Posts Tagged ‘Institution Of Chartered Surveyors’

No, not a legal run-down on what to do or not to do. Instead, a few words of wisdom to help you ensure “your X, or other-half” does pull a fast-one on you as far your joint Home is concerned.

I often get calls along the lines “Mr Parrett? I saw your web-site and need some advice. Can you help me?” The following comments distill these calls for help into a few Rules to protect yourself :-

1. Never agree to anything you do not fully understand.
2. Always take legal opinion, if at all possible.
3. When the time comes to VALUE THE HOUSE the following may help you —
   • Do not panic when your “other half” starts quoting strange fictional things about the house eg: “you do know it has got subsidence and isn’t worth much?”. Rise above such tactics and do not respond.
   • If the Valuation is organised through Solicitors you may be asked to provide two names of valuers you would be happy to use. Find two local Chartered Surveyors who specialise in Valuations (call the Royal Institution of Chartered Surveyors in London if you are stuck). I prefer smaller firms to the larger ones. The more local the better. Your legal team will negotiate with your partners legal guys until a mutually acceptable Valer is agreed.
   • If I was one of these Valuers I would pre-quote 150% of my normal Valuation fee rates and charge each party 75% of that rate (you each save 25% of a normal Valuation fee).
   • Payment would be expected “up front” as in any dispute situation.
   • If you can be on-site when the Valuer inspects this is to be preferred – in case questions arise.
   • If Solicitors are not involved then attempt to get written agreement from your partner that a particular Valuer can be instructed jointly. You would need to get fee quotes and do not forget to tell each Valuer the purpose of the Valuation (“Matrimonial Proceedings” is the terminology used and include in your instructions that it is a joint instruction and ask if two Invoices can be generated – one for each party).
   • Be friendly to the Valuer and have copies of any guarantees, plans, warranties, boiler service plan papers etc…. ready when he or she arrives.

Often when I am on-site, and usually when only one party is present (not both husband and wife), comments are made that could be construed as “attempting to get at me”. I am immune to such attempts and would say that at the human level they can easily go against the person making them. This shows that whoever you instruct must be of strong character and of robust constitution. This is yet another reason why it is vital for you to actually speak to the Valuer who is to inspect your home (and not a secretary or other such Agent or middleman).

The “good Valuer” will only include Report comment if he or she is convinced it is factual and important. However, where some doubt exists, and if the information is vital or may affect the tone of the Valuation, the information may be included but with a reference as to where it came from and why anybody reading the Report must strictly verify the information before any agreement is reached.

Valuations for Divorce or Matrimonial Proceedings are not for wimps: make sure you don’t use one.

Worried about how flooding may affect your home?

FOR THE LATEST ADVICE BROCHURE FROM THE ROYAL INSTITUTION OF CHARTERED SURVEYORS READ THIS FILE – “FLOOD ADVICE“

Flooding is not a new concept but is something that is increasing for three main reasons – (1) we are building more and more estates on flood plains (2) climate change, (3) the ignorance of home owners and occupiers.

In the good old days when it rained the surface water was carried away. When it rained the ground could cope with saturation. Home occupiers knew of the risks of flooding and had local solutions designed to cope with the extremes of the weather.

Nowadays we are not in control of these same factors to anything like the same degree. This means that we experience far higher risks of flooding.

Before I go on let’s bury one myth. If you check out the web for Environmental Risks it will grade your Post Code / Area according to historic data of actual flooding. But, flooding from what? The answer is flooding by waterways and the sea. These website databases do not analysis surface water risks other than from waterways and the sea.

If you live near the sea or a waterway this makes sense: occasionally banks burst and the resultant overflow floods the district as we see frequently on the media News to dramatic effect.

What is more difficult to understand is non-sea and non-waterways reasons for flooding.

THE BEGINNING – ASSESS THE MAIN RISKS – See the Environmental Agency Flood Maps and Advice data at
http://www.environment-agency.gov.uk/homeandleisure/floods

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Football in the sun: but the clouds are gathering.

AN EXAMPLE:-

Picture the scene: one house in a very large field. The house is high up away from the sea or any waterways and lakes etc…… No flooding has been known to have occurred but the land was very wet at times.

