What is a listed building: everything you need to know

When you start the process of looking for a property to buy, there will be the long list of requirements that the home will need to provide, from its location to the proximity of the amenities and transport links and so much more. 

But, quite often, it's the aesthetic - perhaps what many would refer to as the “character” of the property - that's important, which is why rural locations are at a premium, as well as the “chocolate box” beauty that some properties can provide - say, the Tudor-look timbers or the thatched roof.

Some people choose to buy in a conservation area, which can offer protections to how the location of the property and the building itself looks, and which comes with some restrictions as to what is allowable to be changed to the external façade.

Others might be more interested in taking on a listed building, either because of its protected beauty or its connection to important local history or architecture. But there are even more stringent requirements placed upon the owners of listed buildings as to what can be done with the building and its grounds - and the challenges that buying a listed property presents might be too much for most people.

A listed building is a property that the National Heritage List for England has identified as being of specific historic or architectural interest, and may also incorporate the National Blue Plaque Scheme, which highlights the particular historical significance by who once lived there. 

The listed status of a building means that it is protected by law and must be maintained according to a set of rules, in order to protect and preserve them from being changed or redeveloped to an extent where that specific interest is lost. 

Any building can be recommended for listed status through application to Historic England, but the organisation has strict criteria to be followed governing how and when a building can be granted listing status, and which categorisation it will be designated.

There are different levels of listed buildings: 

• Grade I is the top level of buildings, which are designated as being of exceptional historical interest or national importance, and, although these are the fewest on Historic England's list (around 2% of listed buildings fall into this category), they are the category that require the most care. 

These are usually the much older buildings that incorporate castles and cathedrals, as well as churches and places of learning such as some of the older universities.

• Grade II* is the next level of listing, covering buildings that are particularly important and are of more than special interest. 

According to Historic England, these account for around 6% of the total number of listed buildings.

• Grade II is the lowest level, which is the most common with 92% of listed buildings falling into this category. 

However, although it is the most common, even these buildings require a level of maintenance which can be higher than a standard property.

When you buy a listed building, and depending on its categorisation, you will be limited to what can be done to the building both inside and out. 

Specific exclusions may be made to each building that has been granted listed status, but your basic assumption should always be that the applied restrictions cover everything in the building, both the interior and exterior.

Where planning has been granted for changes to be made, there will be stipulations that cover the materials used for any construction work, the colours used to paint the exterior, the style of windows and doors to be used, and a number of other items that protect the building's status. Where there are granted (and accepted) additions, these extensions and changes will also fall under the provisions of the listed status for the future.

Listed building consent must be sought before any work can be carried out. Failure to do so is a criminal offence and will result in legal proceedings being taken against you as the owner of the property and the person appointed to carry out the work, since they are implicated in the offence.

Proven criminal offences may result in a prison term, carrying a maximum of two years, as well as an unlimited amount in fines. Bear in mind, too, that, while a retrospective listed building consent may be applied for, it may not be granted and you may therefore still be prosecuted.

It is critical to find out your position before lining up any tradespeople and carrying out the planned changes. It is far better, however time-consuming, to be clear on whether some planned work will require the extra consents for a listed building or not before you proceed with it.

The council responsible for planning permissions for the listed building may also force you to return the building to its former position if unauthorised work has been carried out, which can be a costly undertaking and may be even more than the cost of the original work that changed it.

Some listed buildings will also come with requirements for maintenance to preserve the look and outward appeal of the property, which needs to be factored into your budget. For example, the property might have a stipulation that the façade is repainted in a specific colour every so many years, or that the external wood is given regular protection from the elements.

If you've not been put off by the requirements and constraints of owning a listed building and its designated grading, there are a few things that you'll need to consider before taking that final plunge and putting in an offer:

• Mortgage - because of the increased risk to the security of the loan, mortgage lenders will tend to be more wary of lending to buy a listed building. 

While such loans are available, you might also find that the rates for borrowing are less favourable than for a purchase of a standard home. 

In addition, you'll need to consider that the mortgage companies will probably require you to come up with a larger deposit.

• Structural problems - Homeward Legal would always advise getting a Level 3 Survey on most purchases so that you know precisely what you will be taking on with the home and its renovation and ongoing maintenance requirements. 

But it becomes even more critical when taking on a listed building - not only because of importance of the building in its own right but also because it is likely to have greater problems because of its age and construction. 

Typical problems identified are timber rot, existence of asbestos, and damp, while the energy efficiency may be lower than other buildings because of the restrictions on the installation of double-glazing and other modern methods of managing the heat and insulation throughout the property.

• Cost of repairs - with the structural survey, you'll receive a list of problematic areas, their severity and an idea of how much remedial work will cost. This is over and above the standard ongoing maintenance schedule and bill.
• Listed building consents - one of the problems with a listed building is that any work that has been carried out without the necessary listed building consents will need to be reinstated (or require retrospective planning consents that don't guarantee acceptance). 

If you buy a property that hasn't had the consents, the responsibility for fixing the problem is passed on to you.

• Availability of grants - Historic England provide a Repair Grant scheme, for which you can apply for assistance if your listed building is on the Heritage at Risk Register. It's worth investigating if you would otherwise not be able to afford the identified remedial work.
• Insurance - Mortgage lenders will insist that you take out buildings insurance when they are preparing to offer you a loan. 

When you contact the insurance company, you must inform that the building has listing status and how it is categorised. 

Be aware that, depending on the type of building and the reason for its listed status being granted, you might have to take out specialist insurance, but the provider will be able to guide you through what's required. 

Bear in mind, too, that the insurance should cover the cost of rebuilding, which will naturally be higher because of the stipulations that might be in place regarding the construction materials used and the building methods that might need to be employed.

If you have found a property that is listed in one of the three categories, you'll need the best conveyancing solicitor to work through all of the complexities and  extra legal requirements that come with buying or selling such a property.

The experts at Homeward Legal will talk you through each stage of the process so that you know what is happening at any point and why and what your role is. They are well-versed in all aspects of the conveyancing process, providing a quality conveyancing service at a fee that is great value for money!

Call  to get your conveyancing quote started, or to discuss your concerns with your plans to purchase or sell your next home.