A quick guide to surveys
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A mortgage valuation is for the lender to decide whether the property represents a good security against a mortgage. It is a description of the property and should highlight defects that may affect its value. Costs are usually £1 per £1,000 of a property's value - typically around £200.
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A homebuyer survey and valuation is more detailed and should cover all readily accessible parts of the building but is not an exhaustive assessment. Costs are usually between £300 and £500.
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A building survey is intended to be a full, comprehensive report but is unlikely to include lifting carpets or going on to the roof Costs are usually £500 to £800 plus VAT depending on size and sometimes age, type or location of the property.
A mortgage valuation
If you are applying for a mortgage, the lender will ask for a mortgage valuation to check the property's value and ensure that it is a good security against a mortgage. Many buyers rely on the valuation to decide whether a property is sound. However, it is merely a description of the property and any defects that could affect its value, not an extensive report.
A homebuyer survey and valuation
A homebuyer survey and valuation isn't a comprehensive report but it will assess the parts of a property that are easily accessible, including the roof structure and covering, damp, guttering, loft space and the garage.
A building survey
This survey comments on all aspects of the property in more detail. This is recommended for any building built before 1900 or which has unusual construction. Formally known as a full structural survey.
Understanding vagueness
Although a full structural report is thorough and detailed, the report can be peppered with vague phrases like 'you may wish to seek further advice from specialists'. Surveyors are not experts in every aspect of construction so if they suspect there is a problem, they use words like 'could', 'possible' and 'may' to alert homebuyers to the fact there might be a problem they can't quite diagnose. If in doubt, get a specialist to check out the problem and put your mind at rest.
Confusion and compensation
The Consumers Association produced a report, Surveys that don't give you the whole picture, investigating complaints. It showed a general confusion about what surveys are supposed to pick up. It also revealed that complaints against surveyors rarely end in compensation for buyers. Subsequently, the Royal Institution of Chartered Surveyors (RICS) has reviewed its procedures and simplified the arbitration scheme. It also produces leaflets explaining surveys and will issue contact details for three registered surveyors in your area on request.
Getting a thorough inspection
It is estimated that only 15 to 20% of buyers commission more than the basic valuation, and although you can find out 80% of a property's details in the first half hour of a visit, you really need two to three hours to discover a building's current defects.
A good surveyor will have adequate tools for a full inspection, such as equipment to lift a drainage cover and a ladder for entering loft spaces. For a really good survey be prepared to lift carpets and heavy pieces of furniture so the surveyor can look everywhere. It's worth speaking to your surveyor before he carries out the work. Tell him exactly what you want and afterwards, and ask him about anything you don't understand in the report.
Home Information Packs
As of 1 June 2007, vendors will have to produce a Home Information Pack (HIP) before marketing their property. The HIP can voluntarily contain a Home Condition Report (HCR), similar in content to the current RICS (Royal Institute of Chartered Surveyors) mid-range homebuyers survey and valuation. If a HCR is included, the pack should cost between £600 and £1,000. Although the vendor will have to foot the bill, they will not have to get a survey done on the property they buy as it will already be in the HIP ahead of them. The buyer can always commission and pay for a more in-depth survey if they want more details or have specific worries.
This article was last updated on 11 August 2006