As part of our Mortgage Basics articles, we take another look at the different kind of surveys you can have done on a property before you buy it. A home purchase will probably be the most expensive purchase you’ll ever make and you may choose to have a survey - but which one do you need - a Mortgage Valuation, Condition Report, Homebuyer’s Report or a Building Survey?
Before you buy a property a mortgage lender will require a valuation to be carried out which will confirm whether the property is worth the amount you want to borrow as a mortgage. However, following this valuation many buyers decide to have an additional, more comprehensive report carried out for their own use – to find out the condition of the building and to provide vital information which could inform their purchasing decision.
Most surveyors will provide a choice of three surveys and there are no set rules about which one you need to opt for – they are: a Condition Report, a Homebuyers Report or a Building Survey.
Here, we take a look at a basic mortgage valuation and provide information from the Royal Institute of Chartered Surveyors (RICS), describing the difference between your survey choices.
Mortgage Valuation - If you are looking to secure a mortgage on a property then the mortgage lender will require a mortgage valuation to be carried out. This valuation will confirm whether the property is worth the amount you want to pay for it and the amount that can therefore be lent as a mortgage. It is important to remember a mortgage valuation, sometimes referred to as a valuation ‘survey’, is for the benefit of the lender.
Condition Report - This report focuses solely on the condition of the property you are looking to buy. It will provide ratings to the different parts of the building and flag up any areas that may need attention.
Homebuyers Report - This report provides more detailed information and an independent valuation of the property. It also includes a more in-depth inspection of the property and provides guidance on any defects that may affect the property value.
Building Survey - This survey offers an extensive inspection of property condition. It provides detailed information about the structure and fabric of the property. It also includes information on any visible defects and potential problems caused by hidden flaws and it provides an overview of any repair options.
All three of these surveys detailed above are additional to the mortgage valuation needed to secure a mortgage and you will need to instruct relevant parties if you wish to have anything other than a mortgage valuation carried out on the property.
If you are looking to mortgage or remortgage this year contact one of our friendly team today on 0800 378 669.
When applying for a mortgage with Teachers Building Society, we are able to arrange a Homebuyers Report to be carried out alongside the mortgage valuation for an additional fee.
If you would like to apply for a mortgage, contact our friendly team on 0800 378 669 or contact us online here.
You can also request a copy of our Mortgage Guide, which is packed with useful information on the full mortgage process – here.
Read all the other article in our ‘Mortgage Basics’ series:
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE