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Refurbishment Buy to Let: Why a correctly completed Schedule of Works is so important

Rich


Richard Lawton, Head of Short Term Lending

Published 20.09.2019

Imagine your customer purchases a property with the intention of letting it out following refurbishment works, only for the valuation to come back much less than they were expecting.

Not only could this have a huge impact on the size of the mortgage they’re able to secure once the works have been completed, it could also affect the lettable value of the property, as well as any future plans they might have about developing their portfolio by taking value in the property and reinvesting it elsewhere.

So how can you maximise the exit valuation of your customer’s property? One of the best ways is to make sure their Schedule of Works is filled out correctly.

As a valuer can only go on the evidence they have in front of them when they carry out their research and when they visit the property, a properly completed schedule can help ensure their valuation is as accurate as possible and reflects the property in its finished condition.

What we’re looking for is a detailed schedule with good quality information; so for example we don’t need to know the make or model of a new boiler but we do need to know that your customer intends to install one. And as well as including a description of the proposed improvements, your schedule should also have a clear breakdown of the timescales and the costs involved. Above all though, be realistic.

To help, we’ve provided a good example of how a Schedule of Works should be filled out.

If you’ve got a question or need a little extra help in completing a Schedule of Works, call our dedicated support team on 0800 116 4385.

 

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