Receiving a 50 page RICS report can be overwhelming. However, this document is your most powerful asset in a property transaction. If used correctly, it can save you thousands of pounds or, more importantly, save you from a catastrophic investment.
The Leasehold Complexity: Looking Beyond the Front Door.
When you buy a leasehold flat in London or the surrounding counties, you aren’t just buying a home; you are entering a shared financial relationship.
At Stokemont, our surveys for leasehold properties focus on:
- The Common Parts: We don’t just check your bedroom; we look at the roof, the hallways, and the external elevations.
- The Section 20 Risk: If we spot a failing roof on a block of ten flats and there is no sinking fund in the accounts, you could be liable for a significant share of a £100,000 repair. We flag these hidden liabilities so your solicitor can investigate the service charge history.
- Licence for Alterations: If the previous owner made structural changes, we check if a Licence for Alterations was granted. Without this, you could be forced to undo the work at your own expense.
How to Use the Traffic Light System to Your Advantage
RICS reports use a Condition Rating system. Here is how to handle each:
- Condition Rating 1 (Green): No repair currently needed. Note these for future maintenance.
- Condition Rating 2 (Amber): Defects that need repairing but are not considered serious or urgent. Use these to create a five year plan for the property.
- Condition Rating 3 (Red): These are Urgent or Serious. They require immediate action before you exchange contracts.
The Expert Negotiation Playbook
If your survey comes back with Red flags, do not panic. Follow this professional protocol:
- Step 1: The Evidence Phase. Do not just tell the agent there is damp. Send them the specific page of the Stokemont report. Our independent, RICS accredited status makes the finding fact, not opinion.
- Step 2: The Contractor Phase. We provide repair advice, but you should get formal quotes from contractors based on our findings.
- Step 3: The Price Adjustment. Ask for a reduction in the sale price or ask the vendor to carry out the works. We usually recommend a price reduction so you can oversee the quality of the repair yourself.
The Seasoned Expert’s Rule: When to Walk Away.
We are here to protect you. There are three scenarios where we will tell you to walk away:
- Undisclosed Structural Subsidence: If the building is actively moving and the insurance premium will be astronomical.
- Non Remediable Legal Risks: If the property has been altered structurally without Building Regulations approval and cannot be regularized.
- The Money Pit Ratio: If the cost of essential repairs plus your mortgage exceeds the future projected value of the home, you are starting your homeownership journey in debt.
Stokemont provides more than just a report; we provide a clear, actionable path forward. Our team has over 30 years of property knowledge and is ready to assist you. Request a Survey Quote from Stokemont!
