Here’s how to choose the right type of survey for your needs
A house or mortgage survey is a professional assessment of a property's condition, providing detailed information about its physical state, potential defects, and any recommended repairs or maintenance needs. It's essentially a health check for your home, helping you understand its strengths and weaknesses before you commit to buying it.
While your lender will conduct a valuation, you, as the buyer, may consider commissioning a separate house survey for a deeper understanding of the property's condition. The right type of survey for your needs depends on several factors, from the property's age and condition to your risk tolerance and budget.
Do You Need a House/Mortgage Survey?
Getting a mortgage and buying a house or flat is exciting, but don't let the thrill cloud your judgement. Buying a home is a long-term commitment, so you can't afford to gamble on hidden defects.
A survey is a small investment that gives you the critical insights needed to make a confident, well-informed choice about your future home. It reveals any potential repairs needed, from electrical faults to structural issues. You won't be left with nasty surprises after moving in. With a survey report, you can negotiate with the seller to lower the price if repairs are needed.
So before committing, you need to uncover any hidden problems and make informed decisions about your purchase. And yes, it's an extra expense, but consider it an investment in avoiding much bigger costs down the road. Knowing the true cost of repairs also allows you to budget effectively and avoid financial strain.
House Survey vs. Mortgage Valuation
A valuation, typically ordered by the lender, focuses solely on the property's market value to determine the appropriate loan amount. In contrast, a house survey provides a comprehensive assessment of the property's physical condition, highlighting any potential defects, repair needs, and future maintenance costs. This information allows you to negotiate effectively, budget accurately for potential repairs, and make an informed decision about whether to proceed with the home purchase.
Dispelling Common House Survey Myths
Many people have misconceptions about house surveys. As a buyer, don't let these misconceptions hold you back.
Myth #1: The mortgage valuation is a property health check.
The bank's valuation only confirms the property's market value against your loan amount. It doesn't tell you anything about its condition.
Myth #2: Your lender arranges your survey.
If you want to know the property's true state, you need to organise and pay for your own survey. However, your solicitor or broker can help find surveyors and manage paperwork.
Myth #3: Anyone can do a survey.
This is absolutely wrong. Only chartered surveyors, usually members of the Royal Institution of Chartered Surveyors (RICS), Sava and Residential Property Surveyors Association (RPSA) can conduct official surveys.
Myth #4: There's only one type of survey.
Not quite! There are many types of surveys to cater to different needs from the age and condition of the property to costs.
Types of House Surveys
House surveys are categorised according to service providers.
Royal Institution of Chartered Surveyors (RICS) Surveys:
Level 1 Survey: Basic Valuation
This is a brief inspection and report commissioned by your mortgage lender. It's not a full survey designed for your benefit, but rather a tool for the lender to assess the property's value and ensure it's sufficient security for your loan.
It provides a limited assessment for their risk management, not a comprehensive picture of the property's condition. Remember, your due diligence as a buyer requires looking beyond this brief glance and investing in a proper survey that protects your interests and informs your decision.
What does it cover?
1. Property basics: Location, type, size, and general condition.
2. Market value: An estimate of the property's current worth.
3. Obvious defects: Major structural issues, significant damage, or potential safety hazards.
What it doesn't do:
1. It doesn't uncover hidden problems. Don't expect a detailed analysis of internal systems, potential leaks, or underlying issues.
2. It can't provide comprehensive condition assessment. It won't tell you about minor repairs, dampness, or potential problems requiring future maintenance.
3. It can't protect you as the buyer. You shouldn't rely on it as a full survey to inform your purchase decision. It's solely for the lender's benefit.
Lenders charge fees for this service, usually based on the property's value. Don't expect recourse against the surveyor if hidden problems emerge later. You might not even get a copy of the report.
Remember, it's not a substitute for a full survey. If you want a thorough understanding of the property's condition, consider commissioning a proper Homebuyer or Building Survey.
Level 2: Homebuyer's Report
The Homebuyer's Report, also known as a Level 2 Survey and Valuation, offers a more thorough examination of your potential home, specifically designed for your benefit as the buyer. This report offers crucial information to confidently decide if the property is worth the price and suits your needs.
