Buying property can be a bit of a minefield. We recommend to all clients that they should obtain a survey report when purchasing a property. Surveys are very useful, they can highlight works that have not been advised previously and also highlight works that may be required immediately or in the future. Having full knowledge of future costs is crucial for buyers wanting to stick within their budget. Could you find £3K for damp works after moving in? Surveys can also be used as a re-negotiation tool, for example, if the roof is not up to standard and the surveyor recommends a £15K retention, you may be able to negotiate via the estate agent for a price reduction!
Types of Survey
There are different types of surveys dependant on the type of property being purchased. They range from basic surveys to full building surveys. The costs will vary depending on the surveyor instructed, so shop around. A full building survey is highly recommended when purchasing a more mature, listed, unusual, timber framed or thatched property.
If you are obtaining mortgage funding, the lender will always have a valuation report carried out against the property. This valuation is to ensure the money they are lending is the correct amount for the value of the house and sufficient security for the loan. The valuation itself may not even involve the valuer entering the property (also known as a drive-by) depending the loan to value ratio.
Mortgage valuations can also suggest or request specific reports be carried out. Although most clients are happy to proceed on the information supplied by the mortgage valuation, this will not provide full information. Clients must always remember this valuation is purely for the lenders benefit. They are looking to see if they can recover the money they are lending to you if they need to repossess. The lender will not be looking to see if the money you are investing is safe.
Pay now or potentially pay much more later
Purchasing a property is the largest amount of money most people will ever spend in one transaction. Carefully consider whether spending the money now on a survey will save you money in the long term. If you do obtain a survey send it to your solicitor as soon as you receive it.
If you need further advice regarding buying property Talk to Tollers. Our friendly residential conveyancing team are here to help. Call 01604 258558.