May 2022 | Squarepoint

Home insulation – what are the options?

Posted on May 25, 2022 by Squarepoint

It is no secret that Britain has some of the oldest and least energy efficient housing stock in Europe. According to government estimates, two thirds of the UK’s 29 million homes have EPC ratings of D or below. Nearly a quarter of our emissions come from heating poorly insulated buildings, so improving energy efficiency in the home is critical if we, as a country, are to reduce our energy consumption and meet our climate goals.

The good news is that there are many options available to retrofit existing homes with insulation. For property owners, well insulated properties save energy, improve comfort and cut energy bills.

Squarepoint Surveyors are a team of experienced building surveyors in London with a wealth of surveying expertise and property industry knowledge to put at your disposal to protect and maintain your property asset. Our extensive service menu includes building surveys, refurbishment & restoration advice, project management, contract management and much more besides.

Which areas should you insulate?

Insulation should be added wherever heat escapes from the property. These are the main areas of heat loss in the home:

Walls: Around 1/3 of heat loss from an uninsulated house occurs through the walls. Depending on the type of property, this can be addressed with cavity wall insulation or solid wall insulation.
Roofs: Around ¼ of heat loss from an uninsulated house occurs through the roof. Installing loft insulation or topping up existing insulation to the maximum level is effective at preventing heat loss.

Cavity wall insulation

Homes built from around 1920s onwards are likely to have cavity walls – exterior walls with two layers and a narrow gap in between. If you are unsure, check by looking at the bricks from outside; if they are laid lengthways and in an even pattern, it’s most likely to be a cavity wall. Homes built from the 1990s onwards probably already have some level of cavity wall insulation in place.

Official figures show that 70% of homes with cavity walls have cavity wall insulation in place, which leaves 30% of homes exposed. The heat loss arising from cavity walls may be less than with solid walls, but it can still be improved with insulation. Cavity wall insulation works by injecting foam or mineral wool into the gap, which traps heat inside the home to keep it warmer in the winter and cooler in the summer.

Solid wall insulation

Solid wall constructions lose considerably more heat than cavity wall constructions. However, over 90% of houses with solid walls have no insulation at all. The likely reason for this is that solid walls are more difficult and expensive to insulate, though the resulting saving in terms of lower energy bills is much greater.

There are two ways that solid walls can be insulated: from inside or from outside. Internal wall insulation consists of fitting insulation boards to the inside of the home to prevent heat loss. It may be the cheaper of the two options but it’s a messy and disruptive process that will also slightly reduce the internal floor area. External insulation involves fitting insulation boards to the outside of the house. It may be more effective but also more expensive. What’s more, external insulation will change the external appearance of the property, making it unsuitable for Conservation Area properties or listed buildings.

Loft insulation

Around two thirds of homes with a loft already have loft insulation in place but do check its thickness and condition. Where necessary, upgrade to the government recommended depth of 250mm-270mm. Some new properties are increasing their level of loft insulation to 300mm. You can either insulate the floor of your loft (cold loft) or immediately under the roof (warm loft), the latter being particularly useful if the loft space has been converted to habitable space. Flat roofs are usually best insulated from above.

Loft insulation is usually carried out with rolls of mineral wool or foil-backed felt, though there are many materials that can be used. In some cases, spray foam insulation may be a cost-effective solution but beware of potential problems that we discussed in a recent blog post.

Draught proofing

Finally, a surprising amount of heat loss occurs through poorly sealed windows, doors and chimneys. Luckily, draught proofing is one of the cheapest and easiest ways to address this and there are many DIY options available such as shop bought foam strips and letterbox brushes, as well as professional draught proofing services.

Contact us

If you have any questions about how to maximise the energy efficiency of your property or the best way to insulate your home, or would like to discuss your property surveying needs with one of our team, please feel free to contact Squarepoint Surveyors.

Party Wall Advice for Adjoining Owners: What are your property rights?

Posted on May 17, 2022 by Squarepoint

The Party Wall etc. Act 1996 states that, should a Building Owner wish to carry out any modifications to their home that affects a shared wall, they need to follow a specific procedure to protect their interests and those of the affected Adjoining Owner.

