A Local Authority Search; Do I need One, What’s the cost & How Long Do They Take In Birmingham?
August 8th, 2021
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"content_area": "A Local Authority Search is a mandatory requirement if you’re buying a property using a Mortgage and is a vital part of the process. However, if you’re buying with cash funds and no mortgage borrowing is involved, then it is up to you whether one is submitted or not. Some solicitors will insist or at least strongly recommend you have one.\r\n\r\nLocal Authority Searches can take some time as they are a heavily detailed search, but timescales depend on where in the country you are. At the time of writing, Birmingham has a response time of approximately 6 working days.\r\n\r\nSo What Is A Local Authority Search?\r\n\r\nLocal Authority Searches are details and information about the local area and land where you’re planning to buy a property.\r\n\r\nIt includes things such as:\r\n
- \r\n \t
- Is the property a listed building or not\r\n \t
- Is the property located within a conservation area\r\n \t
- What development plans are there, if any, in the local\/immediate area\r\n \t
- Are there any planning consents for nearby property i.e. have your neighbours submitted plans to extend or a property has requested a change of use i.e. a house turned into flats.\r\n\r\nWhat Does a Local Authority Search Consist of?\r\n\r\nThere are two parts to a Local Authority Search;\r\n\r\nCON29: is a set of questions about the property and its surrounding area. This includes essential information such as planning and building regulation applications, whether any enforcement action has been taken by the council and what road or railway schemes are in place, if any at all, that could affect the property’s value.\r\n\r\nLLC1: looks at local land charges which apply to each owner of the property. It also includes things like if there are any tree preservation and smoke control orders and if the property is in a conservation area or not.\r\n\r\nAre Local Authority Searches Vital?\r\n\r\nIf you’re buying a property in Birmingham with a mortgage, a condition of the lender will be that searches are carried out before borrowing you any money for the purchase of a property. This is to protect themselves against any issue which may arise, including sudden price drops.\r\n\r\nSearches help to protect you the buyer as well by the way, giving you peace of mind that the biggest asset you’ll ever likely buy, is going to hold or increase in value and of course, is sellable in the future should the need arise. Imagine, you buy a property to suddenly find an abattoir was being built next door, motorway or railway was being built at the bottom of your garden; nightmare!! It could be something standard like a neighbouring property having a large extension or loft conversion done. At least you know at some point, there may be some upheaval during your ownership. On a positive, because it’s not all negative, knowing what people are doing could help with your future plans for the home, like erecting your own extension.\r\n\r\n
\r\n\r\nHow Long Can Local Authority Searches Take?\r\n\r\nLocal Authority Searches can take around 2 to 3 weeks but varies on the local council. In some cases, I’ve known them take up to 6 weeks, or as little as a few days, but 2 to 3 weeks is about the average.\r\n\r\nWhen they do come back, your solicitors may advise you to carry out further searches and enquiries. An example of this may be HS2, like where the new train tracks will be placed or station built. It could be that a house locally is being converted into flats in which case, an investigation could be made as to what type of accommodation it will be; for social housing or a private landlord renting them out.\r\n\r\nSo What Is The Cost For A Local Authority Search?\r\n\r\nThey can differ as every council set their own fees, but typically they cost between £50 and £250. Additional searches will cost extra to carry out.\r\n\r\nThere are other searches you can have carried out, like the Environmental Search and Drainage Search. Many solicitors will include these two in with a ‘search pack’ so all three are submitted at once and the cost can range from circa £250 to £450. It’s advised to ask your solicitor of a full breakdown and also explanation as to what and why searches are needed.\r\n\r\nLocal Authority Search Indemnity Insurance; what is it?\r\n\r\nIn the event your searches are delayed, which could hold up your purchase, your solicitor may suggest taking out an indemnity insurance policy. This covers the risk of something negatively affecting the value of the property, which would have been flagged if full searches had been carried out.\r\n\r\nFor example, if the council issued a compulsory purchase order on your property to demolish it and make way for a new public facility, you may not receive the full market value for your property. This is where the insurance policy would kick in and cover the difference and give you some peace of mind.\r\n\r\nHowever, you need to be aware that not all Mortgage lenders will accept an indemnity insurance policy in the absence of full searches. It’s always recommended that you check with your solicitor and ask for their advice on the pros and cons of any Indemnity Policy.\r\n\r\nIf you’re looking to buy or sell a home in Birmingham and need professional, experienced, transparent advice; get in touch with me at dean.coleman@exp.uk.com or 07581875215. You’ll be looked after from start to finish.\r\n\r\n “,
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