Should you get a survey on a new build property?
South Bucks new build purchase for circa £2 million pounds shows the merits of having a Building Survey and how ‘new build’ warranties should be treated with extreme caution.
As we all know buying a property is typically the biggest and most expensive commitment any of us will make in our lifetime. It is therefore essential you obtain the correct advice and guidance in the lead up to your purchase. I believe that having a Building Survey is absolutely crucial in this process and can’t be ignored. It is however quite common that I get confronted with a buyer who queries why a survey is required then they are buying a ‘new build’ property. The conversation tends to continue with the buyer stating the house is provided with a 10 year warranty, and that they have ‘nothing to worry about’.
Whilst we are all aware of the many horror stories with the main large scale developers in this country, there are many other smaller builders/developers operating locally. I have recently been involved with a new build property, purchased for circa £2 million pounds, in a highly sought after location in South Bucks. I was engaged by the new owners shortly after their occupation to overview and investigate some concerns they had.
Sadly, in this particular case the buyer did not have a Building Survey, because as they stated ‘due to the comfort of the warranty and the high quality fixtures and fittings’. Unfortunately by failing to commission a Building Survey, the many defects I discovered, were not highlighted or addressed prior to purchase.
These items were not simple ‘snags’, they were major, fundamental parts of the building fabric that were subject to poor design and specification and sub standard workmanship. The list of issues was extensive, but there were major issues with the pitched and flat roof coverings, fire doors, floor structures, drains, acoustics, under floor heating etc.
What was particularly interesting and what we should all take from this, is that once the warranty providers were approached and presented with my report, their responses left me flabbergasted. Whilst they acknowledged our concerns in most cases, some parts of the building fabric were explicitly excluded from the warranty.
Whilst this can be seen in the general terms of the warranty and its exclusions, it is frustrating that in this particular case, the main flat roof crown, was not covered by the warranty. It is also worth noting that each claim will likely be subject to a standard excess, which will often be circa £1,000.
More concerning was their approach to the other areas. Whilst there was general acknowledgement of the issues, until there was actual physical failure or disrepair caused by the defect then little action would be taken by the insurers. This left the owner with concerns as to the safety and function of the property and in my view the property offered a much lower design life in comparison to similar properties. It was also likely that the property would require more regular and significant maintenance expenditure than similar properties.
Therefore, this particular case clearly shows the merits of having a Building Survey and how ‘new build’ warranties should be treated with caution. If you are buying a new build property it remains essential to commission a Building Survey whilst also researching the clauses, terms and potential exclusions of the warranty. The Surveyor and your legal advisors can assist in this regard. The warranty should not be treated as the single most important part of buying the property, but a ‘fallback’ for rectifying a major defect, should it occur.
If you are in the process of buying a new build or other type of property, please feel free to get in touch to discuss all options and Jaggard Macland's range of services.
Philip Pearcey, MRICS.
Senior Surveyor
Jaggard Macland LLP