What is a Commercial Building Survey?

A commercial building survey provides you with much more than merely a financial asset valuation. It also provides a deep insight into the current condition of a building, including information on building defects, materials, construction and if there are any hazardous materials present, such as asbestos. The survey may also suggest any necessary corrective work that would support any claim for a price re-negotiation.

Commercial buildings can be substantially different from residential properties when it comes to surveys. The structure of the building may have been built using reinforced concrete, cladding, and steel, which required a completely different approach to that used for a domestic building survey.

Here at VKB Consultancy, we are independent RICS Chartered Surveyors. We provide impartial assessments to protect the interests of our clients. VKB consultancy follows the published guidelines, including the RICS Guidance Note – Building Surveys and Technical Due Diligence Commercial Property (hyperlink) which allows us to deliver a survey that serves as a respected tool, helping clients manage their commercial property.

A building survey offers valuable and professional guidance on any issues that may cause disruption to your interest in selling leasing or buying a commercial property. We provide a high level of attention to detail, ensuring that we fully understand the construction of a building, the current condition of the building and how it will meet the requirements of the client.

When planning a Commercial Building Survey, the first thing would be to discuss and review your circumstances and requirements. This will ultimately establish the level of advice that is required and whether this is in the context of an existing ownership. It will also determine whether it is the purchase of both a freehold and a freehold with tenant in situ, whether it is a new lease or an assignment of a lease. It is also to understand your proposals for the property.

Before organising an inspection, we will also review whether there may be any access issues. If you were planning to extend or alter the property once the deal has already been processed, you may also want us to include preliminary advice or feasibility reports. The content and format of the report can then be tailored to your requirements and a quotation provided accordingly.

If you are the owner of a commercial property, or you’re looking to purchase one to then enter a lease, contact us today. We can provide advice and recommendations regarding the condition of a commercial building!

What Is A Bat Survey?

A bat survey can ensure you take all the necessary steps to avoid long term damage or impact to a pre-existing bat population, while still seeing your project come to fruition.

A bat survey will determine what species of bat are present, estimate numbers of bats, find bat access points, and assess how and when bats are using the building. Finding bats is a skilled operation and building owners or managers will need to commission a bat specialist consultant licensed by Natural England. 

Why Are Bats Protected In The UK?

Bats play an essential role in pest control, pollinating plants and dispersing seeds. All bat species in the UK are protected by law because their numbers have declined so dramatically. The decline is due to loss of feeding habitats and flight lines, loss of insects to feed on, and development affecting roosts. Bats are becoming more reliant on urban habitats, where they roost in buildings and forage in nearby wooded parks and gardens.

They are protected by international and domestic legislation; namely, the Wildlife and Countryside Act of 1981 and Conservation of Habitats and Species Regulations 2017.

When Might You Need To Undertake A Bat Survey?

If you are planning to undertake work on a property that you own, or are in the process of purchasing, where you might interfere, disturb or disrupt a bat in its natural habitat then you will likely need to undertake a bat survey 

Local authorities are obliged as part of their local planning policies to ensure the conservation of biodiversity, including bats and other species protected under the European Habitats Directive. As a result, they need to assess every planning application against these criteria and will make a judgement on your application. You will need to undertake a survey if there is a ‘reasonable likelihood’ of bats being present.

How Do You Conduct A Bat Survey?

A bat survey will be needed to be conducted during bat survey season and will need to be conducted by a licensed bat surveyor. As bats often roost in inaccessible crevices there may be no obvious signs of their presence on the outside of a building. Therefore, it is likely to be necessary for a bat specialist to conduct a daytime preliminary roost assessment followed by further surveys. Initial roost inspection surveys can be carried out at any time of year, however surveys that require bats to be active are carried out from May to August. Historic England have a handy table of the recommended months for different survey types >> click here to view.

How Long Are Bat Surveys Valid For?

Typically, bat surveys are valid for one to two years. However, there is a risk that out-of-date bat surveys can impact building plans and will need to be addressed at a later date, therefore both private developments as well as commercial developments should be mindful of ensuring the bat surveys conducted are in date.  

Should You Get A Bat Survey Before Applying For Planning Permission?

It is advised that you carry out a bat survey as early as possible in the process, particularly if there are any signs of potential bat activity. This will save you having to consider the costs of mitigation later on in a project, at a point where it may be too late, and you may find you are engaging in illegal activity. This will also ensure you can implement any necessary actions before the bat survey season begins.

Do You Still Need To Get A Bat Survey Even If You Think You Don’t Have Bats?

