Surveys
Your home is likely to be the biggest purchase you’ll ever make, so having a survey is worth it. A survey not only offers peace of mind, but could potentially save you thousands of pounds in costly repair bills in the future.
You may think that the valuation you pay your lender to carry out is sufficient. However RICS, Which?, the Council of Mortgage Lenders and any solicitor will advise you to get a survey before you buy a property, and not just to rely on a mortgage valuation. Of course that goes for What Mortgage as well! A lender valuation isn’t a survey. It’s a limited check on the property to work out how much the property’s worth so the lender can decide whether to give you a mortgage or not.
The valuer is only concerned with problems that might affect the security of the loan, not whether you have any structural problems that need fixing. Lenders may provide a copy of the mortgage valuation to the buyer but it is unlikely to cover items of detail which would be picked up in a survey. With a survey you will be able to see if there are any structural problems affecting the property you want to buy. There are two main types:
* Homebuyer Survey and Valuation (HSV):
This is most suitable for conventional properties built within the last 150 years, which are in reasonable condition. It provides a concise report detailing any significant problems that could make a difference to the value of the property; and
* Building Survey:
This is suitable for all residential properties, providing a detailed report on their construction and condition. It is particularly useful if the property is dilapidated, has been extensively altered or you’re planning a major conversion or renovation. In addition, if the property is old it may be worth choosing this option.
Although you will have to pay for the valuation, a survey can actually save you money. If there are serious problems, you can often re-negotiate the sale price of the property to reflect the cost of necessary repairs – or you may even decide you don’t want to buy it at all.
Your surveyor will report on all the parts of the property they can easily reach. They don’t inspect under carpets or furniture, and they don’t test the water supply or wiring – though they’ll comment on their condition.
If you’re about to buy a property, you may have specific worries about the building you’re going to buy. Talk them through with the surveyor. If you’re interested in making structural changes to a property, or you think there may be a damp or dry rot problem, the surveyor will be able to advise you about this too. Their report is designed to help you make a more informed decision. Costs vary according to which type of survey you have, but both Homebuyer’s Survey and Valuation Reports (HSV) and Building Surveys can offer reassurance.
An HSV includes details of:
The general condition of the property
Any major faults in accessible parts of the building that may affect the value
Any urgent problems that need inspecting by a specialist before you sign a contract
Results of tests for damp in the walls
Damage to timbers – including woodworm or rot
The condition of any damp-proofing, insulation and drainage (though drains aren’t tested)
The estimated cost of rebuilding the property for insurance purposes
The value of the property on the open market.
If you want to buy an older property, you should seriously think of having a Building Survey first. This will find out if there are any hidden structural problems, and could help you avoid spending a small fortune to fix things at a later date. It’s suitable for all properties, especially:
Listed buildings
Older properties
Buildings constructed in an unusual way, however old they are
Properties you plan to renovate or alter in any way
Properties that have had extensive alterations.
It examines all accessible parts of the property – and you can ask to have specific areas included, so it covers any particular concerns you have about the building. It is a product which can be tailored to your needs, agreed between you and your surveyor.
A Building Survey can include details of:
Major and minor defects and what they could mean
The possible cost of repairs
Results of damp testing on walls
Damage to timbers – including woodworm and rot
The condition of damp-proofing, insulation and drainage (though drains aren’t tested)
Technical information on the construction of the property and the materials used
The location
Recommendations for any further special inspections.
A Building Survey doesn’t include a valuation, but your surveyor can provide this separately if you need one.
When you buy an older property for renovation, you need to check building regulations carefully – your surveyor can help ensure this is done accurately and professionally. Some major building repairs may also need permission from your local authority building regulations department. Before you buy a property to renovate, work out the total cost of repairs on top of the initial outlay – and decide whether the property is still worth renovating.
If the property is a listed building, or in a conservation area, any work you do on it may be restricted, and have to follow certain guidelines. The scope for any structural change could be extremely limited and you’ll need to discuss any proposals with your local planning authority. You may also have to get consent from English Heritage (or Welsh Heritage/CADW) before work can begin. Again, your surveyor can advise you on this from the start.
Date: 30th, January, 2008
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