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What Is The Difference Between Mortgage Valuation And Homebuyers Report?
A question that is commonly asked by people buying properties is, “what type of survey will I need?”.
There are several different of property surveys available depending on what level of inspection the buyer would like carried out.
This will likely depend on the condition of the property itself. A mortgage valuation will be needed for every mortgage; however, you may want something a bit more in-depth.
Valuers should be qualified, RICS ensure the highest standards of surveying, RICS surveyors should be the only choice for serious survey projects
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A mortgage valuation is the most basic type of property inspection that can be done. This is carried out on behalf of the lender. Lenders instruct mortgage valuations on all mortgages and bridging loans as a minimum requirement.
The main objective of a mortgage valuation is to establish the value of the property and confirm whether it meets the lender’s lending policy.
When a mortgage valuation is carried out, the surveyor may not even visit the property. They are sometimes able to confirm that the property is suitable for the lender by driving past or carrying out checks online, for example, using tools like Google Streetview.
When a valuer does go out to inspect in person, this is usually a quick process and they’re not expected to carry out any detailed investigations.
For instance, the surveyor would not be expected to be looking at the electrics or plumbing in the property.
Their job is to ensure that the property that you were buying is good collateral for the lender’s mortgage.
If I did however notice something that raised a concern, they would report this back to your mortgage lender.
Although you may be required to pay for the mortgage valuation report yourself, the Surveyors are acting on behalf of the lender, not for you.
This is the cheapest type of property survey available.
A homebuyer’s report is more in-depth than that of a mortgage valuation. This is provided to the person that is buying the house rather than the lender.
A homebuyers report is for somebody that wants reassurance that a property has been checked in some depth with a conservative opinion of the value of the property.
A homebuyers report is non-intrusive meaning the surveyor will not be pulling back carpets or looking under the floorboards so will only be able to identify surface issues.
It will highlight problems that the surveyor says that may affect the value of the property.
It will include advice from the surveyor about repairs which are necessary and possibly ongoing maintenance too.
A homebuyer’s report is paid for by the buyer to benefit them, rather than for the benefit of the lender.
The cost of a homebuyer’s report is in the middle of a mortgage valuation and a full structural survey.
Full Structural Report
In many cases, constructing a homebuyer’s report would usually highlight the problems and Solutions related to the property you are buying.
However, there are times when a full structural survey will be necessary.
For Instance, if you are looking to buy an old property that requires a full renovation, you may wish for a more intrusive and detailed report of the property.
The surveyor that carries out your full structural survey may also be a qualified structural engineer.
It is often the case that they are instructed when a serious concern about the property is noted.
A full structural survey should show you any serious problem related to the property so you have peace of mind if serious issues have not been found.
Surveyors that carry out property surveys are required to have professional Indemnity Insurance. This is to cover you if the surveyor is negligent when advising, which in turn causes you a loss.
A structural surveyor carrying out a full structural report will want to access all areas of the property, to ensure it has been inspected thoroughly.
This may mean removing carpets, woodwork or even plasterboard. If you are not the owner of the property currently, you will need to make sure that you have the owner’s permission to do this. Without this, you may be asked to pay for repairing any damages caused.
Depending on what the structural survey finds, they may suggest further reports for more specialist areas. For example, if they notice issues with the damp course, they may recommend a damp specialist to visit the property and carry out a damp report.
As a full structural survey is the most in-depth type of survey available when taking a mortgage, this is the most expensive report too.
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There are different types of surveys available to you when you are buying a property.
Depending on the property’s age and condition, this will likely affect the type of survey that you end up instructing.
If you are unsure about what type of you survey want to be carried out, you should call a local surveyor that can explain the differences in more depth and discuss the property that you wish to buy.