What Type Of Surveys Are There?

This post discusses the various types of surveys available to home buyers available at http://www.mortgagebrokeradvice.co.uk/

WHAT IS A MORTGAGE VALUATION ?

A mortgage valuation ( or sometimes known as a valuation report )  is not a survey as such – lenders want to know how much the property is worth and to be notified of the property’s present condition.

Lenders will either use their own valuers or a valuer from their chosen panel to do a valuation report – with the valuer making comment to any repairs / reports required ie, structural report, timber and damp, electrical etc.

Unless the lender is offering a free valuation you will have to pay for the cost of this basic report on application of the mortgage.

If any further reports are required such as Timber and damp these usually have to be arranged and paid for by the purchaser unless the vendor of the property is prepared to pay / go halves on these costs.

WHAT IS A HOMEBUYERS REPORT ?

A Homebuyers report is a more detailed survey than the mortgage valuation / report.

It will advise on any major problems such as subsidence, and obvious rot etc.

However the surveyor will not lift up floor boards or drill any holes but provides a more in-depth report than a valuation report – it also costs more.

Again any defects will require more detailed reports as mentioned above.

WHAT IS A BUILDING SURVEY ?

These cost the most but are a more comprehensive detailed report and are usually for very old, timber framed, unusual , listed or thatched properties with the surveyor going in the attic, checking behind walls and looking between floors and ceilings.

They will usually contain estimates and costs and advice for any defects found.

WHAT TYPE OF VALUATION SHOULD I HAVE ?

As everyone has different levels of experience within the house buying process speak to your mortgage broker who will be able to advise you on what report / survey in your particular circumstances should undertaken bearing in mind the condition and age of the proposed property to be purchased. 
 
WHAT IF LENDER WILL NOT LEND THE FULL AMOUNT REQUESTED ?

If after having one of the above reports / surveys done and repairs / work has to be done to the property the lender will require written estimates for the full cost of said repairs – in certain cases the lender will then place what is called a RENTENTION on the mortgage.

For example if you are buying a property for £ 125,000 and require a mortgage of £ 110,000 with you putting in a deposit of £ 15,000 and repair costs are £ 5,000 the lender will reduce your mortgage to £ 105,000 meaning on completion you will have to increase your deposit to £ 20,000.

The lender will then normally give you up to 6 months to have the repairs / works done and will either accept receipts / guarantees provided by the companies who have done the work or send a valuer back to re-inspect your property ( usually for a fee ) and will then increase mortgage back up to £ 110,000 and forward you the £ 5,000 which was previously retained. 
 
Please ensure you fully discuss your valuation / survey requirements with your mortgage broker prior to submitting a full mortgage application to the lender.