An Adjoining Owner is any owner of land, buildings, storeys or rooms adjoining those of the Building Owner. The adjoining property may have a freehold owner, a leasehold owner and/or a long-term tenant or occupier, any of whom may qualify as an ‘Adjoining Owner’ under the Act. There may be more than one adjoining property or owner.

In a best-case scenario, the Building Owner has taken the time to discuss their plans with their neighbours well in advance of the work being started. However, it’s not uncommon for Adjoining Owners to only become aware of the project when they receive a Party Wall Notice through the letterbox. In either case, it’s important that Adjoining Owners understand their options and how their response will affect the proceedings.

What rights do Adjoining Owners have under the Party Wall Act?

Adjoining Owners should be aware that the main purpose of the Party Wall Act is to facilitate development. In return for the Building Owner being able to carry out the proposed works, he must comply with the provisions of the Act, including notifying all Adjoining Owners in advance of the work starting. He also has a legal duty to remedy any damage caused by the works. While Adjoining Owner rights do not extend to stopping the building owner from carrying out the proposed works according to the Act, they are able to influence how and at what times the work is done.

Specifically, Adjoining Owner property rights include:

Appointing a surveyor to facilitate dispute resolution
Requiring necessary security and other measures to be taken to protect adjoining property from foreseeable damage
Not having to endure the unnecessary inconvenience
Being compensated for damage or loss to property caused by the works

How can Adjoining Owners object to the proposed works?

It is often the case that Adjoining Owners only become aware of a neighbour’s proposed work when they are served with a Party Wall Notice. The Adjoining Owner can choose to consent or dissent the Notice, and if NO response is made within 14 days, the parties are deemed to be in dispute under the Act.

Both parties must now appoint a surveyor in order to agree to a Party Wall Award. This can be one ‘agreed surveyor’, though often Adjoining Owners will prefer to appoint their own surveyor. If no agreement is reached (which is rare), the appointed surveyors appoint a third surveyor who will settle any outstanding issues and have the final say.

The Party Wall Award is a legally binding document on all parties, which sets out the details of the proposed works and all safeguards agreed to ensure that the works are carried out with the minimum of risk and inconvenience to Adjoining Owners, as per the Act.

Option 1 – Adjoining Owner who has received a notice

If you are an Adjoining Owner that has received a Party Wall Notice, the first option you have is to provide full, written consent for the proposed works. This option is seldom recommended (if ever), as it leaves your home vulnerable to related damage that the Building Owner may not be considered responsible for.

Dissenting in order to have a Party Wall Award drawn up and have the current condition of your property documented is prudent, even if you have no further concerns about the work.

It is important to note that if you do not provide a formal response within 14 days, you are deemed to have dissented and therefore be in dispute.

Option 2 – Should you share the same surveyor as your neighbour

If you should choose to dissent, the next step is to decide whether you are comfortable sharing the same surveyor as your neighbour. This is an accepted and common practice, and the appointed surveyor is obliged to act impartially – you should not need to worry about being at a disadvantage by agreeing to a jointly-appointed surveyor.

However, it is important to select a surveyor that has experience in Party Wall matters. This should include Schedules of Condition and Party Wall Awards that address any potential issues with the project, such as security, noise, vibration, dust and temporary access.

Option 3 – Provide and Instruct Your Own Separate Surveyor

If you are not happy with the Building Owner’s choice of surveyor, you can provide dissent and instruct your own, separate surveyor. In normal circumstances, the Building Owner is responsible for all reasonable surveyor fees.

The two surveyors will then negotiate the terms of the Party Wall Award so that they are fair and reasonable for both parties. In this scenario, the two surveyors will jointly appoint a third surveyor, who will make a final decision in any circumstances where they cannot agree. However, this situation is uncommon.

At Squarepoint Chartered Surveyors, we can have extensive experience with Party Walls and will act on behalf of either party (or as a jointly-appointed surveyor) for renovations, construction and demolition, including basement extensions and loft conversions.

