Which house survey?
When you are buying a home, you should have all the relevant information to give you peace of mind but which of the several types should you choose?
By Nick Partington
What are the different types of house surveys?
When you buy a new house then your mortgage lender will insist on a valuation to make sure the property is “suitable for mortgage purposes”.
It may be advisable to get a more in-depth survey of the property before you commit to buying it, this would depend on the age and condition of the property and also how much experience you have with houses.
- Mortgage valuation survey
Commonly confused for a home survey. A mortgage valuation survey isn’t actually a survey, it is a report prepared after an inspection of the property and it is carried out on the mortgage lender’s behalf.
They are carried out by a RICS surveyor, they are appointed by the lender, and are intended to ensure that the property provides suitable security for the mortgage.
Any obvious defects will be pointed out, but it must not be relied upon as evidence that the property is in good condition.
The report is basic, and cannot be relied upon as an indication of the condition of the property, you do not have any comeback on the surveyor or the lender regarding the report, and in many instances, you will not be allowed to see a copy of the report.
- Homebuyer Report
A homebuyer report, on the other hand, is conducted by a surveyor acting on your behalf as well as for the lender – and therefore offers impartial advice on the property you’re looking to buy.
It will report on the condition of the property, and whether it is a suitable purchase at the price agreed. It is more expensive and extensive than the basic valuation, this survey and valuation covers all accessible parts of the property but is still less comprehensive than a Building Survey.
The report specifies major defects and, if possible, will include a roof inspection but the report does not detail remedial works.
Advice can be given on specific items if required, and if further specialist investigation is thought necessary this will be stated in the report.
- Building Survey
Sometimes referred to as a full structural survey, is the most detailed type of survey, usually only required on older, exceptionally large, unusual or where potential defects are already evident or disclosed by the seller.
Building Surveys can take many hours to complete and cover all aspects of the property in greater depth than the Homebuyer’s Report. It can also detail remedial works required. You have right of recourse to the Surveyor in the event a defect with the property is subsequently found which would have been there when the original survey was done.
“It’s estimated only around a third of homebuyers opt to have a survey of some sort carried out on the home they end up buying. Reduction in the price to match the repair issues found means that two thirds of buyers are paying too much for their home”
Which one do I need?
That really depends on the property you are buying and you should seek advice from your mortgage broker or estate agent.
You need to appreciate that a mortgage valuation is for the lender to assess whether the property you’re buying is worth the asking price, before they approve your mortgage.
Whereas a homebuyer report is for your benefit, it could save you a substantial amount of money should there be problems with the property. It may also provide you with evidence to negotiate a reduction on the property’s asking price. It could even make you think twice about buying the property at all.
You should also be aware that some lenders offer mortgages with free valuations and you can ask for this to be upgraded to a homebuyer report, you would only pay the difference between the two and could get a homebuyers report for around £250 which may be good value.
A homebuyer report costs from around £500, depending on the size and value of the property. Even if you can’t get a discount, this can still represent excellent value if it identifies serious issues with the property.
Contact us today for more free mortgage advice.
