Our Due Diligence Process
We use our best endeavors to ensure we appraise a property so that it meets with the expectations of our investors. We aim to try to provide you with accurate and concise information so that you can then assess the viability of any proposition you are presented with. We strongly advise that you carry out your own personal check and as such make an informed and educated decision. Please look at the next section entitled [Due Diligence we recommend you should carry out].1. Preliminary Personal Searches
We inspect every property we value, and as such look to confirm the identity of the vendor by inspecting documents such as photo identity documents and evidence of their address. We then cross check this with land registry documents. The information is then passed on to nominated solicitors to further verify and confirm the identity of the vendors [sellers].We ensure all registered proprietors confirm and agree to our contracts – they must sign them providing us with the sole selling rights of a property, provided we are satisfied in taking the instructions to market their property. Here are some quick checks;
- Land registry title download from our own internal systems
- Identification of all proprietors, to include photographic and address identity documents as required by The Money Laundering Regulations 2007.
- Bankruptcy search of individual proprietors
- Assessment and documentation proof on any charges and or restrictions secured on the property to confirm that there is sufficient equity for the seller to sell
- Company information and legal standing if owned by a company
- Articles of association and amendments
- Identification of all shareholders, to include photographic and address identity documents as required by The Money Laundering Regulations 2007.
- Special shareholder arrangements
- Shareholder assets and liabilities
2. Pictures and Personal Searches
We want to provide an accurate description of the property and take relevant pictures. All such information is then passed to the Seller to confirm, ensuring that all information in respect of the property is correct. We want to make sure we at all times provide accurate information and within the confinements of the The Property Misdescriptions Act 1991 and The Property Misdescriptions (Specified Matters) Order 1992.
3. We Evaluate House Prices
- We consider House Prices, completion, demand of property value together with rental demand. As identified in the House Prices Section of the Guide.
- We look at Local Housing Authority Rental figures and also look at other rental properties on the market and formulate a rental analysis assessment and feasibility.
4. Feasibility
We carry out an exhaustive appraisal on all properties. We appraise all investment properties on a diligent basis, as though we ourselves were looking to acquire them as property investment professionals. The study includes:
- Location analysis
- Pricing analysis versus local comparable
- End user finance availability
- Local market surplus / shortages (residential / commercial)
- Proposed resale exit strategy
- Market demand drivers (universities, hospitals, schools, communications)
- Resale feasibility
- Dilapidation Assessment
- Planning potential
- Development Potential
- Leases and Service Charges
- Vacant or Occupied, arrears deposit assessments
- Fixtures and Fittings included
- Energy Proficiency Certificate to assess the running costs of the property
- Local market trends and analysis
- Demand for rental
5. SiteVisit
We always visit all our properties before we look to bring them to market. Unless the property has satisfied our criteria, we will not look to bring it on. We refuse far more properties then we bring on – our selection process is thorough.
