Valuations
What Type of Survey Should I have?
There is often confusion about the different types of surveys/ inspections that can be undertaken on residential property.
The three main types are:
The survey that best suits your needs will depend upon the type and age of the property that you are buying.
Mortgage Valuation
This is not strictly speaking a survey but is often mistakenly referred to as such by buyers. Most people buying residential property require a mortgage. Before a lender issues a mortgage offer they will carry out a valuation inspection and although this is for the benefit of the lender it is paid for by the purchaser. A mortgage valuation consists of a brief inspection of the property and is concerned only with issues that may affect the value of the property as security for the loan.
Despite advice by organisations ranging from The Council of Mortgage Lenders to Which approximately 80% of people buying residential property still do not have a detailed survey but rely on the lender’s valuation. If you would like a more comprehensive report on the property you intend to buy there are two types of survey that you can have done.
Homebuyer’s Survey and Valuation Report
More commonly known as a Homebuyer’s Report this is a level two property survey with a format prescribed by the Royal Institute of Chartered Surveyors (RICS) and is suitable for most properties. A Home Buyers report can only be carried out by a Chartered Surveyor. The focus of the report is on factors that affect the value of the property and matters requiring urgent attention. It is designed to be written in a freestyle manner but the surveyor but will always cover the following:
- General background information on the property and its location.
- Evidence of the three greatest potential threats to the structure of the building; movement, timber defects and dampness.
- An internal and external examination covering the main elements of the building.
- An overview of the services including recommendations for further testing if appropriate
- The market value and re-building costs.
The report is designed to be as user friendly as possible. In case buyers do not read the entire report all urgent matters are summarised and there is an overall opinion on the first page.
Building Survey
Previously known as a Full Structural Survey and also carried out by an RICS surveyor the Building Survey is the most comprehensive survey available for residential property. This level of report is generally only required if the property is over 150 years old, of unusual construction, if you are planning to undertake significant alterations or if the property has already been substantially altered.
A building survey is more detailed than a Homebuyer’s Report, pointing out more minor defects and providing guidance on the cost of correcting them. It does not generally include a valuation although your surveyor will normally be happy to provide one if requested.
What ever type of survey you have, its purpose is to put your mind at rest. If you have any particular concerns about the property you are buying or are planning alterations let your surveyor know in advance. Equally if there is anything in the finished report that you don’t understand don’t hesitate to ask for clarification.
If you require a survey on a property in North London call us on 020 8445 8508 or e-mail us for a quotation including a brief description of the property including the size and agreed price.
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