Glenn Hotchin, Director
I recently wrote about what it means to be a property finder and the fact that the work doesn’t end until a transaction is complete. While finding a home is key, it doesn’t change a client’s life until they can move in – so the sooner that can be actioned, the better.
Joined-up thinking from finding to adapting a home is critical, and the time between agreeing on a transaction and completing it is crucial in ensuring it’s the right home. Due diligence is essential for the success of an adaptation project, and you want as many answers as possible before the transaction is completed. Scene-setting, clear communication, and understanding your objectives all play a significant role in how smoothly this stage of the project progresses.
The two key aspects of due diligence focus on suitability and condition. We need to consider what this entails, when it should be carried out, what information needs to be provided, and how to avoid abortive costs. In a standard transaction, the usual process involves appointing a conveyancer followed by instructing a building survey—this is what an agent would typically expect. Ensuring a property is secure and off the market before incurring any costs is crucial to avoid unnecessary expenses. In England, a purchase is an intent to buy, subject to contract and survey – if you begin suitability or condition checks before securing the deal, you risk another buyer stepping in and acquiring the property.
While property condition is important, there’s little point in paying for surveys until suitability has been established. This should be the first priority once a transaction is agreed upon. A Suitability Report, conducted by a qualified professional, should assess how an adaptation scheme could work, outline associated costs, and highlight potential risks such as planning implications. This is not a final design but an initial assessment to mitigate the risks of purchase, with ongoing design and logistics discussed based on the findings.
Once suitability has been confirmed, you can then focus on the condition—again, following the correct order helps to prevent abortive costs. A standard Building Survey only provides limited insights and is often heavily caveated. At PLG, we produce a Pre-Purchase Report, which includes not just the building survey but also additional essential surveys that surveyors typically defer to specialists for, including:
- CCTV Drain Survey
- Plumbing Condition Report
- NICEIC Electrical Condition Report
- Asbestos Management Survey
- Damp and Timber Report
The results of these surveys provide a clearer picture, enabling you to budget accurately and mitigate potential cost increases before work begins—when you still have the opportunity to act on the findings.
In summary, the period between identifying a home, agreeing on a deal, and completing the transaction is critical to the success of an adaptation project. It’s also a time of risk – both in terms of abortive costs and the potential for a transaction to fall through. Understanding what you need, when, and how to communicate this to third parties is key to ensuring success. Sales progression is an art form and requires as much attention as any other part of the process to protect our clients’ interests as effectively as possible.
Glenn Hotchin
PLG Consultants, 25th February 2025
