Property Searches - Leasehold / Cash buyer

Discussion in 'General Property Investment Discussion' started by Akosiminghua, Apr 30, 2018.

  1. Akosiminghua

    Akosiminghua New Member

    Hi,

    I am looking for some great advice here - Newbie Property Developer (Buy a house - refurbish the house - sell it on with profit)

    I am a cash buyer, buying a leasehold property and is wondering if its worth it to conduct searches to the property.

    Many thanks.

    Emma
     
  2. Longterminvestor

    Longterminvestor Administrator

    Hi Emma,

    Welcome to the forum!

    It would be useful to know which country and what type of property you are looking to acquire together with your budget.
     
  3. lookinginvest

    lookinginvest Member

    Can you give us a bit more detail please as I am not sure what you are asking?
     
  4. Akosiminghua

    Akosiminghua New Member


    Hi,

    The property is in the UK, I am buying a flat with a new 125 years lease.
    Some people say that since I am a cash buyer and the flat is a leasehold, it is not mandatory to conduct a search. Just want to hear some peoples advise regarding property searches.

    Thanks,
    Emma
     
  5. FWL

    FWL Member

    Surely it would be sensible to conduct a search just for peace of mind as I would assume you are investing a significant amount of money? Not sure of any reasons which you would not undertake a search?
     
  6. diyhelp

    diyhelp Active Member

    In which country is the property located? That would have an impact on pre-purchase checks.
     
  7. sonamwsingh

    sonamwsingh New Member

    To get legal property through real agents and brokers is a very important at present days. The top real estate developers offering all the facilities and completion of legal process on time.(moderated.)
     
    Last edited by a moderator: Jun 6, 2018
  8. MarkOBC

    MarkOBC New Member

    I agree with @FWL - the searches are a trivial amount of additional money to spend for reassurance that you're not getting yourself into something that could be problematic. Perhaps more importantly - you're planning to sell the property, and the likelihood is that the buyer will be borrowing and therefore will conduct searches. Therefore you want to know in advance that there's nothing in there that will prevent them from purchasing (either lender or solicitor advice).

    I just converted a small office into 5 flats. We had search info at the time of purchase (all clear). We sold 2 units, and those buyers conducted searches - again all clear. Then the environmental search company for the buyers of unit 3 had something come up that prevented them from moving forward. It was trivial, but the solicitor wasn't letting it go. However, because we had the 3 other clear searches to send them (and also the CML handbook was happy if the local search came up clear), we had enough evidence to convince the solicitor that they were being overly pedantic and got them to agree to proceed.

    Bottom line, the searches turned out to be important for us from both the buyer and the seller perspective.
     
  9. diyhelp

    diyhelp Active Member

    I support the comments above - for the relatively small amount of money involved (in the whole scheme of things) it does not make sense to cut corners now and maybe pay the price further down the line.
     
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