types of house survey
You’ve found the home of your dreams and already planned in your head where everything is going to go. Then you’re sent crashing back down to earth by Family and Friends who start reminding you there’s still a long way to go. There’s Solicitors to contend with, and of course going through the right types of House Survey.
what are the different types of house survey?
One of the first questions we are often asked by First Time Buyers is what are the different types of House Survey we can have on our new Home? Which is usually follow by which one should we choose?
there are four main types of house survey:
This is the most basic type of Valuation and your Mortgage Lender will complete this. It’s important to stress that this is the Lenders report and dependent on the Lender you may or may not be able to get a copy. The sole purpose of the Mortgage Valuation is to give the property you are purchasing an independent valuation and to ensure the Property fits the Lenders Criteria.
The Mortgage Valuation is not a Survey and although the Valuer may pick up obvious issues and relay these to the Lender. You should not rely on this.
Although the Report is not for your purposes. Dependent on the Lender, and the product. You may have to pay for this. Typically, the Valuation will cost between 0-£200. However, if you are using a Specialist Mortgage Lender due to Adverse Credit for example, it may cost quite a bit more than this.
A basic Survey which is designed to describe the overall condition of the property and highlight any major defects and any potential Legal Issues.
The Surveyor will not give a Valuation on the Property or provide any advice or recommendations on repairs if applicable.
The Report is designed for Properties that are relatively new or which have recently undergone a significant refurbish.
The Conditions Report is the cheapest type of Survey and will cost around £200.
This is the most Survey instructed by buyers on their new Home. The Surveyor will highlight any visible defects on the property and provide Advice on what repairs will cost and how urgent the repairs are using a traffic light system. Green being no action needed to Red being urgent repair needed.
A Valuation will usually be included too based on the current condition of the property. As well as an estimate on what the property would cost to rebuild, which is useful for Insurance purposes.
The Homebuyers Survey is suitable for Traditional Homes and the cost is usually between £250-£500.
full structural building survey
The most comprehensive type of Survey, which is usually recommendable for Older (100 years+), Listed or Larger Properties. Building Surveys may also be useful for Properties you plan to significantly renovate.
Like the Homebuyers report the Building Survey will provide advice on repairs but will go into greater detail. For example, looking in Lofts and moving objects if applicable to better inspect the ground. They will also give advice on any potentially hidden defects the Surveyor has not been able to access.
The cost of the Building Survey will usually be in excess of £600.
survey for new builds
New Build Snagging Survey – if you are purchasing a property which is a New Build, you can get a Survey specifically designed for New Build Properties, called a Snagging Survey.
This is designed to highlight any issues that you would be able to resolve through your Warranty (NHBC Certificate for example). The Developer will be required to complete the works.
The cost of the Snagging Survey is similar to the cost of a Homebuyers survey, between £250-£500.
what to do if your property is down valued by the lender?
If your Mortgage Lender feels the property you are purchasing is worth less than what you are paying. The first thing to decide is whether to appeal the Valuation or accept it. If you choose to appeal. You will need to provide them with examples of properties that are similar to the property you are purchasing, and that are within a close proximity, that have sold for a price that books up what you are paying. Sadly, even if you are able to find good examples that back you up, Mortgage Lenders rarely overturn down Valuations.
After this, you will have 3 options:
- Renegotiate the price down with the Seller
- Try a different Mortgage Lender if you are in a position to do so
- Or increase your deposit to pay for the Shortfall between what the Lender states the property is worth and what you have agreed to pay
what to do if your survey uncovers problems?
If the survey uncovers problems, that you want fixing. You can either renegotiate on the purchase price. Or arrange the current owners to fix whatever needs sorting prior to you completing the purchase. If it’s something minor, you may decide that it’s something you can fix when you complete and move in.
what surveyor should i use?
Most Surveyors will be registered under the main Governing body for Surveyors known as the Royal Institutes of Chartered Surveyors (RICS).
Providing they are a member of a Governing body such as RICS, it doesn’t really matter which Surveyor you use. However, we would recommend a Surveyor local to you that knows the area you are purchasing in.
our mortgage brokers
We work with a variety of Mortgage Brokers which each specialise in different Mortgage Advice areas. When you get in touch, simply select the reason why you’re getting in touch i.e. First time buyer, Bad Credit, Remortgage etc. And we will match you to the Mortgage Broker which Specialises in your circumstances.
Get in touch for a free non-obligatory conversation with one of our Specialist Mortgage Advisors for further information on how they can help you.
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Whether you’re a first time buyer or simply looking to Remortgage. Get in touch with us today, so we can put you in touch with a Mortgage Advisor which Specialises in your case.