If the building or development even has a small chance of bats being present, we recommend it is worth commissioning a survey to ensure no bats are present.

What Do I Do If Bats Are Discovered?

If bats are discovered after a Preliminary Roost Assessments, then phase 2 of the survey will include a more detailed assessment of the area to establish how the feature is being used and by what species. Unlike the Preliminary Roost Assessment, the phase 2 survey must be conducted within a certain time period (between May and September), as this is when bats are most active. This is generally referred to as the bat survey season, and it is vital that any necessary bat survey preparation bears this timeframe in mind. This enables ecologists to actively measure their presence, in order to establish the exact impact of a potential project on the bats present.

Some mitigation can be undertaken to enable you to continue with your planned development, however often this can only be undertaken by acquiring a bat licence. The type of bat licence should be discussed with an ecologist but may include either a full licence or bat mitigation class licence (BMCL). The BMCL is only available for certain species and is aimed at low impact situations and is a special type of licence restricted to only some ecologists.

VKB Building Consultancy do not undertake bat survey’s, but we work with lots of fantastic professionals and would be more than happy to recommend someone, so please do get in touch.

Common Issues Found During A Property Survey

Now that you’re set on purchasing your new home, you need a surveyor to compile a report on your prospective property purchase. You’re hoping for a clean bill of health for the new house you plan to call home. However, it is important to note that problem-free survey reports can be extremely rare, especially if the building is older. But what could be so bad that the surveyor may uncover?

There are a few common house survey problems that still show up on reports often. Some of these include:

Asbestos

Despite asbestos once being used for construction and fireproofing, it is now a material that strikes fear, especially when to referred to in reference to your home. However, if asbestos is uncovered during your home survey, not all is necessarily lost.

In most instances of discovering asbestos, it can often be safely contained by a specialist if it hasn’t been damaged or is in a poor condition. If the asbestos is found in such a condition, then the asbestos must be removed by a professional in such field. The cost of this removal can vary due to different factors of the removal, such as where it is found and how much of it there is.

Damp

Damp is also a very common issue flagged up by property surveyors. It can affect the structure of the building as well be extremely detrimental to our health. Discovering that damp is present in your potential new home could not only save your property but also a life.

Like the Asbestos, Damp can be rectified quite easily, but this can also depend on how bad the problem is. If the issue stems from condensation, the fix is very simple, however damp-proofing requires expert help and can be extremely costly. If the conducted survey shows a serious damp issue, it is recommended to acquire a further survey conducted by an approved damp surveyor. Conducting this additional survey will provide additional insight into the type of damp you are dealing with as well as the full extent of the issue.

Cracks

Cracks are incredibly common in most homes, yet although they may look unnerving, they don’t always mean that there is a huge problem with the home. The key is to understand the cause of the cracks. Your survey will inform you of any underlying issues that are associated with the cracks.

While cracks are a normal part of home ownership, they can also be a clear sign of subsidence. Structural movement isn’t uncommon, but there are levels of severity to be aware of. Your building surveyor will be able to inform you if there’s an issue that will require further investigation.

Boundaries

Property surveys not only take the internal factors of a property into account, but also the external factors of the home. Your surveyor will inspect the property grounds and consider the conditions of elements such as boundary walls and fences.

It is common for issues to become apparent during this part of the inspection, especially if the boundaries are parallel to any public property, this is because the security of your home could be at risk. It is also important to note that an issue such as a broken fence may be overlooked during a home survey report as this is usually not seen to have an impact on the value of the property.

Unapproved extensions and alterations

If the property has any additions or alterations to the original structure, they must be accounted for. This means that they need to be compliant with the current building regulations. An issue that may be presented here is that the regulations for extensions changes often, so an amendment to the property that was completed by the previous owner, may have been while a different law was in place.

However, Regularisation allows for retrospective approval, which can be gained from the local authority’s building control body. It is important to note however that only work carried out after 11th November 1985 can be approved via regularisation. 

Drainage Issues

Drainage issues can often stretch from faulty drainpipes to sagging gutters, both of which can be highlighted in your building survey report. A lot of the time, drainage related issues may seem insignificant, but their impact on your home can be huge if they are left unchecked, which is why it is included in the survey. Identifying and rectifying any drainage issues early enough won’t send costs through the roof if they are caught early enough.

If you are affected by one of the issue above, you might find our article ‘Using A Building Survey Report To Negotiate A Sale’ useful. Please feel free to Contact Us if you would like advice.