Over the years one house became two became a thousand, became a city. The flood plain area used to soak up severe storm water and just about cope with the extremes. All the land soaked up a small amount of water.

Over the years the proportion of non-developed land got smaller and smaller until today hardly any land is free of development in some shape or form.

The result? In heavy rainfall conditions the storm sewers cannot cope and those small areas of free land cannot soak-up the excesses. The consequence is surge flows over previously “dry land” and “severe ponding” behind obstructions to those flows.

If your home is located within those areas “behind obstructions” then you will experience flooding. This can happen nearly anywhere.

In the south of Hampshire (my own County) we were (pre-Credit-Crunch) scheduled to build 80,000 homes before 2026. As much of the land earmarked for these homes is of clay form or within flood-plain district it is highly predictable that seasonal flooding will increase.

How should you react to these observations? This is difficult to outline unless I personalise my responses to specific homes. However, the answer is to either (1) ensure you have cast-iron Buildings Insurance that includes such risks and that an excessive “policy excess” sums for such damage do not exist OR (2) to not buy homes built in flood-plains, OR (3) make sure you invest in a range of anti-flood devices such as flood gates, one-way-drainage-valves, etc…

Insurance companies can be very mercenary nowadays and if they suddenly revoke your insurance cover you will have great difficultly in finding any company to accept your risks. On the other hand you may not have the choice to buy a home outside of the flood-plain districts.

Many people will not be able to exercise a choice and will have to live with the risks. Therefore the question becomes one of “what can I do to reduce flood risk?”.

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The following is taken from an article I put together a couple of years ago (2008) and is helpful here:-

Did you know (data taken from various internet sources)-

• 11% of English homes are at risk of some form of flooding (and with climate change this number is increasing daily).
• We are still building homes in natural flood plain districts.
• Insurance statistics show us that half a metre of flood-water causes £15,000 of damage in the average semi-detached home and £9,000 of that sum is uninsurable!
• The current normal range of Insurance payout cost for flood remediation works is £15 – £30,000 per home.
• Government policy is to build 3m new homes by 2020 and 1/3 of these will be within floodplains.

The new buzz words are “resistance” and “resilience” – in other words, reducing the amount of water that gets into your home and also reducing the damage that water causes.

What can you do to protect yourself? This depends on many factors, typically…….

1. Where are you buying?
2. What is the precise construction of that home?
3. How old is that home and when was it extended?
4. Proximity to sea, lakes and rivers plus altitude and topography?
5. What protects that home – how exposed is it?
6. Was it designed with flooding in mind?
7. Have multiple soft/permeable ground surfaces been hard landscaped?
8. Does it have a flooding history – have you asked?

When you are thinking of buying a home make enquiries, ask questions, drive around the district to pick up clues about water levels. Visit the Local Authority Planning and Building Control Departments and ask about your dream home.

When you have purchased “have a plan of self protection measures”! Sandbags, water diversion means/materials, how/who/went to transport of possessions/valuables to other out of town and higher altitude secure buildings, etc…..  However, initially we need to start designing with flooding in mind: so why aren’t we?

The slightly better news is that Government and the Insurance industry have at last signed up to a new protocol that ensures that flood damage insurance cover will not be withdrawn or otherwise not offered, BUT, only for homes built BEFORE 2009. If you are buying after this date then you need to clearly verify exactly how your Developer/Seller have minimised the potential of flood risk and how they have designed out much of the traditional potential damage that could be caused by water – this is up to you to activate and achieve and is not the duty of your solicitors, the seller or mortgage Valuer.

Longer term typical self-protection measures in existing housing could include:-

• Raising the height of power sockets
• Exterior Flood doors and lightweight, easily removable interior doors
• Stone or Ceramic tile ground floor form within a professional “tanking” system
• Waterproof cement plaster to lower areas
• Flood locking wall-base airbricks
• Marine varnish (multiple coats) skirtingboards on all faces and edges before fixing in place.
• Install screw-down (and well greased) drain inspection chamber covers.

