Surveys and Valuations
The Valuation Report
When buying a property with a mortgage, this report is acquired by the mortgage lender. A valuer will visit the property to offer a standard viewpoint to the lender about whether it offers security for the mortgage you have applied for, i.e. whether on consideration of the value and condition of the property, it is worth the mortgage lender making a loan to you secured on the property.
You should not rely solely on the assessment record when reaching a decision on whether to continue with the purchase, whether it is adequate for your requirements and whether its condition is sufficient. The exception is in the case of a brand-new construction which has the advantage of an NHBC Certification and has been built within the last 10 years. You can find even more info about the NHBC Scheme at www.nhbc.co.uk
The Home Buyer’s Report
This is a more comprehensive record, which normally costs around £500.00. The surveyor prepares a more in-depth report for you, showing matters needing immediate attention or that might require attention in the future. This report is prepared on your behalf, instead of for the advantage of the mortgage lender.
People typically think that they have had a survey done when they have actually only had an assessment report carried out; however, please keep in mind that an appraisal is simply that; it is undertaken for the mortgage loan provider to establish lending values.
You must arrange for your survey as soon as a firm offer has been accepted by the seller and make sure that you get the outcomes before proceeding further.
If your surveyor does identify a potential costly problem, such as extensive woodworm, damp, damp rot etc, then you may be able to negotiate a decrease in the purchase price to take repair works into account. In this way, the survey can pay for itself. Remember that the seller is not legally obliged to inform you about any structural problems; it depends on you as the buyer to find them. Are you likely to be able to discover them yourself? Many would answer “No” and this is why the survey is so essential.
Ensure that you read the small print though; the surveyor might not examine unexposed or unattainable areas, for instance below the floorboards or the roofing space.
The full structural survey
This is the most expensive kind of survey and obviously, the most in-depth. Most individuals are put off by the expense of this kind of survey however when buying a home, it is definitely much better to understand exactly what you are letting yourself in for before hand.
There are circumstances when full structural surveys should always be carried out;-.
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- If the property is more than 80 years old.
- If the home is of high value.
- If you plan to change the home structurally.
- If the home is not of standard construction, in bad condition or in need of renovation.
- You are paying cash for the home, or you are acquiring a small mortgage.
- The home is in close distance to features that might cause subsidence or other structural problems i.e. mines, filled-in gravel pits, rivers, or vibration damage from railways or airplane.
This kind of survey in theory provides the actual state and condition of the property however once more, make sure you read the small print for exclusions.
The Mortgage Hut are an Independent “Whole of Market” UK Mortgage Broker. We are committed to offering the best financial advice and the highest standards in customer care.
Contact The Mortgage Hut today, you will be pleased you did.
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