Top Tips For Purchasing A Commercial Property In The UK

Commercial property is an attractive choice for investors because ‘bricks and mortar’ potentially offers healthy capital growth, a regular monthly income, and greater security than investing in stocks and shares.

Commercial property comprises a diverse range of property types including office space and retail establishments. It also refers to factories, industrial units, warehouses, and car parking facilities, as well as leisure establishments, such as restaurants, pubs, hotels and gyms.

According to the British Property Federation, the commercial property sector contributes over £100bn to the UK’s economy each year (about 7% of the total).

Advantages of owning a commercial property in the UK: 

·      One of the major advantages of commercial property investment in the UK is that leases are longer than those in the US and EU, and they are longer than leases on UK residential properties. The average lease length for an office is eight years.

·      Your property is likely to increase in value over time.

·      You can draw upon the equity as collateral if you need finance for your business.

·      You can rent the property out to tenants.

·      There are tax benefits to owning commercial property.

·      If you want to change the space, you have more control to do so than if you were renting.

Drawbacks of owning a commercial property:

·      You will have to make a considerable down-payment at the beginning.

·      You are responsible for making repayments if the property becomes vacant.

·      Your cash will be tied up in property.

·      Whilst tenants are likely to be responsible for non-structural repairs (this would be set out in the lease), you will be responsible for any structural repairs needed.

VKB Building Consultancy has 15+ years’ experience advising clients about commercial property purchase. Here are some of our top tips…

Consider why you want to purchase a commercial building?

You should first question what sort of building you want and why. Will you be using it for business purposes or is it an investment? Consider the location, the local and national economy and the lending market.

Your buying motive will help narrow your search and provide a starting point for what to look for. If you’re looking to buy a commercial building for use, then it’s worth considering whether or not you’d be better off on a short-term rent or lease.

Have a good understanding of the planning issues.

Consider what class of building you need

The Use Class Order sets out the use classes of buildings in the UK. Each Use Class comes with its own unique set of rules and regulations that forbid uses outside the scope of the class. It is sometimes possible to change the Use Class of a building using Permitted Development Rights.

You should also consider the location of the property. This is crucial if you’re hoping for the building to appreciate in value so you can lease it or sell it later; however it is also important if you need to take out Planning Permission on the property for use changes, renovations or extensions. 

Chartered Surveyors can advise you on the location of the building and property checks will reveal any restrictive covenants, Article 4 planning restrictions or other issues that could affect your redevelopment plans. 

Consider the energy rating

When looking for a new property to purchase, you should look for a commercial building with at least an EPC rating of E or above. 

MEES, or Minimum Energy Efficiency Standards, are minimum requirements for EPC ratings enforced by the government. From April 2023, an extension of the MEES regulation will prohibit landlords from leasing out commercial buildings with an EPC rating of F or lower. 

Purchasing a property with a lower EPC rating than E, could lead to difficulties when the new UK law is enforced.

Research the Market

Once you have defined the type of property you are looking for, researching the market can help bolster your position.

Examine trends in the local and national commercial property market, considering factors such as current values, supply, availability of commercial mortgages and – if you plan to let the property – tenant demand and rental values.

Seeking advice from a specialist commercial property adviser is recommended. Not only will they possess in-depth local market knowledge, but they will also have intel regarding which properties are due to come on the market, plus any off-market opportunities.

Make sure the property is financially viable

Calculating realistic budgets and making profitability/viability checks is one of the most important stages of commercial property investment. Ongoing costs vary between buildings, but it’s crucial to not underestimate the role they play in your budgeting.

Here are some metrics that you should be aware of when analysing and assessing the viability of purchasing a commercial property:

·      Net Operating Income: Calculates the net operating income of a building after operating costs.

·      Debt Yield Ratio: Calculates loan divided by NOI to provide a risk indicator.

·      Cash-on-Cash Return: Calculates net cash flows divided by the initial investment.

·      Net Present Value: Calculates inflation-adjusted cash flows and profits throughout time.

·      Cap Rate and Net Yield: Calculates rental income divided by net operating costs without mortgage payments factored in. Net yield does factor mortgage payments in.

·      ROI: Calculates the overall return on investment.

You’ll also need to provide for:

·      The initial investment.

·      Surveyor and legal fees.

·      SDLT (Stamp Land Duty Tax).

·      Any repair costs and upgrades.

·      Operational and maintenance cost, either annual or monthly.

·      Environmental compliance costs.

·      Waste management.

·      Mortgage payments.

·      VAT.