On a more practical note – when you buy a home ask your Private Surveyor to comment on flood, ponding and surface water flow risks in relation to the land and building local characteristics.

Don’t forget that water damage can come in many differing forms: here is a selection of real problems diagnosed during real surveys completed by PROinspect:-

• Poor run-off design down a minor slope can cause havoc if the flood is directed into your garage!
• The lack of driveway edge kerbstones caused rainwater to enter wall-base airbricks and flood the underfloor void and eventually cause widespread floor decay!
• Conservatory added? About 30% of Builders forget to install rainwater outfall drains therefore massively increasing the risk of subsidence to both conservatory and main building.
• The removal of a front gate step (to insert a disabled person ramp access) caused road rainwater run-off to enter the house basement and flood two complete rooms!
• Over-extension of home: original rear rainwater downpipe redirected over an extensions flat roof from which a downpipe was redirected over a single storey extension flat roof that discharged over a conservatory roof – all into one normal capacity single downpipe!. Result, overfilling gutters ever time it rains, all made worse by the fact that the new conservatory downpipe was simply “stuck into the ground” without any drain outfall system attached.

One client said to us that his solicitor had commissioned an Environmental Risk Impact Report and that no flood risk had been identified. When we reported that his intended purchase was a poor flood risk he was confused and very angry! Why? Because he had not thought that flood damage can occur anywhere and is not restricted to floodplains in close proximity to the coast and rivers.

Have you noted the common strand running through these examples? Lack of knowledge; incompetent Contractors; ill-considered seller/occupier/landlord DIY.

Think about water flows, design for them, clearly monitor and then well maintain all aspects of drainage systems. Never underplay the power of water and running water.

Short term protection on your next purchase is to make sure you are not buying something that is in poor repair or has been improperly considered. Consider the impact of matters such as soft and damaged wall pointing, poor joinery paintwork, window and door frame edge gaps that are left open, the lack of water resistant wall paint systems applied up to 500mm over the potential flood water line, fixings used that are not of corrosion resistant materials (not mild steel) especially in relation to seawater flood risk areas, plasterboard wall linings and chipboard lower floorings not replaced with timber panels using WBP-bonded plywood and perhaps existing softwood floors that have not been preservative treated.

For services consider being proactive and …. raise the lower electrical ring main cabling to the upper floor level, use plaster conduits rather that burying cables within the wall plaster, use pipe insulation materials of the “closed cell” type that are not liable to water absorption, for drainage systems install non-return-valves and raise the height of all communication cables and equipment, etc…..

STOP – THINK – COMMISSION A PRIVATE SURVEY, or

at the very least, if you are involved in housing within the area covered by PROinspect, use the CONTACT FORM and ask my opinion now. I know the “bad” areas from experience and that knowledge might just prevent you form making a costly mistake.

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And finally …….

As each new district is afflicted with climate-flooding (a new term for non-sea and non-waterways flooding?) house values will be adversely affected as Insurers revoke cover and Mortgage Loan Companies restrict loan ratios: values will fall as demand falls and even if your home has not flooded.

Today I am involved with a home close to my home Town. This house is a detached Period structure that has never suffered from flooding in any capacity, shape or form. Suddenly the water table has risen significantly and since a £20,000 flood insurance claim last year their land has flooded several times but they have managed to keep water out of their home. At times the only method they could adopt was to illegally pump surface water into a roadside public gully.

My commission is to get the Insurers to cooperate and to pay for defence works before the house subsides: as it will do very soon as the high water table leaches fine material from under the house. In some respects my clients home is a crisis in the making.

Questions they will have to consider are:-

If they sold the home – what must they declare and what effect on value will those statements have on potential buyers.

If Insurers withdraw cover could they get any new cover? If not then what happens?: is the home un-buyable as Loan Companies will demand insurance!

“Between a rock and hard place” springs to mind!

Effect of Flooding on your home Value? – Read this research document from the RICS Foundation.

When is a “new” home not worth what you paid for it?

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Buy today at, say, £250,000; sell tomorrow for less (regardless of market conditions).

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According to “new thinking” (post-Credit-Crunch) the answer is NOW – an immediate fall in reported value can be expected.