Squarepoint Chartered Surveyors have experienced Party Wall Surveyors in London with 20+ years in the business. For valuable professional advice on any Party Wall-related matter, please contact us at 0207 651 0000 or email us your enquiry.

What can happen if you fail to serve a Party Wall Notice?

Posted on May 13, 2022 by Squarepoint

If you are planning a building project that is going to affect a party wall with adjacent property – typically a loft conversion, building extension or basement extension –you are obliged to serve Notice to the relevant neighbour under the Party Wall Act 1996.

Squarepoint Surveyors have experienced Party Wall Surveyors in London and can help you prepare the necessary Party Wall Notices and Party Wall Awards. We will ensure that all building works are completed properly, in full compliance with the law and with the minimum of inconvenience and disruption to yourselves and your adjoining neighbours.

Unfortunately, some property owners fail to recognise the importance of this crucial piece of legislation which, after all, was put into place to protect the interests of all affected building owners. Whether you get on well with your neighbours and can’t foresee any problems, or you’re worried about aggravating an already brittle relationship, or you are simply trying to cut costs, be warned that not serving Notice carries real risks.

Serving Notice under the Party Wall Act protects you against any exaggerated or fraudulent claims from your neighbour. Your Party Wall Surveyor will draw up a Schedule of Condition to document the state of repair of the adjoining owner’s property before building works begin. This gives an accurate picture of any damages that may have been caused by the building work you have undertaken can be assessed.

Schedule of Condition

Protects you against exaggerated or fraudulent claims

Without a baseline Schedule of Condition, you are leaving yourself wide open to opportunistic claims by your neighbour without any evidence that the damage was indeed caused by your building works. In other words, it is their word against yours and, under common law, you are obliged to put right any damage caused.

If you don’t serve Notice, you are immediately on the back foot when it comes to your neighbour’s rights. Without a Party Wall Notice, he can question all sorts of aspects of your building project including the quality of the tradesmen you’ve chosen, the location of the skip on the road, noise nuisance from drilling etc, dust and mess from demolition works and much more.

Following proper procedure offers you protection under the Party Wall Act, meaning your neighbour has less power to interfere with your plans causing extra delay and expense.

Not serving a Party Wall Notice has the potential to sour relations with your neighbour, even if you have been getting on famously. The adjoining owners may well be your key holders, delivery takers or cat sitters. Assuming that you value good neighbourly relations long term, you should make every effort to treat them with the respect and courtesy they deserve.

Carrying out building works that affect a party wall or structure between you without having served Notice first can easily cause worry and discomfort. Your neighbour may well feel short-changed, having not been kept fully informed of your home improvement plans nor been given a formal opportunity to have their concerns taken into account.

Serving Party Wall Notice to adjoining building owners prior to commencing building works is a legal obligation. Not complying means that you run the risk of being taken to court by your neighbours. They can appoint legal representatives and take out an injunction to stop your project.

This could lead to serious delays in your building project as well as a potential claim from your building contractor for loss of income incurred as a result of stoppage. You are also liable for your neighbour’s legal fees. The financial implications could be substantial.

A Party Wall Agreement may well seem like just another expense you could do without, but we hope the above shows a clear need to have a formal agreement in place. Serving Notice can help you avoid unnecessary disputes with your neighbours, keep costs down and ensure a smooth project progression.

At Squarepoint Surveyors, we will steer you through party wall matters with professionalism and integrity, in full compliance with all the legal requirements. We work with you to ensure that your interests are fully protected, aiming to maintain or even improve neighbourly relations before, during and after your building works are complete.

Under the leadership of Scott Buchanan MRICS RMaPS MFPWS, our team is passionate about understanding buildings and taking a client-focused approach to delivering the best possible advice. Contact our team to discuss your party wall needs.

Key considerations before you buy a leasehold property

Posted on May 11, 2022 by Squarepoint

Leasehold is a popular form of ownership for homebuyers and investors alike. According to official statistics, there are around 4.6 million leasehold dwellings in England, equating to nearly one fifth of the housing stock. 68% of leasehold properties are apartments and maisonettes and, perhaps surprisingly, 32% are houses. London has the highest proportion of leasehold homes (34%).

