This article is sponsored by Cosey Homes, a distinguished team of RICS-accredited Chartered Surveyors, with extensive expertise in both residential and commercial property. Here, they share invaluable insights into how a comprehensive RICS Building Survey is crucial for mitigating acquisition risks, and guiding informed investment decisions.
For any property investor, the journey to investing in a new property is inherently risky. While the prospect of adding another asset to your portfolio can be exciting, the potential for unforeseen complications and costly surprises looms large over every decision. Undertaking a comprehensive RICS Building Survey can serve as an indispensable tool for both seasoned investors and first-time buyers alike, empowering them to make confident and well-informed property choices.
What is a RICS Building Survey?
A RICS Building Survey is the gold standard in property assessments. It provides a detailed, comprehensive inspection of the current state of the property, and unlike basic valuations or cursory inspections, this examination is designed to uncover both present and potential issues that could impact the property’s value, safety, or future performance. A building survey serves as a critical diagnostic tool for investors because it offers a complete picture of what they are acquiring and what challenges might arise down the road.
The scope of an RICS Building Survey is remarkably comprehensive, covering every aspect of the property that could influence its condition or suitability for its intended use. Surveyors meticulously examine structural elements, such as the roof and covering, external and internal walls, foundations, and load-bearing components, checking their current condition and identifying any signs of deterioration, damage, or structural movement that could pose an issue.
The building fabric receives equally thorough attention, with detailed examination of windows, doors, internal finishes, flooring, and decorative elements to identify wear and areas that require immediate maintenance or replacement. The survey will also include an evaluation of electrical systems, plumbing, heating and ventilation, and drainage, checking for the safety and functionality of these elements and whether they comply with current standards.
It’s important to distinguish a Building Survey from other survey types to understand its unique value proposition. A HomeBuyer Report provides a limited assessment, making it more suitable for conventional properties that are in reasonable condition, while a basic valuation focuses primarily on market value rather than condition.
Building surveys offer the most detailed analysis available, and it is this comprehensive approach that makes them particularly valuable for older properties, unusual construction types, properties in poor condition, or situations where the investor needs complete confidence in the asset’s condition and future requirements.
Ways a RICS Survey mitigates acquisition risks
Financial risk mitigation
No investor wants to dive into an acquisition without knowing the full extent of repair and maintenance costs. Hidden defects and the associated repairs can result in tens of thousands of pounds to resolve. This is where a survey mitigates the risk—you’ll have a clear report outlining the most serious issues, such as rising damp, subsidence, or roof defects, so you can decide whether you want to still go ahead, have the seller resolve these issues before completion, or to walk away from the purchase.
Quantifying the scope and cost of potential and necessary repairs enables investors to factor these expenses into their acquisition calculations, preventing the shock of unexpected major expenses that could derail the investment’s financial viability.
Legal and compliance risk mitigation
Legal or compliance risks are some of the most serious threats to any commercial property investment. Violations of building regulations, planning permissions, or safety standards can trigger costly enforcement action and requests for remediation. They could even force the cessation of your property’s intended uses.
A building survey systematically identifies these risks by examining the property against current regulatory requirements, highlighting any compliance issues that could result in legal liabilities for you as the new owner. Likewise, their expertise in recognising risks like contaminated land, flood risks, or asbestos-containing materials, enables the appropriate investigations where necessary, ensuring that environmental liabilities are managed from the outset.
Future planning risk mitigation
Surveys give you crucial insights into the property’s suitability for its intended use and any long-term operational requirements it might have. It’s a forward-thinking analysis that can be incredibly useful for investors who are planning specific use cases such as residential rentals or mixed-use developments.
Rather than reacting to problems as they arise, investors can also proactively plan for the likes of roof renewals, heating system replacements, exterior maintenance cycles, and other predictable capital expenditures based on a professional assessment of component lifecycles and current conditions. The report provides essential baseline information about the property’s structural capacity, services infrastructure, and regulatory compliance status which can be used to inform renovations and scheduling of upgrades.
Informed decision-making
Perhaps the most valuable benefit of a building survey is the peace of mind it provides. Property investments involve substantial financial commitments and long-term responsibilities, so having complete information about the building in question helps ensure confident decision-making. A survey transforms what might otherwise be an uncertain gamble into an informed business decision based on professional assessment and factual analysis.
Ultimately, a building survey is an essential investment in due diligence that will transform your property acquisition from a leap of faith into a calculated business decision. With a wealth of experience in residential and commercial property surveys, together with structural inspections, Cosey Homes can help you ensure that your property investments are well protected. https://www.coseyhomes.co.uk/contact/
