Northern Rock: Deadline for Branson et al
Living the dream: Listed building costs surprise
Monday, 04 Feb 2008 13:07
Homebuyers about to take out a mortgage on their dream home are being warned - if it's listed, they will need to fork out for extra insurance.
Listed properties might be charming and romantic, but the fact they require such high maintenance means they are far from desirable for most homebuyers.
Now rural insurer NFU Mutual is alerting owners or potential-owners of these unique properties that specialist insurance is also needed to cover the extra costs of keeping their homes preserved and intact.
NFU is concerned while four in ten people would consider buying a listed property, 37 per cent did not know they needed additional cover.
Yet people are still clearly aware of the work involved in owning a listed property. NFU found 35 per cent of people would not even consider buying a listed property – put off by the hassle of DIY, maintenance and home improvements.
For those still keen to live the romantic dream, NFU Mutual has issued advice on insuring a listed home.
Laura Wood at NFU Mutual urged anyone buying a listed property not to rely on printed tables when trying to calculate the rebuild value of their property.
"No two listed properties are the same," she said, "this uniqueness being the reason for their listing."
"It is a common misunderstanding that the rebuilding cost of a listed property has any correlation to its market value.
"On occasions the rebuild cost can in fact far exceed its market value. Per square meter, rebuild costs can sometimes be four-times greater than an average modern post-war property," she added.
The top tips to listed property owners were to seek specialist advice and regularly review insurance arrangements.