Whether you’re buying an unoccupied property to rent, or as a long-term project, buying a vacant property can have its risks. Some important factors to consider when looking to purchase an unoccupied property can include, how long has the property been vacant for? Is the property weather and watertight? Is the property connected to utilities such as water, gas and sewerage and are there any restrictions on renovating or demolishing the property?
Below are some common mistakes that could be avoided when it comes to buying an unoccupied property:
Lack of preparation
Before you start your property search, make sure you have a clear idea on how you want to use the property, as this could affect your final decision. If you wish to rent out the unoccupied property, then the location, size of the property and what is included within it e.g., parking space or a garden, as well as if it is a commercial or residential building, could affect the overall monthly rental price.
If you plan on turning the property into your permanent residence, then researching the local schools, transportation links, and council tax costs could help you determine what your priorities are.
No budget
It’s important for buyers to follow their heads, and not their hearts when it comes to buying unoccupied properties.
Before you start your property search, calculate exactly how much you want to/can spend or borrow to purchase the property, while also factoring in legal expenses, moving costs, and any work that may be required on the property. By keeping within your budget, and reserving some money aside for unexpected costs, unoccupied property buyers stand a better chance of buying a property more suited to their needs.
Ignoring legal and building restrictions
Property buyers should be able to find out from their solicitors or estate agents if there are any restrictions or legal requirements on an unoccupied property. Such restrictions or requirements could include:
- Special permission to be grated for renovations, extensions, or demolition of the unoccupied property. Listed buildings or properties of historical significance can often carry tighter restrictions.
- Major work may not be able to be carried out on the unoccupied property until the land has had an environment survey.
- Before the property can be habitable for residential or commercial tenants, the property must meet the legal requirements for it be rented or leased.
- A restrictive covenant could be in place, which can prevent property owners from doing certain things to the property.
What utilities are available?
With unoccupied properties, there is a much higher chance that the property could be lacking some of its essential utilities, especially if the property has been vacant for a long period of time. Be sure to check what utilities are available and in working order within the property and what may need to be connected in order for the property to be habitable.
These could include…
…To read the full article and explore more helpful guides, head over to the Guardcover website.
This article is for general information only and does not constitute advice or a recommendation. It does not take into account your individual circumstances. if in doubt, you should seek appropriate professional advice before acting on any of the information provided.
Guardcover is a trading style of Thistle Insurance Services Limited. Thistle Insurance Services Limited is authorised and regulated by the Financial Conduct Authority. Firm Reference Number 310419. Registered in England No. 00338645. Registered office: Rossington’s Business Park, West Carr Road, Retford, Nottinghamshire, DN22 7SW. Thistle Insurance Services Limited is part of the PIB Group.
This article was submitted by Guardcover as part of an advertising agreement with Today’s Wills and Probate. The views expressed in this article are those of the advertiser and not those of Today’s Wills and Probate.