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Developers and Lenders have noted valuation inconsistencies over many years now despite their attempts to QA out certain historic bugs-in-the-system. EG: once upon a time all parties came together and established the concept of “New-Build-Premium” on brand new homes; this has since been rescinded and no longer exists.

Valuation uncertainty can be traced to many factors, such as – market volatility, poor professional direction (to Valuers), differing policies adopted by the many lenders/valuer-chains, lack of transparency on Builders’ buyer-incentives, etc…..

Indeed, Valuation nowadays seems to have drifted from a professional opinion of what the local market will bear to simply what can be inferred by comparison with historic transactions. The result? Over-cautious Valuations by “directed” Valuers (as opposed to the Valuer exercising free-will and giving a true professional opinion).

Nationwide has been operating a New Homes Valuation guidance scheme that includes an opinion of “resale value*” as well as “current value” (*market value but upon the special assumption that the property has already been occupied – for six months, at least: making the home “second hand”).

This resale value means that any element of premium being paid because the home is “new” is to be discounted from the figurework.

This is a real grey area and official guidance by Royal Institution of Chartered Surveyors, and others, is not entirely clear and not nearly comprehensive enough to currently protect its members from claims of negligence.

The problem for Valuers is that the second-hand market that produces comparables may not have the same design features, low-maintenance materials, low-energy-consumption figures (etc…) as the new home.

This now causes the Valuer to have to identify exactly (1) what creates the value of the new home, (2) of those factors, which are unique to the particular new home and (3) which of those factors should be excluded, (4) how is each excluded factor to be assigned an element of value, plus (5) which new home features disappear after six months (when the condition of the home is not perfect any more).

A new science is in the making – how much additional value does a door-bell create? What deduction should be included for having a non-porous driveway in a floodplain area? You could easily disappear in dispair at the complexity of these matters.

The answer is always simple – look at Valuation holistically and ensure any significant new features are then identified and considered: make notes to explain your logic, any evidence you have to support that logic and then value accordingly.

One feature that has seemingly had its own solution is the 2008 introduction of the Council of Mortgage Lenders INCENTIVES DISCLOSURE FORM. The Valuer must ask to see this document on all New Home valuations. The Form lists the sale incentives used – discounted mortgages, cash-back schemes, no-fees mortgages, free gifts, nothing to pay for a period, carpets and curtains included, etc…. However, for clients who have revealed their financial affairs to us PROinspect has seen many of these Forms and it is our opinion that the actual sale price remains less than transparent.

Another, and topical, factor to mention is that in poor market conditions Auction Sale results can be viewed as distressed-sales and not wholly indicative of the overall local marketplace (and repossessed homes can often be in poor condition).

Another problem is that the world is imperfect and knowledge is not freely shared. Each Valuer will have comparables, but not all comparables. FACT – imperfect knowledge creates valuation variations.

The latter feature is the basis of why most Loan Companies have in-house or controlled PANELS of Valuers. Each valuation instruction to a Panel Member goes with a list of known comparables.

This practice creates a closed cartel of Valuation instructions. This is not necessarily a bad thing: any system is as good as its weakness link – if the instruction data is good then the valuation opinion output is capable of being accurate.

In an ideal world all Valuations would be placed on a national database and be freely available within days of completion. Each Valuation instruction would come with all known data.

In essence valuation will have moved away from expressing a professional opinion to be replaced with data analyst skills. Is this the first shot of the creation of a two tier valuation and mortgage market – (1) 100% mortgages based upon data analyst Reports and (2) restricted mortgages based upon all other opinions?

As always, part of the answer is focused in market education: most of the public will be unaware of the politics of the art of valuation (and they may not even care about such matters) and therefore may be happy to continue to blindly accept whatever the Loan Company tell them and not elect to pay for an independent assessment of worth, perhaps also not even commissioning a private condition survey, to assess the real risks of purchase.

Credit Crunch showed how financial Institutions can be systemically rotten and not put the client first: New Home loan Valuations and Valuers are in danger of being sucked into a similar vicious cycle unless true leadership can be shown by the Royal Institution of Chartered Surveyors (the leading body that regulates Valuers) who need to rise above the dictates of the Council of Mortgage Lenders.

