016 in the 17th edition Wiring Regulations amendment 3. Also older buildings which have been built pre 1965 might need to be rewired as they might not be earthed. Completing rewiring the building would be an extreme cost to take on and must be reflected in the purchase price. All of these elements will influence the score the building achieves in the energy performance certificate. Energy performance certificate (EPC) must be completed before a property is sold or rented.