Valuations or Survey? Which One is Right for You?
Mortgage Valuation:
A mortgage valuation is the standard and minimum requirement for lenders. While it's usually the most affordable option, some mortgage products even offer it for free. The lender will provide specific instructions to the surveyor regarding the level of detail required. Here are the different types of mortgage valuations:
Desktop Valuation: This type involves the surveyor checking online resources to determine the property's value based on available data. It's a quick and efficient process, with a fast turnaround time.
Drive-By Valuation: As the name suggests, this type involves the surveyor physically driving by the property to assess its exterior condition. It is typically used when there is insufficient data for a desktop valuation. No appointment is necessary, making it convenient for the surveyor to conduct the evaluation when they have availability.
Full Mortgage Valuation: This type requires the surveyor to schedule an appointment and physically inspect the property's interior. However, the inspection is not extensive and only provides a general overview of the property's condition in comparison to others in the area. It's important to note that this type of valuation does not cover detailed assessments of electrical systems, flues, attics, and similar aspects. It primarily focuses on providing a valuation, similar to an MOT for a car, confirming its basic suitability for a mortgage. The surveyor may note obvious signs of disrepair, such as damp or cracks, but they won't actively search for such issues.
Typically, a full mortgage valuation for an average-sized property takes around 30 minutes, with the report delivered to the lender within a few days.
Home Buyers Report:
If you require a more comprehensive evaluation of the property, a Home Buyers Report is recommended. This type of survey involves an in-depth examination of the property, including a search for signs of subsidence, damp, structural issues, and other hidden problems. However, it does not involve invasive actions like checking under floorboards or inside walls.
While a valuation is usually included in the report, it's essential to confirm this with the surveyor since you may already have one from your mortgage lender. This report can be used to negotiate repairs or lower the purchase price based on identified issues. For example, if the report reveals a £4,000 cost for chimney flue repairs, you can leverage it to negotiate with the seller.
The duration of a Home Buyers Report varies, typically ranging from 90 minutes to 4 hours. Afterward, you'll have to wait to receive the comprehensive report.
Building Survey or Full Structural Survey:
For a thorough and detailed examination of the property, a Building Survey or Full Structural Survey is the most comprehensive option. This type of survey provides an expert assessment of the property, identifying repair issues and offering potential cost estimates. While it generally doesn't include a valuation, it provides valuable insights into the property's condition.
It's important to note that booking this type of survey may take longer due to the limited availability of qualified surveyors. The duration of a Building Survey or Full Structural Survey can range from 3 to 8 hours, followed by a waiting period to receive the detailed report.
In summary, understanding the different types of valuations or surveys available is essential when mortgaging a property. While a mortgage valuation is the minimum requirement, a Home Buyers Report or Building Survey can provide more comprehensive insights and help you make informed