Help with rebuild costs

[JoceAndChris]

Hi

We're very under insured on the London property. We need to find out the rebuild costs for two large Victorian terraced houses in North London, each containing 6 single flats, each flat with a resale value of approx £400k. I should point out we just own one flat but the Management Company is run by all of us and it's time to sort this out! Any ideas?

 

[Flyfisher]

In my limited experience, market values are not an accurate guide for rebuilding costs for insurance purposes. Our previous Hertfordshire house (not listed) was insured for under half the market value for rebuilding insurance but our current (listed) house is insured for about twice the market value. Both rebuild valuations were provided by the firms we used for surveys. I also found some guidelines on the web somewhere that gave average rebuilding costs per m2 for various construction types, which were in basic agreement with our quoted figures. Remember to include costs of demolition and site clearance.

I would guess that London property values would be an even greater multiple of their rebuild costs - but it is just a guess. These sorts of things are difficult enough for a single property but for a management company responsible for a 'multiple unit' building I think the best approach is to pay for a professional valuation. This should also provide additional insurance against the risk of being under insured should the worst case happen and any claims of negligence against the management company.

 

[LadyArowana]

In worst case scenario situation of building being completely destroyed would local planning rules require it to be re-built in exactly the same style? I tend to have a rather cynical view of ins companies and for them things are a simple matter of business. In the event of a total loss they might decide to give owners some money and sell site to developer who then builds an "Edwardianesque" apartment building, with units priced beyond what people have been given by way of a payout.

 

[JoceAndChris]

I agree with you LadyA! It's a Conservation Area but I can't imagine a faithful copy being made.

Thanks FF -very helpful. I think a professional valuation is the way to go. We'll get that organised.

And everything that's happened over the last couple of years is pointing to a massive increase needed in the flat owners' payments into the Management Company's kitty. We've always just payed £50 a month per flat, this is so cheap for London. It's covered only very basic redecoration costs and essential repairs to the roof, windows, bin shelters and drains. Some of the residents have protested at suggestions we increase contributions, but even though we're coming into the season of goodwill and all that, I'd like to see those scrounging workshy dole-ites priced out. They're no good for the building at all.

 

[plasticpigeon]

£50/month is incredibly cheap for anywhere. Even modern blocks in my neck of the woods have service charges of up to £100/month. Irrespective of who's living there, you should definitely put the charge up to £100 at least.

 

[wobs]

Rebuild cost calculator:
http://abi.bcis.co.uk/

As said by others, it is a very approximate figure, but a good starting point.

 

[JoceAndChris]

I couldn't get that to work out unfortunately, the options didn't cover the type of building it is.

Agree £100 is more sensible. We've always been a non profit making company and have always shopped around for the cheapest quotes for works, patched up and done cheap fixes, but I think we're really in a very precarious place right now. New roofs could be needed and they could very easily make a mess of 50 k. Or more. Quite scary really.