This report is ideal for houses built in the last 80 years with regular construction methods (no timber frames or unusual features). It is also good for properties up to approximately 2,000 square feet or 185 square metres.
Note that it is more expensive than a Basic Valuation, but worth the investment for informed decision-making, since it identifies crucial issues that could impact your decision and budget.
What it covers:
1. Comprehensive inspection. All accessible parts of the property, including foundations, roof (subject to access), external walls, internal structure, joinery, plumbing, and electrical systems.
2. Major defect identifications. Detailed description of any significant structural problems, potential hazards, or urgent repair needs.
3. Market valuation. An estimate of the property's current market value, helpful for informed negotiation.
4. Limited recourse. Unlike the Basic Valuation, this report comes with some legal protection against surveyor negligence in case they miss something major.
What it doesn't do:
1. It won't delve into hidden issues requiring invasive investigations, like dampness behind walls or potential subsidence.
2. It doesn't offer renovation blueprints. Detailed repair specifications and cost estimates aren't included.
3. It's not a substitute for deep dives. If you suspect major hidden problems or have significant renovation plans, a Building Survey might be necessary.
Level 3: Building Survey
The Basic Valuation and Homebuyer's Report offer valuable glimpses, but sometimes, you need a deep dive. The Building Survey, also known as a Full Structural Survey, is the most comprehensive examination in house surveys.
It's a detailed evaluation of every aspect of the property, from its bones and structure to its internal systems and potential hidden flaws.
The Building Survey is ideal for older properties (pre-1900), large or unusual buildings with complex features or past renovations, and in situations where potential cracks, dampness, or structural concerns warrant a deep investigation.
This is the most expensive option, but the investment can save you from much larger costs down the line.
What it covers:
1. Every accessible part of the property, including foundations, roof (thorough inspection), external walls, internal structure, joinery, plumbing, electrical systems, drainage, and even potential environmental hazards.
2. Major and minor defects. A detailed breakdown of all structural issues, potential hazards, necessary repairs, and even minor problems that could affect your budget or future decisions.
3. Remedial work plan. Recommendations for addressing identified issues, including estimated costs and potential project timelines.
4. Strong legal protection. Full recourse against the surveyor in case they miss something major due to negligence.
What it doesn't do: Even the most thorough survey can't predict unforeseen events, but like the Building Survey, it can minimise the risk significantly.
Residential Property Surveyors Association (RPSA) Surveys:
Level 2: Home Condition Survey
This provides a similar level of detail and focus as its RICS counterpart, but with some unique advantages. Like the RICS Level 2, it delivers a comprehensive inspection of your potential home, highlighting major defects and offering crucial information for your purchase decision. But the RPSA version adds some extra perks.
Each RPSA survey goes through a rigorous independent review process, ensuring consistency and high standards across the board. You can be confident about the quality of the information you receive.
This survey is ideal for buyers who prefer clear explanations. If technical jargon gives you a headache, the RPSA's consumer-friendly format will be a breath of fresh air. It is also recommended for those seeking independent assurance, The rigorous quality checks provide added confidence in the survey's accuracy and reliability.
What it covers:
1. All accessible parts of the property are examined, including foundations, roof (subject to access), external walls, internal structure, joinery, plumbing, and electrical systems.
2. Detailed significant structural problems, potential hazards, and urgent repair needs.
3. An estimate of the property's current market value is also included, helpful for informed negotiation.
Building Survey
This in-depth inspection, comparable to the RICS Level 3, is the association's most comprehensive offering, catering to buyers who demand a thorough understanding of their potential home, warts and all. Every nook and cranny is meticulously examined, revealing not just the obvious flaws, but also potential underlying issues and historical construction quirks.
It is ideal for structures similar to what is covered by the RICS Level 3 survey.
What it covers:
1. All accessible parts of the property, including foundations, roof (thorough inspection), external walls, internal structure, joinery, plumbing, electrical systems, drainage, and potential environmental hazards.
2. A detailed breakdown of all defects, large and small, along with their severity and potential impact.
3. Construction knowledge dump. It includes insights into the property's construction methods, materials used, and any historical renovations or alterations.
