Buying a property is a considerable investment and often a huge milestone in someone’s life. These decisions can be emotionally charged, but we know all too well that often the heart doesn’t see what it doesn’t want to. This is why getting a property survey before you part with any money is essential.
But what survey should you choose? Is a mortgage valuation enough to protect your investment? Here we discuss what a mortgage valuation is and why we believe an independent survey is a must-have for any prospective buyers.
What is a mortgage valuation?
A mortgage valuation is a survey which is there to protect the mortgage lender and property buyer. This is a unique survey that the lender will do to help validate the mortgage. It is worth remembering that this is something you may have to pay for, even though you may never see what the assessment says.
In order for the mortgage provider to lend money to someone to purchase a property, they need to ensure that, should they need to repossess the property, they can get as much of their money recouped when selling the property. This therefore means that they create a loan to value ratio. What this shows is the lower that ratio, the lower the risk is to the mortgage provider.
What happens during a mortgage valuation?
When the surveyor turns up at the property they will get specific instructions from the mortgage provider, not from the property buyer or seller. They will give them a list of the requirements and the surveyor must check if the property meets them all.
When the final report is done, it will typically be just a few pages and list only the main details, the recommended valuation, and comparable evidence. It will provide a brief description of the condition of the property and does not go into intricate detail. The mortgage provider is only assessing the risk to them and not looking at how much money would be needed by the buyer on repairs. For this you will need an independent RICS surveyor like Bramptons & Son.
What is an independent survey?
You can hire a Bramptons & Son chartered surveyor to conduct a number of different types of property surveys. Your independent surveyor works for the person hiring them, often the property purchaser. One of the most popular surveys is a Homebuyers Survey.
This is for the property buyers who wants to understand what costs and repairs are needed to the property they are buying. The property will also assess how likely it is to perform in the future market. It can also be used to renegotiate a price on the purchase if major defects are discovered.
You can find out more information on a Homebuyers survey here.
What types of independent survey are available?
The independent survey tends to happen when an initial offer is accepted. It is then that we must make sure that the property you are about to purchase is a fair investment.
There are three levels of RICS home surveys.
Level 1 is a Condition Report
This checks the basic condition of the property. This is normally offered for small flats and new builds.
Level 2 is the RICS Homebuyers Report
Homebuyers surveys are designed as concise and economical surveys for modern houses that were built after the year 1970. Even if you have a home that’s brand new, there can be a series of smaller issues that can add up and lead to larger expenses down the road. For homes worth less than £1 million and built after 1970, this type of detailed report will help you secure your investment and understand any priority repairs that you may need to make to secure your investment and keep your home a safer place.
You can read our blog on Home Buyer Surveys here.
Level 3 is the Building Survey
This is the most suitable survey for older buildings or ones which have had extensive renovation. This is the most thorough report and so a worthwhile investment if you want to know everything about the property you are buying.
You can find out more about Building Surveys here.
Next Steps
It is essential to book an independent survey if you want to make an informed decision about your property investment. Your chartered property surveyor is working for you and will discuss all the results with you so that you can make a decision that best represents your budget, wants and needs.
Contact us today to book your independent survey and find out more information about how we can help your purchase your perfect property.