What Are Conveyancing Property Searches?

When purchasing a property in the UK, one of the critical stages of the conveyancing process is the completion of property searches.

These searches are a set of legal enquiries made with various public authorities to gather essential information about the property you are planning to buy. Property searches ensure that you, as the buyer, have all the necessary information about potential risks or legal issues associated with the property. This is particularly important, as some issues may not be apparent from a simple viewing of the property.

Conveyancing searches are designed to uncover information related to the legal status of the property, planning issues, environmental hazards, and even details about utilities such as water and drainage systems.

The goal is to help buyers make an informed decision about their purchase, avoiding any nasty surprises after the sale has been completed.

The Importance of Property Searches in the Conveyancing Process

Property searches are an essential part of the conveyancing process because they offer critical insight into any potential risks associated with the property.

Although a seller is required to provide basic information about the property in the form of a Seller's Property Information Form (SPIF), they are not obligated to disclose all potential problems. In fact, sellers might not even be aware of certain issues.

Without these searches, buyers may enter into a legally binding contract without being fully informed, potentially leading to significant financial losses or legal complications.

Related:

What is Residential Conveyancing?

What does a Residential Conveyancer do?

How much does Residential Conveyancing cost?

1. Providing Legal Protection

Once contracts are exchanged, you are legally obligated to complete the purchase. At this stage, withdrawing from the sale without good reason could result in the loss of your deposit and other penalties. Conducting property searches before exchanging contracts provides you with a legal safeguard, ensuring that any issues are flagged and can be resolved before you are fully committed to the purchase.

For example, a Local Authority search might reveal that a new motorway is planned to run near your new home, or an environmental search might uncover a high risk of flooding. Without this information, you may find yourself buying a property that becomes difficult to sell later or requires expensive repairs.

2. Ensuring Mortgage Approval

If you are purchasing a property with a mortgage, it’s almost certain that your lender will require you to conduct specific searches. Lenders want to ensure that the property they are securing with a mortgage is free from major legal or environmental issues that could affect its market value or desirability. Without conducting these searches, a lender could refuse to proceed with your mortgage, jeopardising the purchase.

Mortgage lenders usually insist on three core searches: a Local Authority search, a Water and Drainage search, and an Environmental search. If these searches raise any red flags, the lender may impose additional conditions or even decline your mortgage application altogether.

3. Uncovering Hidden Risks

Even if you are a cash buyer, carrying out property searches is strongly recommended. Cash buyers are not legally required to conduct searches, but the risks of skipping this step can be high.

Property searches can uncover issues that may not be immediately visible, such as legal disputes over the property’s boundaries, contamination from previous industrial use, or the existence of restrictive covenants that limit what you can do with the property.

Without conducting thorough searches, you might find yourself facing unexpected costs or legal issues after the purchase has been completed.

For example, you could discover that your new property is affected by a chancel repair liability, which could obligate you to contribute towards the upkeep of a local church, a costly and often unexpected burden for homeowners.

Key Types of Conveyancing Searches

There are several different types of conveyancing searches that your solicitor or conveyancer may recommend, depending on the location and nature of the property. These searches are generally split into two categories: mandatory searches, which are required by most mortgage lenders, and optional searches, which are recommended based on specific circumstances.

1. Local Authority Search

One of the most important and commonly requested conveyancing searches is the Local Authority search. This search gathers information from the local council about the property and its surrounding area. It provides critical details about:

• Planning applications and building regulations: The search will reveal any planning permissions granted for the property or nearby properties, as well as any building regulations that may apply. This is particularly important if you are planning to extend or renovate the property, as you need to ensure that any work complies with the law.

• Conservation areas and listed buildings: If the property is in a conservation area or is a listed building, there may be strict rules governing what changes can be made. A Local Authority search will reveal if any such restrictions apply to your property.

• Road adoption: The search will show whether the roads around the property are maintained by the local authority (adopted) or whether they are privately owned. If the road is not adopted, you may be responsible for its upkeep, which could be an unexpected cost.

• Proposed developments: This search will identify any nearby developments, such as new roads or railways, that could affect the value or desirability of the property. For example, if a new high-speed rail line is planned to run near the property, this could impact noise levels and accessibility.

• Compulsory purchase orders: These orders allow authorities to purchase land for public use. If a compulsory purchase order has been issued for part of your property, it could have significant implications for your ownership and use of the land.

2. Water and Drainage Search

The Water and Drainage search provides essential information about the property’s water supply and drainage systems. This search will typically answer the following questions:

• Is the property connected to a public water supply?: If the property is not connected to mains water, you will need to explore alternative water sources, such as a private well.

• Is foul water and surface water drainage connected to public sewers?: This will reveal whether the property’s drainage system is connected to the public sewer network, or if it relies on a private drainage system, such as a septic tank. Private drainage systems can be costly to maintain and repair.

