Keystone IMC Mortgage Section The different types of surveys
There are three types of survey to consider when purchasing property. Below we look at the different types as well as the pros and cons of each option.
If you are applying for a mortgage your mortgage lender will insist that they carry out a basic valuation. The purpose of this report is for the lender to be satisfied that the property you are proposing to purchase is adequate security for the mortgage you are applying for. Although it is carried out by a suitably qualified surveyor it is by no means a survey and therefore should not be treated as such.
When the surveyor writes up his survey report for the bank or building society he will, where possible, have collated comparable similar properties that have sold, ideally, within the last 3 months to use as evidence to support his valuation. Occasionally the surveyor's valuation will differ to the price you have agreed to pay the vendor and this may affect your mortgage application. Examples of this would be where a lender refuses to lend on the property, offers you a reduced mortgage or places a retention or undertaking as a condition of your mortgage loan.
See the glossary on the right for definitions of retentions and undertakings. If you are looking for a more detailed report on the property you should consider either a Homebuyer Survey & Valuation or a Full Structural Survey.
The Homebuyers Survey is a mid price and mid range option that usually follows a standard form for the surveyor to complete when he/she visits the property. In addition to the Homebuyers Report a mortgage valuation is usually carried out at the same time. This type of survey is considered suitable for properties that are of standard construction and in reasonable condition.
This type of survey is the minimum we would recommend to buyers. The cost of a homebuyers report is typically about £200 more than the basic valuation report but could save you thousands of pounds in the future.
Assuming you were not aware of the repairs and their likely cost before you agreed to purchase the property then the report can be used to renegotiate the price. What you thought was worth £150,000 when you offered all of a sudden doesn't seem quite such good value if you have to spend £15,000 replacing the roof.
Due to the Full Structural Surveys cost it is often not considered the most popular however it is the best option when cost is put aside. This survey will go in to the most detail of all the surveys and is strongly recommended when you are purchasing a property that is listed, of non standard construction or older than 150 years old.
The Full Structural survey is usually arranged independently by the buyer.
The picture below illustrates all of the components that make up a property and highlights the fact that a simple glance over when viewing a property doesn't really tell you everything you need to know.