Why Conveyancing Searches Could Save You Thousands
Purchasing a property is one of the biggest financial commitments that you will make during your lifetime. Whilst it can be tempting to cut costs, particularly as a cash buyer, skipping Conveyancing searches could result in significant unexpected costs in the future.
Conveyancing searches are designed to uncover any issues with the property that may not be visible to the human eye, or during the property survey. Searches provide essential information about the property, the surrounding areas, and any legal or environmental matters that could affect your ownership.
Are Conveyancing Searches Mandatory?
Yes, if you are purchasing a property with a Mortgage, the lender will almost always require a specific set of searches to be carried out before releasing the funds. This is because the lender wants to ensure that the property provides suitable security for the funds.
However, if you are a cash buyer, the decision is ultimately yours. There is no legal requirement to carry out searches, and some buyers consider skipping them to save time and money.
While you may save money upfront, you may inherit costs that are only discovered once the property transaction is completed.
What Are the Risks of Skipping Conveyancing Searches?
A property may appear perfect on the surface, but searches can reveal hidden issues that could significantly impact its value, your finances and your ability to enjoy your new home.
- Structural issues: Certain areas are affected by historical mining activity, or ground instability. Environmental and mining searches can identify risks that may require further investigation before you commit to the purchase.
- Hidden Flood and Water Risks: A property does not of had to have flooded previously to be deemed a flood risk. Environmental searches can identify flood risk from rivers, surface water or ground water.
- Outdated Utilities and Infrastructure: Searches can reveal whether the property is connected to mains water and drainage, whether public sewers run beneath the land, or whether future utility works could affect the property. These issues may impact future extensions, renovations or even maintenance costs.
- Planning Restrictions and Future Development: Local Authority searches reveal planning permissions, building regulations, conservation areas, Tree Preservation Orders and proposed developments nearby. Without these checks, you may unknowingly purchase a property next to land earmarked for major future development.
- Legal Discrepancies: Searches may also identify unadopted roads, public rights of way, financial charges against the property, planning enforcement notices, and restrictions affecting future alterations. Identifying these issues before exchange allows you to make an informed decision or negotiate with the seller ahead of exchange of contracts.
What Are the Typical Conveyancing Searches Ordered?
The searches required will depend on the property’s location, but your Conveyancing Solicitor will usually recommend a combination of the following:
- Local Authority Search: Reveals important information held by the local council, including planning permissions, building regulations, conservation areas, tree preservation orders, and any proposed road schemes or developments that could impact the property.
- Environment Search: Identified environmental risks such as flood risks, contaminated land, landfill sites, ground stability, radon gas and any other environmental factors that could impact the property’s value or future use.
- Water & Drainage Search: Confirms whether the property is connected to mains water and public drainage, whether public sewers run within the property’s boundaries, and who is responsible for maintaining the water and sewerage services.
- Coal Mining Search: In areas with a history of mining, this search highlights whether the property could be affected by past, present or future mining activity, including the risk of ground movement or subsidence.
Are Searches Worth the Cost?
Conveyancing searches usually represent a very small proportion of the overall cost of buying a property. For a relatively modest price they provide information that can prevent unexpected repair costs, highlight legal issues before exchange, help you to negotiate the purchase price, protect your investment and give you confidence that you are making an informed decision.
Skipping searches might save a few hundred pounds earlier on in the transaction, but discovering a major issue after completion could cost thousands to resolve.
By Your Side
Our experienced Lawyers carefully review every search result, will explain what they mean in plain English, and advises you on any issues that could affect your purchase. If any concerns are raised, we will help you to understand your options before you are legally committed to the purchase.
If you are thinking of purchasing a property, get in touch with our Conveyancing New Business Team today on 03444 124348.