We are:

• Chartered Surveyors (residential market buildings/services plus on some commercial units)
• House/Flat Market Valuers
• Home Inspectors
• Domestic (non-new Homes) Energy Assessors
• Thermal Imagers
• Residential Property Consultants
• Expert Witness Reports (dispute and Court Action reports).

We work with:

• Private Individuals
• Portfolio Owners
• Local Authorities
• Solicitors
• Estate Agents
• Relocation Companies
• Building Companies
• Developers
• Accountants

We work in:

• Bournemouth, Winchester, Southampton, Portsmouth across to Chichester
• Salisbury, Andover, Newbury, Basingstoke, Petersfield across to Midhurst.
• New Forest, Totton, Romsey, Bishops Waltham, Wickham, Fareham, LocksHeath, Titchfield, Eastleigh, Havant, Waterlooville…..
• All Villages in-between; all Towns aroundabout: into surrounding neighbouring Counties.
• For higher value services and premises we will travel greater distances (including for Brits buying abroad).

Our Survey Products

The right choice is essential to match your needs:

Our surveys come in three differing levels:  1, 2 and 3.

NEED ADVICE?

Try the SEARCH Box facility (below, left), click on an Article Heading (below, left) or simply read on….

• BUILDING SURVEYS with or without VALUATION advice
• HOME VALUATIONS by an RICS Registered Valuer
  
• HOMEBUYER REPORTS or SELLER SURVEYS
• AUCTION or QUICK-WALK-THROUGH Appraisals
  
• Update your BUILDING INSURANCE SUM INSURED
• Is DAMP REALLY DAMP or actually CONDENSATION as a result of your lifestyle?
• Is that CRACK the beginnings of SUBSIDENCE?
• Divorce or Negligence Court-Compliant EXPERT WITNESS Reports/Valuations.

Hello, I’m Stuart Parrett. I am a truly independent, knowledgeable and experienced Chartered Surveyor and housing specialist. I am in the PEOPLE and HOMES Business where Information Discovery is all important.

I survey homes for faults and worth/value but it is not what I do but HOW that separates PROinspect from competitor surveyors.

THE HOUSE DOCTOR IS IN:

HOW CAN I HELP YOU?

SOMETHING of VALUE for you —-

1-  Do you have a SEPTIC TANK DRAINAGE system?

NEW Environmental Permitting Regulations cover even old septic tanks, which may previously have escaped regulation, but are now controlled and must be formally registered with the Environment Agency by 1^st January 2012. Failure to register is a criminal offense. Click this link PrivateDrainageChanges2012 for an Environment Agency Brochure that explains all.

2-  CONDENSATION SEASON IS UPON US – have you looked in the back of the wardrobe recently or in “that corner”?

Cold = drop in dew point = cold surfaces will attract condensate: Quick Fix – create airflows and reduce the amount of vapour in the air. Longer Term Fix = Raise the wall temperature by lining it with XXXX; properly kill off mould spores; introduce sensors that apply venting or temperature changes to the environment. Simple.

What often works is opening the window for as long as possible during and after sleeping/baths/showers/cooking (this removes water vapour that then cannot condense on your clothes and walls). You loose heat during this process and so you need to learn how to achieve these goals intelligently without icicles forming on your nose.

For more information on me, my CV etc… – click here and scroll down. Alternatively, look me in the eye by watching a short VIDEO – CLICK HERE. TheHouseSurveyor at YouTube will also deliver several important messages for those looking to purchase or those you wish to become Residential Surveyors and/or Valuers.

Those who have kindly provided testimonials for me say that I can be considered a safe pair of hands, somebody who is a real communicator and a provider of detailed and robust opinions.

Good reasons for using me in the central south coast area include that I take the time to listen to you and then help you make the right choice of survey product and have it completed at the right time. After this I genuinely communicate with you and don’t simply mail a report to you and that is it. No, I am always available for questions and meetings because you need to be re-assured your purchase is both a wise investment and you are not buying a problem.

I protect the biggest investment you’ll ever make in your life – your home – and I work with you every step of the way…..