And the bills don’t end there. You should consider the ongoing costs of maintaining commercial property too. If you plan to let out the commercial property, you will likely want to share some of these bills with your tenant.

The costs of owning a commercial property might include:

·      Insurance

·      Repairs and maintenance

·      Services, including security and cleaning

·      Local authority charges, including waste collection

·      Retaining a commercial property estate agent to manage the building

·      Commercial mortgage repayments, if applicable

Exercise Due Diligence

Once you’re confident that the building fits your expectations/requirements and are happy with financing options, it’s time to make an offer.

Heads of Terms will be drafted by each party’s legal advisors. This will set out a timeline for conveyancing, carrying out checks, searches and surveys on the property and eventually, completion.

 At this stage, both parties will embark on the process of due diligence, which will first involve the following searches:

·      Local Authority Search

·      Drainage and Water Search

·      Environmental & Flood Risk Search

·      Highways Search

·      Chancel Search

After that, it’s essential to carry out a building survey with the assistance of a Chartered Surveyor. It’s normally advised that a full Building Survey is carried out on commercial properties.

If you’re hoping to extend or redevelop the property, then you’ll also need a planner to work with the surveyor. VKB Building can recommend a good planning company and are always happy to make introductions, or manage the process if you prefer.

Never rush the process of due diligence – the onus is on the buyer to uncover all necessary and relevant details of the property prior to completion.

Take Advantage of Professional Knowledge

Commercial real estate is a complex legal domain. Professional insight is an absolute must, there is simply no way that you can take on a commercial investment project without the assistance of solicitors and surveyors.

Enlisting a RICS Chartered Surveyor is crucial for the due diligence process. Your survey may alter the perception of the building, especially if major structural flaws are discovered. This could enable you to save vast quantities of money, or even save your property from catastrophic issues down the line.

We would also recommend you with an independent financial advisor when it comes to comparing financing options. When you delve into financing like bridging loans then there’ll be more options and risks to weigh up. It’s hard to account for investment risk without performing a rigorous economic analysis of the target asset.

Consider Tax Incentives

There are several tax incentives and schemes that provide relief for some commercial property investments. These do vary throughout time, and it’s also possible to find localised schemes to incentivise businesses to clean up and redevelop commercial property and land to strengthen the local economy, etc. Contact your local Planning Authority and discuss your plans.

Here are some current nationwide tax relief and incentive schemes:

·      Capital Allowance allows UK businesses to claim against their taxable profit under the Capital Allowances Act.

·      Business Premises Renovation Allowance (BPRA) is a tax incentive for converting or renovating unused qualifying business premises in a disadvantaged area.

·      Land Remediation Relief is a corporation tax relief. It provides incentives for qualifying expenditure incurred from cleaning up contaminated land.

·      R&D Tax Credits may also apply to your business if you wish to carry research and development work on the commercial premises.

Note that these forms of tax relief will apply in certain circumstances. HMRC or your local council or Planning Authority should assist you if they feel that you can claim.

Don’t Rush the Process

The Heads of Terms will help guide how long you have to complete due diligence checks before completion. However, it’s important to bear and mind that this isn’t usually contractually binding, so you are not obliged to finish everything within the timeframe.

If any problems arise or are highlighted, take your time to sort them out before exchanging contracts. It’s exceptionally difficult to take a step back after completion, so ensure that every base is covered, and no stone is left unturned before taking the final step.

If you are considering purchasing a commercial property, VKB Building Consultancy can help guide you from the outset. Don’t hesitate to get in touch!

Using a building Survey Report to negotiate a sale

A building survey report is a detailed report, created by a building surveyor, which describes the condition of each element of a house or commercial premises and identifies the property's defects, their apparent cause, the urgency of repair and maintenance options available. It may also include an approximate cost of repair.

If the condition of the property is positive, with no significant defects or issues, you have the reassurance that substantial expenditure will not be required at the time of purchase or in the future. This can give you the reassurance/confidence to proceed with the purchase at an agreed price, safe in the knowledge that you have made a sound investment.

But what if the report shows a negative result? Should you walk away? Or can you use the report to your advantage and negotiate with the vendor?

Should I walk away from the sale?

It really depends on whether you expected a negative result! If you were already aware of all the defects or issues outlined in the report, you may feel confident to proceed with the purchase, safe in the knowledge that there will be no additional, unexpected defects or issues (and related expenditure) in the near future!

If, however, the report highlights any previously unknown defects or issues, you may wish to reconsider your offer depending on the nature and severity of what is included in the report. 

