Guide to Surveys
Once you’ve found the property you want, you should arrange a property survey to check out its condition and value. This will help you make an informed judgment as to whether you should buy a property. It is wise to have the survey conducted before exchanging contracts so if there is a problem, you will have time to negotiate any suitable price reduction with the seller if you wish.There are three types of survey; valuation report, homebuyer survey and structural survey.
Valuation Report - Typical cost: £300
This is the simplest and cheapest form of valuation of a property, and will be all that a mortgage lender will require. Most mortgage lenders will instruct this type of valuation on your behalf and use one of their panel valuers. Its purpose is to reassure the lender that the property is sufficient security against the loan they are offering. So if you default on your payments, the lender wants to be able to sell the property at a price that will meet the outstanding debt.The valuation takes a short time. A surveyor will check the property inside and out, and assess a suitable value based on its general condition and the values of recently sold properties, and the state of the housing market. The report will contain a summary of condition, with comments on any general faults. It will also have brief recommendations to the buyer on further checks to be carried out.
If you are buying a new-built home, the valuation is probably sufficient especially if the builder has signed up to the NHBC Buildmark warranty. But if you are buying an older property, it's advisable you get a survey before you buy.
To view what a valuation includes and does not include visit www.rics.org/propertysurveys.
Homebuyer Survey - Typical cost: £250+
This is more detailed than the valuation report and can often be carried out at the same time. It’s not usually suitable for properties in need of renovation, or if you’re planning major alterations. The survey will check out:- the general condition of the property.
- any major faults in accessible parts of the building that may affect the value.
- urgent problems that need inspecting by a specialist before you sign a contract.
- results of tests for damp in walls.
- damage to timbers – including woodworm or rot.
- the condition of any damp-proofing, insulation and drainage.
- the estimated cost of rebuilding the property for insurance purposes.
- the value of the property on the open market.*
Full Structural Survey - Typical cost: up to £1k depending on property value
This is the most complete and expensive survey. It is suitable for all properties, especially listed buildings, older buildings, properties you plan to renovate or alter in any way. So you should consider this approach – spending a little more now could save you significant sums in the future. The survey will advise on:- major and minor defects and what they could mean.
- the possible cost of repairs.
- results of damp testing on walls.
- damage to timbers.
- the condition of damp-proofing, insulation and drainage (though drains aren’t tested).
- technical information on the construction of the property and the materials used.*
- the location.
- recommendations for any further special inspections.
Other Reports
There are then a number of specialist reports which can be undertaken by experts in their specific field, such as timber treatment and damp-proofing. The reports are generally undertaken free of charge as part of a firm’s quote for the repair work.*Source: RICS