Accidentally bought a cannabis farm?

Window tax blocked up window on period property

A quick Google of “cannabis farm UK” will deliver a shocking number of news articles related to the discovery of illegal farms around the country. Victims of the crime include landlords who unwittingly rent out property that is subsequently abused. Others are homebuyers, who purchase a property only to subsequently learn of its prior use as a cannabis farm.

You might think cannabis farms would be located in rural properties, but this is not the case. They can be found in disused warehouses, terraced houses, city centres, requisitioned HS2 farmhouses and even police stations. (Yes, one was discovered in a former police station in Streatham, south London, when the stolen electricity arrangement caused a massive fire. The building was sold off in 2015 to a private buyer for £4.2 million.)

The “weed” demands high levels of heat and light, and the enormous amount of power needed to supply this is often obtained illegally. Huge ducting is installed through ceilings, walls, windows and chimney breasts, often causing severe damage to the property. One homeowner even returned to the the property they had rented out while working abroad to find tons of topsoil inside the house, although grow bags and plant pots are also used to grow the plants.

Once the police have stopped the illegal activity, the owner of the property can be left with a lot of work to do and a property value much lower than it should be.

Crime statistics show that 90% of cannabis farms in the UK are in rented property, often in the loft space.

Buying property through auction?

When you buy a property, whether through an estate agent or auction, you have certain rights – but alongside this you have your own responsibilities. Sadly, caveat emptor is very much the case, and if you’ve accidentally bought a former cannabis farm then perhaps you have not used sufficient scrutiny when purchasing the property.

The principle of caveat emptor (let the buyer beware) is that the seller is not responsible for any issues or defects with the property. This protects the seller from liability, while placing due diligence on the buyer.

It is the responsibility of the home buyer to make their own decisions prior to purchasing a property, and for this they must take full responsibility. What this means in practise is taking every step available to ensure you are buying what you think you are buying. If the price seems too low, you should take care. If you are not a surveyor, get an independent Chartered Surveyor to carry out a building survey. Admittedly, arranging a property survey if you are buying at auction may not be straightforward and there is a risk you will be outbid.

Property auctions are a good way for sellers to quickly get rid of problem houses but the seller is obliged to declare any key information including title defects, hidden covenants, access rights, or other loopholes. Ask for a legal pack as well as the sales particulars, and ask a solicitor to look at all the legal documents before bidding. Buyers may have some rights to claim for misrepresentation if there has been a failure to disclose key information, although discovering that the property has been physically adapted as a cannabis farm would not come under the requirement to disclose information as this fact should be noted during any inspection.

Buying a cheap property at auction is fraught with danger if you fail to obtain advice from a solicitor and a Chartered Surveyor. Up front fees will be payable for the property, whether or not you secure a purchase, but you are likely to pay substantially less for the property in the first place and can save thousands by using a sensible approach to buying at auction.

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