First and foremost, speak to your surveyor so you understand the implications of anything highlighted in their report. They will advise you on the next steps, whether any further investigations are required and give you a comprehensive breakdown of the survey. Don’t be afraid to ask for advice!

If the Building Survey Report finds significant defects and/or issues and you are not prepared to invest the time/money that will be required to ensure the property is eventually in a good condition, walking away from the property is a sensible decision.

When should you negotiate on a sale?

If you are still keen to continue with the purchase, but the report has highlighted previously unknown/undisclosed defects with the property, you are potentially in a strong position to negotiate with the vendor.

The vendor may argue that the defects are obvious and that the purchase price is reflective of the defects. However, if the survey has revealed concerns about the property and you can quantify the costs to repair or maintain it, either now or in the future, it gives you a much stronger position to negotiate the sale price should you wish.

Negotiating a purchase price can be quite nerve-wracking and it is always worth bearing in mind that you could lose out on securing the purchase if there are other parties in involved (or if you upset the vendor). You should consider what you will do if the vendor refuses to negotiate. How much do you want the property? Would you still be willing to pay full price for it? Can you afford to rectify the property without a discount? How much will you be saving in the long run? Is it worth it?  

But if there is a significant, unknown cost associated with purchasing the property, you are probably in a good position to make an offer.

Would a Building Survey put your mind at ease or help you save money on a property you’re thinking of buying? Contact us today!

Do you need a building survey for a new build property?

The UK has seen a large increase in the number of new housing estates being built in the last few years. With this comes the question - is a building survey for a new build home worthwhile?

It is common to assume that a new build home won’t require a survey. After all, it’s brand new so what could possibly be wrong with it? In an ideal world, there would be nothing wrong at all, and new build homes have a NHBC guarantee in case anything goes wrong (see below for more info about this). But whilst you don’t need to get a survey done on the property you are purchasing, given the hundreds of thousands of pounds it costs to buy a property, we would recommend that a few hundred pounds to conduct a survey is definitely worth it for peace of mind as it could help you avoid expensive and unwanted surprises in the future.

Why is it important to conduct a new-build house survey?

When a homeowner decides to commence a survey, the same problems regularly occur when it comes to new-build homes. The most common issues found when the survey is complete tend to be snagging issues, mainly due to the job not being finished to the standard that would be expected. But our surveys have also found more serious issues, that could lead to problems with damp, ventilation and insulation, as well as have safety implications in your new home! Examples we have seen include:

·      Damp proof courses that have been bridged.

·      Doors and windows badly fitted.

·      Waste pipes and vents not connected.

·      Drainage not connected to the road.

·      Staircases that were stored in the open and have since split and warped as soon as they started to dry out after installation.

·      Coping stones badly fitted causing water penetration.

·      Render badly applied, that isn’t thick enough and is failing.

·      Sliding door screens that are so heavy they could not work.

·      Flashings that have fallen away because they were never fitted properly.

It is much better to sort these issues out before you move into your home.

Types of house survey  

It’s worth noting that in March 2021, the Royal Institution of Chartered Surveyors (RICS) launched new formats for home survey reports. So what was once known as Condition Report, HomeBuyer Report and Building Survey have been changed. 

RICS Home Survey – Level 1

The RICS Home Survey Level 1 is the most basic survey. It is suitable if you’re buying a conventional property built from common building materials and in reasonable condition. It was previously called a Condition Report.

The Level 1 survey provides a ‘traffic light’ rating of the condition of different parts of the building, services, and the grounds, showing problems that may require varying degrees of attention and an assessment of the relative importance of the problems. It also includes a summary of risks to the building, people and grounds. But the report doesn’t go into much detail and doesn’t include any advice.

RICS Home Survey – Level 2

Previously called a Home Buyer Report or Homebuyer survey, this mid-level survey is a popular choice for most people buying a conventional property in reasonable condition. It covers everything you’d get in a RICS Home Survey Level 1, plus we check roof spaces and cellars. 

You’ll also get recommendations for further investigations where the property surveyor is unable to reach a conclusion with reasonable confidence. The report will also give advice on budget for any repairs and on the amount of ongoing maintenance required in the future.

RPSA Home Condition Survey

An RPSA Home Condition Survey is equivalent to the RICS Home Survey Level 2. Offered by the Residential Property Surveyors Association rather than RICS, Home Condition Surveys are produced in a consistent, consumer friendly format. They’re independently checked to ensure consistency and quality. And you’ll get information like broadband speed, damp assessment and boundary issues.

