A Mortgage
Valuation
This is often called a
survey,
building society survey, bank survey or a mortgage survey. These
phrases
will very often be used by an estate agent or the layman. However, a
mortgage
valuation is not a survey.
A mortgage valuation is a very brief inspection of a building to advise of its value and suitability for a mortgage loan. The valuer will not be interested in reporting defects that do not affect the value to a significant extent and the valuer will not be looking for latent defects.
The inspection for an average sized property will last only some twenty minutes or so. This time scale gives a good indication of the limits of the inspection.
Whilst it is normal these days for the lender to provide a copy of the valuation report to the borrower this has not always been the case. The report, whilst of interest, does not contain sufficient information for an intending purchaser to form a view as to whether or not the property is a good proposition for purchase.
A prudent purchaser will obtain a survey for proper advice. This is always recommended on the mortgage valuation report.
A Building
Survey
This is commonly referred
to as a structural survey although nowadays is more correctly called a
building survey.
The survey is carried out under our own Terms
of Engagement
A building survey is suitable for any type of property. It is a very detailed inspection and report upon the construction, condition and repair of a building. The report will detail both major and minor items of repair together with advice on potential problems.
As a rough guide the time taken to carry out an inspection, on an average sized property would be in the region of three hours. The time could of course be longer than this depending on whether major problems are encountered.
The format of the report will be on the company's paper and normally extends to twenty or so pages for the average sized property in average condition. Our building surveys include an appendix containing photographs of defects and any particular points of interest. This can often be useful.
After the receipt of the report we are only too happy to discuss aspects that may be unclear or to provide further advice.
A Homebuyer
Survey and Valuation
Whilst this is a survey,
it is an economy package and the report is prepared in strict
compliance
with the Royal Institution of Chartered Surveyor's
Terms
of engagement
This type of survey is not suitable for all types of property and is only intended for residential property of a conventional type of construction and in apparently reasonable condition.
The survey is intended to give a concise description of the property together with essential repairs and major defects. The report will not concentrate on minor items of repair or defects that do not materially affect the value of the property.
The report is intended to give a purchaser good information to base an opinion as to whether or not to purchase a property and the report provides a valuation.
CHOOSING BETWEEN SURVEYS
Background information and advice from The Royal Institution of Chartered Surveyors
Why do I need my
own
Survey?
The best way to reach an
informed decision on such an important investment as a home is to have
a professional survey and valuation of the property which interests
you.
Before you decide to go ahead and commit yourself legally, you can
minimize
the risks by asking a qualified surveyor to answer these questions for
you:
* Is the agreed price reasonable?
* Are there drawbacks I don't know about?
* If so, what do I need to do about them?
Commissioning your own survey is the simple economical way to avoid unpleasant - and perhaps costly - surprises after moving in. In some cases, the surveyor's report may enable you to re-negotiate the price.
I already have a Mortgage Valuation report ...........
Even if you are seeking a mortgage - and may be paying for a Mortgage Valuation report - it is still advisable and prudent to arrange a survey by your own surveyor. The Consumers' Association Which? magazine and the Council of Mortgage Lenders both give this advice.
The reason is simple: the Mortgage Valuation report is prepared for the lender - not for you, the borrower. It answers only the lender's questions concerning the appropriate security for your loan. You cannot rely on it to answer the questions which concern your personal interests.
What choice of surveys do I have?
The RICS and also offer two forms of survey which are specifically designed to help home buyers:
A Building Survey (formerly called a structural survey)
A Building Survey is suitable for all residential properties and provides a full picture of their construction and condition. It is likely to be needed if the property is, for example, of unusual construction, is dilapidated or has been extensively altered - or where a major conversion or renovation is planned. It is usually tailored to the client's individual requirements. The report includes extensive technical information on construction and materials as well as details of the whole range of defects, major to minor.
The Homebuyer Survey & Valuation (usually called "The HOMEBUYER Service")
By contrast, The HOMEBUYER Service is in a standard format and is designed specifically as an economy service. It therefore differs materially from a Building Survey in two major respects.
* It is intended only for particular types of home: houses, flats and bungalows which are:
* conventional in type and construction
* apparently in reasonable condition
* It focuses on essentials: defects and problems which are urgent or significant and thus have an effect on the value of the property - although it also includes much other valuable information.
The HOMEBUYER, unlike a Building Survey, provides not only a survey but also a valuation as an integral part of the Service.
What else should I know about the HOMEBUYER Service?
The service - the inspection, the report and the valuation - are all explained in detail in the accompanying *Description of the HOMEBUYER Service*, but the highlights are:
* This is an economy package. Because of the practical limits on the type of property and on the scope of its coverage, the HOMEBUYER Service is priced mid-range - more expensive than a Mortgage Valuation, but less than a Building Survey.
* The surveyor's main objective in providing the Service is to assist the prospective home buyer to:
* make a reasoned and informed judgement on whether or not to proceed with the purchase
* assess whether or not the property is a reasonable purchase at the agreed price
* be clear what decisions and actions should be taken before contracts are exchanged
The surveyor also gives his or her professional opinion on the particular features of the property which affect its present value and may affect its future resale.
* The concise report covers the building inside and outside, the services and the site. It focuses on the defects and other problems which in the judgement of the surveyor are urgent or significant, but it also covers:
* the general condition and particular features of the property
* particular points which should be referred to the client's legal advisers
* other relevant considerations concerning for example, safety, the location, the environment, or perhaps insurance.
Matters which are judged to be not urgent or not significant are in general not included in the report, but the surveyor will mention matters judged to be both helpful and constructive.
* Where the client has a particular concern - perhaps whether the property is suitable for a disabled person- the surveyor will keep this in mind during the inspection. Or, a specific addition to the service - perhaps to the standard inspection - may be agreed between client and surveyor.
Where necessary, the surveyor may also be able to provide some extra service which is outside the scope of standard package - perhaps providing a schedule of minor defects (for later discussion with a contractor), or arranging for the testing of mains services by suitably qualified specialists.
* Where the client should take some action before deciding to proceed with the purchase, this is signalled clearly in the text of the report and included in the summary of action other key considerations.
(*The Description of
the
HOMEBUYER Service* is not included in the above but may be obtained
from The Royal Institution of Chartered Surveyors or from our offices).
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