Mortgage and Home-buyer Property Surveys

Mortgage property surveys are a main part of the home buying process

A number of different forms of property surveys exist. Your mortgage lender will expect you to conduct a basic mortgage survey in order to provide you with a mortgage loan. The different types of mortgage survey are detailed below.

Mortgage Valuation Property Surveys

Mortgage valuation is compulsory for mortgage lenders, because it confirms to them how much the property (on which they are lending money) is worth. When a borrower arranges a mortgage, the mortgage lender arranges a survey to be conducted on their behalf. This is a basic check on the value and condition of the house, to make sure it is worth the money being lent. Most mortgage lenders charge a valuation fee for this service, usually between £150 and £500. The cost goes up or down depending on the size and value of the house. Some mortgage lenders waive this fee to attract borrowers to secure loans with them.

A valuation of this type does not go into detail about the structural condition of the property, or its state and for this reason it is more suited to re-mortgages. Structural problems may go completely unnoticed, and a mortgage valuation alone, although relied on by many borrowers, is often insufficient to establish the state of a property. More extensive surveys can be required.

Home-buyer’s property surveys

Although many borrowers rely on a mortgage valuation survey, many property experts advice buyers to take out something called a home-buyer’s survey.

This type of survey is conducted to a standard form created by RICS (Royal Institute of Chartered Surveyors.) A home-buyer’s property survey does not cover wiring, drainage or gas fittings, and is generally most suitable for those properties that are under 150 years old and are already in a reasonable condition. For instance, if your property requires complete renovation or major alterations, a home-buyer’s survey may be unsuitable.

The surveyor hired by your mortgage lender will often be amenable to carrying out a homebuyer’s property survey at the same time that they carry out a mortgage survey, saving you money.

Comprehensive building survey

Building surveys are a thorough, comprehensive type of survey. They include a full structural inspection, and are suitable for all types of property. This includes older properties and properties that require complete renovation or have already been subjected to complete renovation. Usually, building surveys are carried out separately to mortgage surveys, and are a more expensive option.

How much does each survey cost?

The cost of each survey will entirely depend on the size and value of the property. Costs for a homebuyer’s survey on an average home will be between £300 and £600. Costs of a building survey can exceed £750. Depending on the location and ease of access of the property, the cost will go up and down. When it comes to a survey conducted on behalf of a mortgage lender, the cost is slightly higher than a survey using an independent surveyor.