• Are there any public sewers within the property’s boundaries?: If a public sewer runs through your property, this could limit your ability to make changes or extensions to the building. You may need permission from the local water authority before carrying out any work near the sewer.

Related:

What is a Notice of Transfer Fee?

What is a Deed of Covenant?

What is the New Build Purchasing Process?

What is Search Indemnity Insurance?

What is a Deed of Surrender?

Is a Deed of Surrender Necessary?

What is a Positive Covenant?

What is a Restrictive Covenant?

3. Environmental Search

The Environmental search assesses the environmental risks associated with the property. These risks can include:

• Flood risk: If the property is in an area prone to flooding, the search will provide a flood risk assessment, highlighting the potential for future flooding. This is particularly important if the property is located near a river, the sea, or on a floodplain.

• Contaminated land: The search checks whether the property is built on or near land that has been contaminated by previous industrial use, such as factories, gas works, or landfills. Contaminated land can be costly to clean up and may pose health risks to residents.

• Radon gas: This search will reveal if the property is located in an area with high levels of radon gas, a naturally occurring radioactive gas that can pose serious health risks over time.

• Ground stability: The search will assess the stability of the ground, identifying risks such as subsidence or sinkholes. This is particularly important in areas with a history of mining or where the soil composition is prone to movement.

Additional Searches to Consider

While the three main searches (Local Authority, Water and Drainage, and Environmental) are essential for most property purchases, there are other searches that may be necessary based on the property’s location or specific circumstances. Some additional searches include:

1. Chancel Repair Liability Search

Chancel Repair Liability is a medieval law that obligates certain properties to contribute towards the repair of the local parish church. While the law has been modernised, it still applies to some properties, particularly in rural areas. A Chancel Repair Liability search will reveal if the property is affected, allowing you to take out insurance to cover any potential liability.

2. Planning Search

A Planning search provides more detailed information about planning applications and decisions in the surrounding area. While the Local Authority search focuses on the property itself, the Planning search looks at the wider neighbourhood, helping you to identify any future developments that could impact your property’s value or enjoyment.

3. Mining Search

If the property is located in an area with a history of mining, such as coal, tin, or brine extraction, a Mining search is essential. This search will assess whether the property is at risk of subsidence or other ground stability issues caused by past or present mining activity. It’s especially important in regions like the North East, Wales, or Cornwall, where mining was historically widespread.

4. Flood Search

If the Environmental search raises concerns about flood risk, a more detailed Flood search may be required. This search will provide a more in-depth analysis of the property’s flood risk, considering factors such as historical flood data, proximity to watercourses, and future climate predictions. Flood risk can significantly impact your ability to obtain insurance for the property.

5. Energy and Infrastructure Search

With the expansion of new infrastructure projects like HS2 and new energy developments such as wind farms, an Energy and Infrastructure search can be invaluable. This search will reveal whether any large-scale infrastructure projects are planned in the vicinity of the property, which could impact its value or desirability.

How much do Conveyancing Searches cost?

The cost of conveyancing searches can vary significantly depending on the location of the property and the number of searches required. As a rough guide, here are the typical costs associated with some of the most common searches:

• Local Authority Search: £150 to £400
• Water and Drainage Search: £60
• Environmental Search: £60
• Flood Search: £24
• Planning Search: £35
• Chancel Repair Liability Insurance: £5 to £30

It’s generally recommended to budget between £350 and £400 to cover the cost of searches. However, if the property requires additional searches, such as a Mining search or Energy and Infrastructure search, the costs may be higher.

What Happens If You Don’t Conduct Property Searches?

While it may be tempting to skip property searches to save time or money, this is a risky approach. Failing to carry out searches can lead to several potential problems:

• Undisclosed issues: Without property searches, you could miss critical information about legal, environmental, or planning issues that could affect the property’s value or your ability to use it as intended.

• Lender refusal: Most mortgage lenders will refuse to offer a mortgage without the completion of specific searches. Skipping searches could result in your mortgage being declined, putting the entire purchase at risk.

• Future liabilities: If a hidden issue comes to light after you have completed the purchase, you will have limited legal recourse. For example, you could find yourself liable for chancel repairs or dealing with contamination issues without any support.

Conclusion

Conveyancing property searches are an essential part of the home-buying process in the UK. They provide critical information that protects you from hidden risks, ensures that you are fully informed, and helps you make a sound investment in your future home.

By conducting thorough searches, you reduce the likelihood of encountering unexpected problems, whether they relate to environmental risks, planning restrictions, or legal liabilities. While property searches do add to the overall cost of purchasing a home, they are a worthwhile investment that ensures peace of mind and legal protection.

Always consult with your conveyancer to determine which searches are appropriate for your specific situation, and be sure to carry them out before the exchange of contracts to protect your interests fully.

With this comprehensive approach, you can proceed with confidence, knowing that your new property is free from hidden surprises that could otherwise spoil your dream of homeownership.