RICS Home Survey – Level 3

The RICS Home Survey Level 3, also known as a full structural survey and previously as a RICS Building Survey, is the most thorough survey offered by RICS.

It is a good house survey option if you’re buying a property over 50 years old, of unusual design, is a listed building or in poor condition; if you’re planning to undertake renovations or have any concerns about the property.

The Level 3 survey will include everything you would get in a RICS Home Survey Level 2, plus it will describe the identifiable risk and causes of potential or hidden defects in areas not inspected. It will outline the likely scope of any appropriate remedial work and explain the likely consequences of non-repair. Plus you’ll get recommendations in respect of the priority and likely timescale for necessary repairs. While it is a more expensive option, it is thorough. 

RPSA Building Survey

The RPSA Building Survey is the highest level of non-invasive survey from RPSA. You’ll get everything from the Home Condition survey plus more comprehensive descriptions of construction and defects. It also gives explanations of how to go about rectifying defects and the consequences of not doing this. 

Survey versus NHBC guarantee

As mentioned above, you may feel confident that if something does go wrong with your new build, you are protected by the NHBG guarantee. In our experience, unfortunately, this is not necessarily something you can rely on.

The NHBC warranty is a form of insurance. It is supposed to compensate home buyers or fix any faults in the new property if there are problems within the first 10 years. However, many disputes have arisen between home buyers and the NHBC. It’s notoriously difficult to make a claim stick and there’s very limited cover after two years. Too often, many homeowners get a surveyor involved at this stage, rather than before they bought their new property. A simple search on Google for NHBC warranty problems will find lots of examples.

So, which building survey is best if I am purchasing a new build?

We would generally advise that you go with the best survey you can afford. The level 1 and level 2 RICS survey’s will give you some reassurance, but for full peace of mind – and to really safeguard your investment – we would recommend a level 3 RICS survey.

For more information and to see how we can help, please don’t hesitate to get in touch.

What is a Schedule of Condition?

A Schedule of Condition is a detailed, factual record of the condition of a property which is usually retained to use at a future time to establish the previous condition of the premises. The survey is typically included within a Lease to limit Tenant’s repairing obligations to the condition of the property at Lease commencement.

To fully record the condition of a building we undertake a Full Schedule of Condition. This would typically include a general description of a property, a detailed schedule which would document the form of construction and condition of each building element, supported by photographic and sometimes video records to give evidence. Specialist information can also be included in a schedule to fully record a buildings condition, for example a CCTV Survey of the underground drains, an electrical test report of the electrical system, an engineer’s report on the lifts etc.

When is a Schedule of Condition required?

For commercial property leases, a schedule of condition can be required when a new lease is entered into to confirm the condition of the property. This ensures that the condition recorded so that any existing defects are identified prior to a commitment to lease being made and can help with lease negotiation. It can also be used to establish responsibility for dilapidations and reinstatement, at the end of a lease.

A schedule of condition might also be prepared before construction work begins for adjacent properties or structures that will be retained, or if part of a building is being refurbished. This not only helps protect against potential claims from neighbours, who may only notice pre-existing defects in their property when the noise and vibration of construction begins but can also establish contractor liability for damage to the employer’s properties.

For both commercial and residential properties, a schedule of condition can be prepared where the Party Wall etc. Act 1996 applies. This is to provide evidence of the condition of the neighbouring building prior to works beginning. The party wall surveyors can then undertake a re-inspection of the building and determine whether any damage has occurred and what repairs should be carried out. 

What is the difference between a Schedule of Condition and a Condition Survey? 

There is often confusion between a Schedule of Condition and a Condition Survey. The main differences are that a Schedule of Condition is purely a record of the condition of the building to be appended to an Agreement whilst a Condition Survey (often also referred to a building survey, pre-acquisition or pre-lease commencement survey) is prepared to not only show the condition of the building but identify repair works required, usually with costs to assist in planning maintenance works which may be needed. VKB Building Consultancy can advise on the most appropriate type of survey that is required and complete the survey if necessary. Our surveys can be appropriately tailored to meet each individual clients specific requirements. 

Why instruct a surveyor?

It is often thought that by simply having some photographs on file these can be used to reduce a Tenant’s repairing liability under the term. If the photographs are not specifically referenced in the Lease and the Lease is held on standard full repairing terms, then it is unlikely they would limit a Tenant’s obligation and the Tenant could be liable for putting the property into repair, even if it was clearly in disrepair at the start of the Lease. This is why it is important to obtain specialist advice from a Chartered Building Surveyor. An incomplete, inadequate, or poorly drafted Schedule can often result in protracted negotiations, disputes and may result in negating the desired effect of undertaking a Schedule and fail to fulfil the intended purpose. Our knowledge will help reduce your liability and save you thousands of pounds at the end of the lease. 

