Investment Property Local Searches
Investment property local searches; is an essential step in the conveyancing process . These searches provide crucial information about the property and its surrounding area, helping you avoid unexpected issues after the purchase.
This guide outlines the key local searches you may need, their purpose, and the potential risks they help mitigate.
What are Local Searches
Local searches provide background information on a property, including past planning applications, environmental risks, and potential future developments. Most investment property purchases require these searches to ensure there are no hidden costs, legal complications, or planning restrictions that could affect the property’s value.
These searches are typically conducted by your solicitor, who will apply to the local authority for the necessary reports. The process usually takes two to three weeks, though some councils may take longer. If speed is a concern, you can opt for a personal search, which is faster but incurs an additional cost.
Key Local Searches to Consider
1. Planning and Development Searches
Planning searches identify any current or historical planning applications that could impact the property. This includes:
- Nearby road schemes or motorways
- Large-scale housing or commercial developments
- Building control history (e.g., past renovations or structural work)
- Potential compulsory purchase orders by the local authority
A thorough search ensures that you are aware of any major infrastructure projects that could affect property value or rental demand.
2. Environmental and Flood Risk Searches
Environmental factors can have a significant impact on an investment property. Key searches include:
Radon Gas Search
Radon is a naturally occurring radioactive gas that can seep from underground rocks into buildings. High exposure levels have been linked to health risks, including cancer.
📌 Tip: Check the UK Health Security Agency (UKHSA) Radon Map to see if the property is in an affected area. If so, professional radon testing is advisable.
Flood Risk Search
Flooding can lead to high insurance premiums or even make a property uninsurable. A flood risk assessment will determine whether the property:
- Lies within a flood zone
- Has a history of flooding
- Faces potential future risks due to climate change
The Environment Agency regularly updates flood maps, and it’s strongly recommended to check these before purchasing.
3. Chancel Repair Liability Search
Chancel Repair Liability is a historic law that may require property owners to contribute to the maintenance of a local parish church. This obligation dates back to medieval times when land was taxed to support the church.
Why is this important?
Although rare, some property owners have faced substantial costs due to this liability.
📌 Case Study:
Andrew and Gail Wallbank were ordered to pay over £400,000 towards repairs for St John the Baptist Church in Aston Cantlow, Warwickshire. This sum included legal fees after a 20-year legal battle, proving that these ancient obligations can still be enforced.
A Chancel Search determines whether a property is at risk. If there is any liability, you may need insurance to protect against future claims.
💷 Cost: A Chancel Search is not included in standard local searches and costs around £100 – £150.
How Much Do Local Searches Cost?
The cost of local searches varies depending on the local authority and the complexity of the property’s location. Approximate costs are:
- Standard Local Authority Searches: £200 – £400
- Chancel Repair Search: £100 – £150
- Flood & Environmental Searches: £50 – £200 (depending on risk levels)
These fees are paid to the local council or search providers and are typically arranged by your solicitor
Final Thoughts
Undertaking local searches is a crucial step in protecting your investment. These searches help uncover potential risks, ensuring you don’t face unexpected costs or legal complications after purchase.
Next Steps:
- Ask your solicitor to conduct the relevant searches before proceeding.
- Consider additional checks such as environmental and flood risk reports for added security.
- If buying a rural or historic property, ensure a Chancel Repair Search is completed.
A little due diligence now can save you time, money, and stress in the long run.
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Disclaimer
The Content above is for guidance purpose only. While we make every effort to keep the information current and correct, we do not make representations of any kind. Professional advice should be sought, before entering into any legal contract and purchasing a property.