If you are buying an office, an industrial unit or a mixed use building, the price is only the start of the cost. Roofs, services and structure can need significant spending in the first few years, and leases may push some of that cost back to you. A pre acquisition survey is how a buyer finds out before exchange, while there is still room to negotiate.
What the survey covers
- Structure and fabric: roofs, walls, windows, floors and visible structure, with defects explained and their likely causes identified.
- Building services: a visual review of heating, ventilation, lighting and lifts, with specialist testing recommended where needed.
- Statutory matters: evidence of planning permissions and Building Regulations approvals for alterations, access for disabled people and the asbestos register.
- Deleterious materials and environmental issues: anything that could affect value, insurance or future use.
- Costs: an estimate of repair and replacement costs over the next five to ten years, so the buyer can plan.
Reading the leases
For an investment purchase, the surveyor should read the leases alongside the building. Who is responsible for the roof and structure? Is there a schedule of condition limiting a tenant’s repairing obligation? Are any leases close to expiry, with a dilapidations claim to be made or lost? The answers shape both the price and the strategy after purchase.
Getting the most from it
- Instruct early. Allow time for the survey and for any specialist tests before exchange.
- Share what you know. Give the surveyor the particulars, leases, plans and any information from the seller.
- Explain your plans. A buyer intending to refurbish needs different advice from one intending to hold the building as it is.
- Use the findings. Defects and costs can support a price reduction, a retention or specific warranties from the seller.
After completion
The survey is also a baseline for the future. It can form the first version of a planned maintenance programme and a record of condition if a dispute ever arises.
See our Building Surveys and Defect Diagnosis service, and how we surveyed a portfolio of 74 properties.