Our Comprehensive Guide to Pre-Acquisition Surveys

Why do you need a Pre-Acquisition Survey?

As an owner, a pre-acquisition survey will help you maximise the value, condition or use of your property and minimise liabilities and ensure you are safeguarded from changing statutory requirements. For individuals and businesses wishing to purchase or lease, pre-acquisition surveys provide peace of mind and detail often not found in lender valuation surveys.

What is a Pre-Acquisition Survey?

A pre-acquisition survey (sometimes referred to as a building survey or structural survey) is a comprehensive assessment of a property’s condition and structure. It allows you to understand the current state and structural integrity of the property, whether it is suitable for the way you plan to use it and what future costs and other liabilities that you will be responsible for. 

What should the Pre-Acquisition Survey include?

Your survey report will include details of the building extent, construction and location, and detailed assessments of the internal and external condition and structure of the property, along with comprehensive photographs. It will also include information on any deleterious or harmful materials (e.g., asbestos) that were identified, advice on legal compliance issues, consideration of environmental hazards and advice on whether specialist investigations. such as drainage surveys or land contamination assessments, need to be carried out.

Benefits of completing a Pre-Acquisition Survey

There are many benefits of a pre-acquisition survey. It can help you make an informed decision on how much the property is worth. It can give an estimate on the life cycle costs of a building or property, as well as advice on refurbishments or improvements and repair obligations. This information can be essential at the beginning of the process in order to negotiate the most appropriate purchasing deal. A survey report also provides a level of protection if anything goes wrong.

Another key benefit of a pre-acquisition survey is that it helps to ensure due diligence and keep tenants safe in the property. By reporting on statutory issues, the owner and buyer can be aware of any issues with the property that need immediate attention such as asbestos or land contamination issues.

What happens when the survey is complete?

When the results of the survey are received, the next step is to create an action plan. You should consider any parts of the survey that were of any particular concern to you or if there was any presented information that may lead you to believe you will encounter any significant cost expenditures in the future.

VKB Building Consultancy carry out Pre-Acquisition Surveys for private and commercial premises of all types and can adapt the report to suit your requirements. As chartered surveyors, we adhere to the RICS and CIOB strict codes, such as impartiality technical ability and indemnity, ensuring that all surveys are carried out to a gold standard. This means that our reports can be reliably used in price negotiations and can be trusted by all parties. Click here to contact us for more information. 

VKB Building Consultancy Shortlisted for StartUp Awards National Series

We are delighted to announce that VKB Building Consultancy has been named one of the most exciting new businesses in the region after being shortlisted as part of a brand new awards programme.

The StartUp Awards National Series has been launched to recognise the booming startup scene across the UK which has accelerated since the pandemic began. In 2020, when most of the world was shutting down, more than 400,000 startups were set up in Britain, with similar increases seen in other European countries.

There was stiff competition with over 2,500 applications received in response to the Startup Awards National Series’ first-ever call for entries.

Victoria Bollands, Director and Founder of VKB Building Consultancy said: “I am absolutely thrilled that VKB Building Consultancy is a 2022 finalist in the YKS, HUM & North East England region in the Construction & Building Services StartUp category. The business was launched in the middle of the pandemic and we have worked incredibly hard to deliver services to our clients during this challenging time. The nomination really does means a lot to me!”

Supported nationally by BT, EY, Dell & Intel, the programme will celebrate the achievements of the amazing individuals across the UK who have turned an idea into an opportunity and taken the risk to launch a new product or service.

 Co-founded by the team behind the Great British Entrepreneur Awards, the new series follows the success of the Wales StartUp Awards, after organisers recognised the exceptional potential in the startup scene across the other British regions.

 Professor Dylan Jones-Evans OBE, the creator of the StartUp Awards National Series, said: “​​New firms are important for generating economic prosperity, employment opportunities and innovation. Since 2016, the Wales StartUp Awards have celebrated this amazing annual contribution to our economy by entrepreneurs and the impact they have on communities across the nation.

 “Given the sheer volume of phenomenal startups we’ve heard from since then, as well as the huge post-pandemic shift in people’s desires to take their career in a new direction and set up a business against the odds, we felt it was the right time to take the programme nationwide. We’ve been blown away by the standard of entries in this first year and truly look forward to crowning the winners in June.”

