How to use this checklist
Work through every section calmly. Tick each item only when you've actually checked it — not when you assume it's fine. Anything you can't confirm goes on the Red Flags list at the bottom. The aim isn't to find reasons to walk away — it's to make sure you walk in with your eyes open.
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A. LEGAL
▢ Title register and title plan obtained from HM Land Registry ▢ Tenure confirmed (freehold / leasehold) ▢ If leasehold: years remaining, ground rent, service charge, any forfeiture clauses ▢ Restrictive covenants reviewed ▢ Easements and rights of way checked ▢ Boundary lines match the title plan and the ground ▢ No unregistered land in or around the plot ▢ Vendor's solicitor instructed and protocol forms requested (TA6, TA10, TA13) ▢ Searches commissioned (local authority, drainage, environmental, chancel) ▢ Solicitor briefed on intended use (HMO, SA, R2R, etc.)
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B. FINANCE
▢ Mortgage in principle confirmed with broker for the chosen strategy ▢ Lender criteria checked against the actual property and your circumstances ▢ Stress test at +2% interest rate ▢ Deposit funds available and provenance ready to evidence ▢ Stamp duty calculated (including surcharge if relevant) ▢ Survey type chosen (Level 2 / Level 3 / specialist) ▢ Insurance quoted for the intended use, not the current use ▢ Contingency reserve in place (10–20% of refurb budget) ▢ Cash flow modelled for first 12 months at realistic, not optimistic, rent ▢ Exit valuation supported by at least three comparable sales
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C. PLANNING
▢ Current planning use class confirmed (C3, C4, sui generis, etc.) ▢ Article 4 direction status checked for the address ▢ Permitted Development Rights available for your scheme? ▢ Planning history reviewed (refusals, conditions, breach notices) ▢ Lawful Development Certificate considered where relevant ▢ Listed status or conservation area checked ▢ If conversion: pre-application advice from local planners obtained ▢ Building Regs route understood (full plans vs building notice) ▢ CIL / Section 106 implications considered
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D. LOCAL KNOWLEDGE
▢ Walked the street at three different times (morning, after school, weekend evening) ▢ Spoken to at least two local agents about real rental demand ▢ Asked locally about the seller's reason for selling ▢ Checked transport links, schools, hospitals, employers ▢ Reviewed local crime data ▢ Identified saturation in the area for your strategy (HMO concentration, SA listings) ▢ Considered upcoming regeneration or infrastructure changes ▢ Asked the council about any large planning applications nearby
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E. COMPLIANCE
▢ Selective licensing / additional licensing / mandatory HMO licensing checked at local authority ▢ Fire safety scope identified (fire doors, alarms, escape routes) ▢ EPC rated E or above (or budgeted to achieve it) ▢ Gas Safety, EICR, PAT compliance lined up ▢ Landlord registration scheme (if applicable in the local authority) ▢ Right to Rent process understood ▢ Deposit protection scheme chosen ▢ Tenant Fees Act implications reviewed ▢ GDPR/data handling for tenant records
Supported Living notes (if relevant):
▢ Care provider track record, CQC rating and length of contract reviewed ▢ Lease structure understood (FRI vs IRI, who covers what) ▢ Property suitable for the cohort (layout, adaptations, fire strategy) ▢ Local authority commissioning intentions verified — not just provider promises ▢ Exit if the provider hands back the lease
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F. REFURBISHMENT
▢ Scope of works written down, room by room ▢ At least two quotes from trusted contractors ▢ Specification matches strategy (HMO grade vs single-let grade) ▢ Lead times for materials checked ▢ Project timeline with milestones agreed in writing ▢ Payment schedule tied to milestones, not dates ▢ Building control involvement where required ▢ Asbestos / damp / structural surveys where needed ▢ Holding costs during refurb modelled (mortgage, utilities, insurance) ▢ Snagging and final sign-off process defined
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G. EXIT & CONTINGENCY PLANNING
▢ Primary exit defined (refinance, sell, hold) ▢ Secondary exit if Plan A fails ▢ What happens if refurb overruns by 30%? ▢ What happens if rent achieves 15% less than projected? ▢ What happens at remortgage if rates are 2% higher? ▢ What happens if the chosen strategy is no longer permitted at the address? ▢ How long could you hold the property with no rent coming in? ▢ Who do you call first if something goes wrong?
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RED FLAGS IDENTIFIED
List each red flag, the section it came from, and a severity rating (Low / Medium / High).
• Red flag #1 — Section: — Severity: • Red flag #2 — Section: — Severity: • Red flag #3 — Section: — Severity: • Red flag #4 — Section: — Severity: • Red flag #5 — Section: — Severity:
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ACTIONS REQUIRED
For every red flag and every unchecked item — what is the next action, who owns it, and by when?
• Action — Owner — Due date — Status • Action — Owner — Due date — Status • Action — Owner — Due date — Status • Action — Owner — Due date — Status
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A note from Katie
Due diligence isn't paranoia — it's how you turn a leap into a step. Every item on this list is here because someone learned it the hard way. If a section feels boring, that's usually a clue you'd rather skip the part that matters. Slow down, write it down, and ask for help when you need it.
Katie Chambers · Property Powwow Community