Leasehold ownership may have had a bad press in recent years on account of the ground rent scandal, but the government has taken positive action. From 30^th June 2022, ground rent charges will be banned on new residential leases in England and Wales. It’s the first of a series of long-awaited reforms to the leasehold system.

If you are considering the purchase of a leasehold property in London, it’s important to understand exactly what this entails, so you can make an informed financial decision. At Squarepoint Chartered Surveyors, our experienced team brings together a wealth of surveying expertise and property industry knowledge for the benefit of residential and commercial clients in the capital. We can help with Building Surveys, Refurbishment & Restoration Advice, Licence to Alter, and all Party Wall Surveyor matters, providing professional advice and guidance on a host of building-related issues. Here are our recommendations on the key questions you should consider when buying a leasehold property.

What is the difference between leasehold and freehold?

A freehold title confers ownership of the building and the ground it is built on. A leasehold title, by comparison, confers the right to occupy the property for the period determined by the lease. A leaseholder has exclusive possession of the property for a fixed term, but they do not own the building. When the fixed term comes to and end, ownership reverts back to the leaseholder. In practice, this rarely happens since leaseholders have a statutory right to extend their lease.

What is the remaining duration of the lease?

By definition, a leasehold property is a depreciating asset, meaning the asking price should reflect the remaining years left to run on the lease. If the remaining term fall to around 80 years or less, it will be difficult to obtain a mortgage on the property, while renewing a short lease can be disproportionately expensive. The first key pieces of information any prospective purchaser should obtain are the number of years left to run, whether a lease extension is necessary and how much to budget for this.

How much is the ground rent?

Leasehold properties are subject to an annual ground rent payment to the freeholder. This could be a nominal fixed amount or increase at periodic intervals. Unreasonably high ground rents and onerous escalation clauses have been at the heart of the recent scandal – so do double check. If the ground rent rises to 0.2% or more of the market value of the property, be very aware that this is likely to diminish the property’s saleability and mortgageability.

What are the other terms of the lease?

The lease is the formal document that specifies the terms under which leasehold ownership is conferred. It is crucial to fully understand what these are, and legal advice is highly recommended. Find out the rights and obligations granted under the lease, especially those that could affect how you wish to use the property such as restrictions on operating a business, keeping pets or subletting the apartment. Verify that the lease has a maintenance covenant obliging the freeholder to maintain the building and common areas.

What other important costs should be considered?

The main costs associated with leasehold ownership are ground rent (see above), service charges to contribute to the upkeep of the building and common areas, and administrative fees for freeholder consents and approvals as necessary. There is also the potential cost of extending the lease. Service charges can be a particular minefield since these are set by the freeholder. It is therefore essential to request detailed information regarding current and past service charges to see the level of expenditure and understand the frequency and extent to which they may fluctuate.

What is the current condition of the property?

We recommend an in-depth property inspection carried out by an independent surveyor as the best way to gain important insights into the condition and state of repair of the leasehold property. Squarepoint Surveyors offer a choice of building surveys that can be customised to your needs. Also find out about planned future expenditure for the building as a whole and whether a sinking fund exists to cover future works. If there isn’t one and the building is in a state of disrepair, this should be a cause for concern.

Are you planning to let the property?

If you are making a buy-to-let investment, particular consideration should be given to any sub-letting clauses in the lease. Is it permitted and are there any restrictions (e.g., no holiday lets, single families only, no pets) that could limit your rental market opportunities? When calculating the likely rental yield, ensure that all the costs mentioned above are taken into account. Importantly, gross leasehold yields should be discounted by about 20% before they can be compared to freehold yields.

Get in touch

There is no reason why leasehold ownership can’t work perfectly well for both owner occupiers a well as those considering a property investment in London. The important thing is to carry out careful due diligence and a thorough evaluation of both the condition of the property as well as the lease terms governing its ownership. Deploying caution and discernment at the outset are the best way to ensuring that your purchase and ownership will be successful. For expert advice with your next leasehold property purchase, please contact the Squarepoint Surveyors team.