I’ve brought together a lot of valuable information to help you organise property problems, alterations, private surveys and other services surrounding ownership, maintenance, sales, purchases and Expert Witness Reports.

CALL ME for a free chat and advice on 078 3636 3040 —

• THE GOLDEN RULES OF SELF-PROTECTION DURING HOME BUYING =

1. When your “offer” has been accepted make sure you already have a loan deal secured in principle
2. Make sure you DO NOT agree to a combined Loan Valuation and Private Survey
3. Actually speak to a Surveyor (PROinspect down south) – do not accept an Assistant or a Secretary
4. Find out your Survey Product options, fee costs and the manner in dealing with any special concerns you have
5. Do not fall for quick deals or “linked” services often packaged by costly middlemen Agencies.

STUART PARRETT

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Browse the site and when you’re ready to ask for advice give me a call or fill in the Form on the right. To get the best out of us you need to be briefed as to your options, survey costs and a lot more. As a starting point be as specific as you can as to what you need from us – use the CONTACT FORM (top right on your screen): EG: Detached house – perhaps 50 years old – £400,000 agreed – Building Survey with Valuation needed – being sold by XXX Estate Agents.

PROinspect are led by Stuart Parrett who has an unrivalled pedigree as a specialist Home Surveyor of over 35 years Hampshire experience.

If you wish to read even more of my views on a host of house and survey matters go to ezinearticles.com by clicking of the above icon. Or follow me at Twitter (@SurveyAuthority).

PROinspect have the focused philosophy to achieve an advanced level of property inspection and high quality of written reports. Our skills and experience are available for client re-assurance purposes to ensure you act on only the best advice and opinions.

About Stuart Parrett

Stuart Parrett is a rare breed – a specialist residential property Chartered Surveyor with over 35 years experience in Hampshire. His unique blend of qualifications, local knowledge, vast experience, professional pedigree and long menu of survey products marks his Practice out from the crowd. He trained in south Hampshire and has made it his duty to be been highly involved with the Royal Institution of Chartered Surveyors, the Awarding Body of the Built Environment, Surveyors & Valuers Accreditation and other Industry “names” in multiple capacities, including  for training youngsters and less experienced individuals.

Stuart has completed many years of voluntary Surveying service with the CAB and has always been an effective communicator. Indeed, his reporting and forensic skills have been, and are used by the legal professional and the Courts in the guise of Expert Witness Reports in cases of errant Building Contractors or negligent Surveyors and Valuers.

The mainstream service that PROinspect pride themselves on is House Surveying. Whether this is for sellers, buyers, landlords, corporate clients or individuals make no difference: Stuart has a passion to deliver relevant, simple-to-read professional reports tailored to clients needs and budgets.

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Our aim?

TO GENUINELY HELP ANYONE INVOLVED WITH PROPERTY TRANSACTIONS or WHO HAS PROBLEMS.

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Why use PROinspect?

So what do we do that marks us out from our competitors?

1. We specialize in residential forms of property and always have done.
2. We complete ongoing training far above what is generally required in our profession.
3. We communicate with our clients: we need to know what drives any referral to us, what is worrying you, what you wish to achieve with/in the property, etc
4. We match the right survey product to the property type, known defects reported to us plus clients’ survey budget and expectations so our client receives the best option for their stated needs.
5. Before we inspect we complete a varied array of fact finding (internet and other database searches). This allows us to modify our On-Site Work-Sheets to include specific reference to potential adverse matters that may affect the home you are buying. By this method we can drill down to the nitty-gritty quicker and more accurately to our mutual advantage.
6. We use modern survey aids as and if required: we go beyond traditional cursory inspection means.
7. Where possible we always interview the sellers/occupiers and ask searching questions that may reveal latent defects and/or problems.
8. Back at the office we then complete any required further internet or other researches that our site inspection has shown us to be essential.
9. Finally the report is prepared with the specific client in mind – WE DO NOT SHOE-HORN DATA INTO A “ONE SIZE FITS ALL” REPORT.
10. After the client receives our report we don’t go to ground. If you need further advice and help we are available to you and at no extra charge.