This article explores the features, benefits, and application process of bridging loans with Octopus Real Estate, helping you understand how their products can support your property investment goals.
Why Choose Octopus Real Estate for Bridging Loans?
Octopus Real Estate offers property investors the following advantages:
- Speed: Quick approvals and fast access to funds.
- Flexibility: Tailored loan terms to suit various property strategies.
- Expertise: A dedicated team experienced in complex property transactions.
Their bridging loans are ideal for:
- Auction purchases with tight deadlines.
- Property refurbishments to increase rental yields or resale value.
- Bridging the gap between property sales and acquisitions.
Key Features of Octopus Bridging Loans
- Auction purchases with tight deadlines.
- Property refurbishments to increase rental yields or resale value.
- Bridging the gap between property sales and acquisitions.
What Happens After a Bad House Survey?
Step 1: Understanding Your Survey Results
Receiving a survey report with unexpected issues can be concerning, but it doesn’t necessarily mean the deal is off. Many homes, especially older ones, will have some defects. The key is to understand the severity of the problems and their potential impact on the property’s value and safety.
The surveyor will provide a breakdown of the findings, and for in-depth reports, they may offer professional advice on the next steps. It’s always a good idea to discuss the report directly with the surveyor to clarify any concerns
Step 2: Estimating Repair Costs
Once you have a clear understanding of the issues, the next step is to determine how much repairs will cost. To do this:
- Get independent quotes from at least two contractors.
- Consult specialists (e.g., a roofing expert for roof problems, a damp specialist for moisture issues).
- Prioritize urgent repairs versus those that can wait.
If repairs are expensive, it may be worth negotiating with the seller to cover costs or adjust the asking price.
Step 3: Should You Still Buy the Property?
If the survey uncovers major concerns, you have three options:
- Proceed with the purchase – If the repairs are minor and manageable.
- Negotiate with the seller – Request repairs or a reduction in price.
- Withdraw from the purchase – If the property poses too many risks or is too costly to fix.
Your mortgage lender may also have concerns if significant issues are found. Some lenders may require repairs to be completed before releasing funds, so it’s crucial to check how this affects your mortgage approval.
Step 4: Negotiating with the Seller
If repairs are needed, buyers can take one of the following approaches:
- Request the seller to fix the problems – They may agree to carry out repairs before the exchange.
- Negotiate a price reduction – If the seller isn’t willing to fix issues, they might lower the asking price.
- Walk away from the deal – If the costs or risks outweigh the benefits, you can withdraw.
Estate agents often mediate these discussions, so it’s essential to communicate clearly and back up your requests with evidence from the survey report and repair quotes.
What Happens After a Clear House Survey?
If your survey report doesn’t highlight any major issues, or if you’re satisfied with the findings, you’re one step closer to completing your home purchase. Here’s what happens next:
Scenario: A property investor wins a property at auction and needs £350,000 to complete the purchase within 28 days.
Solution: Catalyst provides quick approval and funding, ensuring the investor meets the deadline.
Conveyancing Process
Your solicitor or conveyancer will continue carrying out legal checks on the property. These checks ensure:
- The property is correctly registered and has no legal disputes.
- There are no environmental concerns, such as contamination or flood risks.
- Water, drainage, and access rights are all in place.
Mortgage Agreement Checks
Contracts and Deposit Payment
Once all checks are complete, you’ll be ready to exchange contracts with the seller. To do this:
- Pay your deposit (usually 5-10% of the purchase price).
- Sign the contract, making the agreement legally binding.
- Agree on a completion date when you’ll officially take ownership.
How to Arrange a Survey When Buying a House?
Booking a survey is a straightforward but essential step when purchasing a property. Here’s how to do it:
- Choose the right type of survey – Consider the property’s age and condition to determine whether a Condition Report, HomeBuyer Report, or full Building Survey is necessary.
- Hire a qualified surveyor – Look for an RICS-accredited professional to conduct the survey.
- Book the survey early – Surveys can take a few weeks to schedule, so arrange one as soon as your offer is accepted.
- Review the report carefully – Once received, go through the findings and consult your surveyor for clarification if needed.
Key Takeaways
A house survey is a crucial step in the buying process, helping you identify potential issues, negotiate repairs, and make an informed decision. Whether your survey reveals no concerns or uncovers major repairs, knowing what happens next ensures a smooth path to completion.
If you’re planning to buy a property and need guidance on financing options—especially for auction purchases—Auction Finance provides expert solutions to help you move forward confidently.
FAQs
Ans: A house survey is conducted by a qualified surveyor, usually accredited by the Royal Institution of Chartered Surveyors (RICS) or the Residential Property Surveyors Association (RPSA). You can arrange a survey through your mortgage lender, estate agent, or by hiring an independent surveyor.
Ans: To arrange a survey:
- Choose the right type of survey (Condition Report, HomeBuyer Report, or Building Survey).
- Find an RICS or RPSA-certified surveyor.
- Get a quote and confirm the surveyor’s availability.
- Book the survey and arrange access to the property via the estate agent.
Ans: The time needed for a house survey depends on its type:
- Condition Report – A couple of hours
- HomeBuyer Report – 90 minutes to 4 hours
- Building Survey – Around 8 hours
The survey report is usually delivered within 3-8 working days, depending on the survey type.
Ans: If your house survey highlights issues, you should:
- Understand the severity of the problems.
- Get repair estimates from independent contractors.
- Negotiate with the seller for repairs or a price reduction.
Consider whether the issues are deal-breakers or manageable with the right fixes.
Ans: Yes, if significant issues are found, you can use the survey report to negotiate a lower price or request the seller to fix the issues before completing the purchase. The success of negotiations depends on the seller’s willingness and market conditions.
Ans: Although newly built homes come with warranties (such as NHBC or LABC), it’s still advisable to get a snagging survey to identify defects that the builder should fix before you move in.
Ans: A mortgage valuation survey is different from a home survey. It is conducted for the lender’s benefit to confirm the property’s value. If the valuation is lower than your offer, you may need to renegotiate the price or increase your deposit to cover the difference.
