What Are the Key Challenges in High-Value Property Transactions?

Written by Alex Meyer | Residential Conveyancing Team | 14 March 2024

High-value properties represent a unique segment of the property market; the process of buying and selling these properties involves additional requirements to other types of property transactions. This brings its own set of special considerations and steps that, with the right support, can be navigated to ensure a smooth process.

The process of buying and selling high-value properties differs from other property transactions in several ways. The financial stakes are higher, and the properties often come with unique features or historical significance. This can require extensive negotiations, detailed inspections, and complex legal considerations, making them more intricate.

From legal intricacies to financial complexities, buyers must be prepared to address a range of issues that are typically more nuanced than those in standard property transactions. These can include:

Listed Buildings

Due to their historic nature listed buildings tend to fall in the higher value bracket of properties. You can access the Historic England’s list of listed buildings to see whether the property you are looking at is listed. This will confirm which specific features of the property are listed. If you plan on doing works to the listed building you would also need to obtain Listed Building Consent along with any additional planning permissions or building regulations that may apply. If you do not obtain Listed Building Consent you could be fined or even face a criminal prosecution.

In addition to possible prosecution for a criminal offence where there has been an unauthorised alteration to a listed building, the Local Authority can issue an enforcement notice requiring the breach to be rectified. Unlike the similar provisions applicable to the breach of planning controls, there is no time limit for the issue of an enforcement notice in case of listed buildings. The Local Authority can, therefore, issue a notice at any time from the date of the breach.

You can read more about Listed Buildings here.

Rural Property

Higher value properties are more likely to be rural properties and those come with some unique features. This could include a private water supply derived from a boar hole or well, as well as private drainage by way of a septic tank, cesspit or sewerage treatment works. We would recommend that a private drainage survey is carried out to ensure that these systems are compliant with the most recent set of regulations as this could prove costly if they need to be updated to current standards.

Rural properties may also come with private accessways. This would mean that the access to the property may not be maintained by the Local Authority and the maintenance may be shared with neighbouring properties who also use the road. We would also need to check the title to confirm that you have the necessary rights of way granted to use the lane, and what your maintenance responsibilities may be.

Conservation Areas

Higher value properties tend to be located in areas of outstanding natural beauty or within conservation areas. These areas are designated by the Local Authority to preserve the look of a particular area. If you are planning to make any changes to the property there would be extra considerations, as well as the usual planning permission and building regulation control.

Detailed Due Diligence

Thorough due diligence in high-value property transactions is vital to identify issues like restrictive covenants, rights of way, and environmental factors, ensuring all concerns are addressed before the exchange of contracts.

Negotiating Contract Terms

High-value property transactions typically see more extensive negotiations on terms such as price, contingencies, and what's included or excluded in the sale. This process often involves detailed discussions to fine-tune these aspects, ensuring they align with the expectations and requirements of both parties involved.

Environmental and Planning Issues

Environmental and planning considerations for high-value properties tend to be more nuanced due to their scale, historical value, and sustainability requirements. This is done to assess their potential impact, as there is a heightened expectation for these properties to align with advanced energy efficiency and environmental standards.

Both buyers and sellers can successfully navigate these challenges with the right support and advice. Engaging with legal professionals who specialise in high-value property transactions is crucial. They provide not only the necessary legal expertise but also valuable guidance for other considerations, such as market trends and financial considerations.

While there may be additional challenges associated with high value property transactions, the right approach and professional support can make buying or selling a less stressful experience. Understanding these challenges and addressing them correctly is the key to a successful transaction.

Our expert Residential Conveyancing team can answer any questions you may have and support you through the process. You can get in touch with them directly by calling 01752 827069 or clicking here.