What are dilapidations?

As a tenant, choosing a commercial property to rent can be a complex decision, so it is important to understand the process. The same is true for landlords— your properties are your livelihood, and it is vital to protect your investment while also giving your tenants the best possible experience. At VKB Building Consultancy, we believe you should be as informed as possible when leasing or letting commercial property, and so this week we are discussing a potential source of dispute within the landlord/tenant relationship— dilapidations.

So, what exactly are dilapidations? They are the repair, reinstatement and redecoration work and associated costs to the tenant, incurred at the conclusion of a lease, which represent the requirement to either bring the property back to the condition it was in before the lease began or as specifically required within the terms of the lease. This can range from cosmetic issues like painting and decorating, up to more serious and costly repairs like plumbing or roof repairs. It can also include removing any alterations or fixtures and fittings that the tenant has made during the lease term.

If the tenant has not met the required obligations under the terms of the lease, the landlord can claim these costs at the end of a tenancy by serving a legal document called a terminal schedule of dilapidations. As well as including costs for redecoration, repair, and reinstatement, this can also include the loss of rent incurred whilst repairing the property if the damage is severe enough.

Whether you are a landlord or tenant it is important to develop an appropriate & cost-effective dilapidations strategy.

At VKB Building Consultancy we advise our clients in respect of all dilapidations matters, including undertaking the following services:

• Dilapidation’s strategy advice for landlords & tenants.

• Preparation of interim & terminal Dilapidations Schedules for landlords, including negotiation of final settlements.

• Assessment of dilapidations liabilities for tenants, including negotiation of final settlements.

• General advice & guidance to landlords & tenants in respect of Section 18(1) of the Landlord and Tenant Act 1927.

• Defence for tenants in respect of interim & terminal Dilapidations Schedules; &

• Negotiating & monitoring the scope of works for both tenants & landlords.

The Royal Institution of Chartered Surveyors mandates the highest ‘gold standard’ of professionalism and qualifications within building consultancy; you should always choose a RICS regulated firm like VKB Building Consultancy to advise you in relation to commercial property whether you are a tenant or landlord.

We provide you with clear, impartial, and expert advice, to ensure that as a landlord your asset is protected and as a tenant you do not receive an unfortunate financial surprise at the end of a tenancy.

To discuss your commercial property interest and how we can help form and manage a dilapidations strategy, you can contact us at office@vkbbuildingconsultancy.co.uk

How one woman is helping to break the mould in construction

Victoria Bollands might not be the typical face you’d expect to see in the construction industry, but she has carved out an impressive and highly successful career and is now celebrating the first-year anniversary of launching her own building consultancy which has seen great success, despite the ongoing pandemic.

Based in Teesside, Victoria spent over a decade working for a household name in the industry before setting up her own business, VKB Building Consultancy. Covering both commercial and residential properties, the company offers building surveying and architectural design services as well as project consultancy– all underpinned by Victoria’s vision of offering a personal, refreshing approach.

Victoria said: “I wanted to take my experience and develop it into something more accessible – surveying can seem daunting and complex, so we’ve turned that on its head and pride ourselves on being approachable while still delivering the best possible service.

“This style of working has led to us building some excellent relationships in the industry as well as securing contracts with a number of blue-chip companies at properties across Teesside and the North East.”

Victoria’s growing team includes chartered surveyors and architectural technologists, all with many years of experience and Victoria is confident in delivering the full package to clients of every size, covering all requirements in a friendly and professional manner.

According to research, just 12.5 per cent of the construction industry is made up of women and this is something that Victoria feels strongly about and is keen to help increase and develop in the future.

She continued: “There are so many opportunities for women in the construction and property industry and I would encourage any girls/women wishing to enter the industry to have the belief that, with determination, they will be capable of forging a very satisfying and lasting career.

On starting a business during the global pandemic, Victoria said: “Whilst some sectors within commercial property experienced a slowdown, VKB Building Consultancy has enjoyed the strength of the housing market meaning a greater demand for RICS Home Surveys. As I result, I have expanded this side of the business during this time.

“There is currently a surge in property development, however current issues with material shortages and increased prices are causing some delays and difficulties. Despite this VKB Building Consultancy is currently advising on a number of large commercial repair and refurbishment projects in the North East.

“Regardless of all the circumstances I am happy to report we have had a great first year and I’m excited to expand, develop and see what the future holds.”