4. Detailed recommendations for addressing identified issues, including estimated costs, repair options, and potential project timelines. It even highlights the risks of neglecting essential repairs, helping you make informed decisions about prioritising your investments.
Sava Survey:
Home Condition Survey (HCS)
This is the only survey offered by Sava. While it isn't the most in-depth option, its simplicity and clarity make it perfect for buyers who want a basic and understandable assessment of their potential home.
If you value straightforward information and prefer a concise yet informative report, Sava's HCS might be the perfect fit for your needs. Remember, any level of property inspection is better than none, and even a streamlined report can provide valuable insights to guide your journey towards a confident and informed purchase.
It is ideal for first-time buyers, those who are short on time or simply prefer a concise report, and those who are budget-conscious.
What it covers:
Key aspects that could impact your decision and budget, including:
1. Building condition defects such as cracks, structural issues, or any potential problems with the property's foundations and walls.
2. Structural movement or signs of past or ongoing movement that could indicate underlying problems.
3. Damp, rot, and woodworm. It will uncover any moisture issues or infestations that could require treatment.
4. Heating, drains, and electrical services. It will assess the state of essential systems and potential maintenance needs.
New-Build Snagging Survey
Aside from the above surveys, homebuyers can opt for the New-Build Snagging Survey. This professional assessment identifies any niggling imperfections or major flaws before you hand over the keys. A snagging survey nips these problems in the bud, giving you the leverage to get them fixed before moving in.
With this report, you have the proof to pressure the developer to fix all identified problems before completion, saving you stress and potential future expenses.
It's a must-have for anyone buying a property fresh off the developer's belt. You can invest in a stress-free move-in knowing your home has been meticulously inspected and any flaws addressed.
What it covers:
1. From minor cosmetic blemishes like chipped paint or uneven tiling to potential structural concerns with foundations or cracks, this survey scrutinises every aspect of your new build.
2. A detailed document outlining every snagged issue, with clear descriptions, photos for evidence, and recommendations for remedial action.
The Cost of a House Survey
Different service providers charge varying rates, so comparison shopping is key. Basic valuations for lenders are cost-effective (around £300), while detailed building surveys cost more (£1,000-£1,500+) due to their comprehensive nature. In addition, high-value properties generally require more intensive surveys, impacting the cost.
Too often, homebuyers make the mistake of getting a basic valuation, only to spend for another survey because the report isn't enough. Investing in a more detailed survey for complex or older properties could prevent costly surprises later.
How to Get a Home Survey
The Mortgage Hut can connect you with a panel of lender-approved home/mortgage surveyors from RICS, RPSA and Sava today.
Contact us so we can assist you with your needs right away.
Frequently Asked Questions (FAQs)
1. How long does a home/mortgage survey take?
Typically, it can last up to four hours. If the house has more issues, it could take longer. If it's a Level 3 survey, expect it to last the entire day.
2. What should I expect from a survey report?
The report will contain details about any issues with the condition of the property from minor to major problems in the structure and other aspects.
3. Can I have limited recourse using a Level 1 survey?
No. You should opt for at least a Level 2 survey instead, so you have legal protection in case of surveyor negligence.
4. Is a house/mortgage survey compulsory for UK home buyers?
No. However, it is highly recommended that you get one. It can help you save you a lot of time and money from spending on major structural fixes on your purchased property. The cost of a survey done is lower compared to risking a property purchase that you're not aware of its defects.
5. What type of survey is best for my needs?
Choosing the right survey depends on your needs and priorities. Whether you opt for the RICS, RPSA or Sava survey, you need to base your decision on the level of detail that you want in a report.
Aside from Surveys, Do You Need a Mortgage? Let The Mortgage Hut Help You
The Mortgage Hut has dedicated professionals ready to guide you in preparing what you need and what type of mortgage suits you best.
Reach out to a knowledgeable advisor today by dialling 02380 980304. You can also reach us via email at info@themortgagehut.net or secure your spot by scheduling an appointment through our contact form. You may also refer your friends to us so we can help them make the right mortgage option today.
