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What things to consider when purchasing a buy to let property?


geek84

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I'm one of the few people who has had call to use the NHBC warranty after problems with a new build some 20 years ago.

At the time......and it may have changed since.... the builder was responsible for ANY defects for the first 2 years. After that there is another 8 years of cover for structural defects.

The NHBC investigated my problem, dealt with the original builder, drew up a schedule of work, got another builder to carry out the work. All carried out quickly, efficiently, with minimum disruption and to a very high standard. I was happy, had no complaints, cost me nothing and would recommend them.

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I'm one of the few people who has had call to use the NHBC warranty after problems with a new build some 20 years ago.

............and me back in 1977 and it took 18months for NHBC to sort out the roofing problem but anyway it's not so much the major things it is the really niggly things that don't seem to get the same attention and the problems experienced out there by new buyers is well documented.

Just one:

Quote

.I bought my place in May 2008 and was told by the site manager that any things I find that need doing, just to let him know and he'll have it sorted. I wasn't given the customer service number to call or anything. Months after reporting things that weren't done, I finally called customer service who told me that as i never notified them of the issues at the time they have to now re-log the issus and I have to wait for them to get someone out to fix them. I explained that the site manager said he'd get everything rectified but never did and they said that he shouldn't have done that - no apology or anything.

Example - they have the incorrct fire strip on my door and it made the handle really stiff to open and close - so much so that my wrists were in constant pain after 5 months of going in and out of my flat I stopped going out more than twice a day (to and from work). this was meant to have been resoved after 3 weeks and on week 6 I asked about it and was told that the wrong strip had been delivered to replace mine (although nobody had bothered to keep me updated and that I could choose between being broken into or having a fire risk!!!! 5 months later it was sorted but not before I mentioned the possibiliy of claiming due to RSI caused by their ineptitude....

customer services dept are also shockingly bad! I'd be embarrassed to work for them

There are dozens of similar stories and house builders have the same attitude as new car companies and don't get me started on Ford either! :D

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Well we can argue the details forever.

A few examples don't mean the industry is particularly bad at fixing faults. We can all find detailed problems and there are problem companies in any industry. Houses are complex constructions, its only to be expected that there will be a few problems and rogue builders with inefficient site managers.

I suspect the vast majority of new property buyers are very happy with their purchases just as the majority of Ford buyers are happy with their vehicles.

One only has to watch programs such as Watchdog or Rogue Traders to realise that occasionally people have issues.......it doesn't necessarily mean thats the norm.

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One only has to watch programs such as Watchdog or Rogue Traders to realise that occasionally people have issues.......it doesn't necessarily mean thats the norm.

Well Geek 84 will need to keep a sharp eye on what he is looking at and hopefully report back that everything is OK.

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I'm going to inspect the property on Thursday and will let you know if there any faults!

Look for door shutting and door shut line to door frame clearance.....that's a favourite of mine. :D

( amongst many ! )

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Yeah but Geek you should have been looking at the build quality whilst it was going on. I know I would and take pics at every possible stage.

Like Chestnut says faults don't often show until the heating comes on (or not).

I can't imagine buying a new build to rent out unless it was a really good, bargain purchase but good luck with it.

No doubt at first trashing you'll be back on here!

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No doubt at first trashing you'll be back on here!

Having your rental property 'trashed' is by no means a certainty.

The probability of it happening is a combination of bad luck &/or a bad landlord.

Amazingly there are thousands of property rentals every year that don't result in disaster.

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Good Morning Folks

i went to see the property hesterday. Eerytinh seems ok (unles I miseed abything). The only work that needs completing is:

1. The floor board in one bedroom is chipped. It was agreed this would be repaired.
2. The plaster needs to be scrapped off from upper floors.
3. Front door hinges needs touching up.
4. Repairs to concrete.
5. The colour of the tiles fitted in the kitchen and cloak room does not agree with what we requested. The agent said she will look into this.
6. Still need to see how the boiler works.
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Repairs to concrete sounds ominous!

Did you check ALL doors shut easily?

Did you run taps, flush loo all at same time to check drainage?

Ask for a gas safety certificate for the boiler - you may not get one since new property but worth a go.

I would go for money off rather than re-tile cloakroom.

Go back on a very wet day and check gutters and downpipes perform correctly.

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Geek,

Sounds like you are getting the hang of it. A few more suggestions (from experience):

Adequate expansion gaps where floors meet walls (If not cracks may appear where walls meet ceilings).

Creaking floor boards due to loose/ missing nails or screws (very annoying after carpets laid!) - especially near doorways and stairs (if any).

Locations of stop cocks including any loft isolation.

Tidy loft installations (if any) - pipework etc.

You should be given instruction on heating system operation. Gas Safety is by installation test certificate - check included in handover papers.

I'd press to re-tile the cloakroom!! - and then accept good deal offered not to!

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Hi Folks

Thanks for your replies.

The agent did say not to put the heat on too high a temperature because the construction has got a lot of water in it at the moment, and it needs to dry slowly.

I will be revisiting the property next week and will make sure to check everything. However, the only danger is that the carpets and to be fitted on Wednesday and the agent says it is better for me to come on Thursday. However, completion is on Friday when we give the money and get the keys!!

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Inspect after carpets? No! You need to inspect the flooring.

Have you been here? http://www.nhbc.co.uk/Warrantiesandcover/Homeowners/Movingin/

It has this useful checklist for you: http://www.nhbc.co.uk/NHBCPublications/LiteratureLibrary/HomeownerDocuments/filedownload,42392,en.pdf

You should ensure you are given some sort of NHBC type warranty - if not you could suggest withholding 2.5% retention (standard building contracts amount) until defects rectified.

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  • 2 weeks later...

Hi Folkd

I compleed on this property last week and hqave already found teantns to move in. So, everything went as I hopped.

I am now considering buying a 2nd BTL. The above BTL I bought for cash. Can I remortgage that one in order to buy a 2nd BTL?

The 2nd BTL is also a new build. In terms of whether or not it is rentable, I have asked a few letting agents and they have all given the nod, but non gave any specific figures of how much I could rent it out for.

Also, in terms of researching the area, do I just inquire whether or not there are good schools/employers/transport links. Is there anything else I should consider?

Thanks in advance for your responses.

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The above BTL I bought for cash. Can I remortgage that one in order to buy a 2nd BTL?

You can apply for a mortgage against the first property, offset the cost against tax and use the money raised to buy more property.

Wether it actually makes sound business sense with the current BTL mortgage rates, enormous arrangement fees and onerous terms and conditions is debatable. I suspect there won't be much profit in the deal for you. Given your lack of knowledge I suspect you will be seriously dissappointed.

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