The importance of having a thorough survey done on your property cannot be overstated. In this video, I’m going to explain the types of valuations you can have done on your property and why it’s important to have a very, very thorough survey.
My name is Gindy, and I’m one of the senior advisers at Create Finance. So, let’s get into the article.
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Why a Survey is Important
Buying a new home is going to be the biggest financial commitment that you’ll ever make. You do not want to find any nasty surprises when you move into that property. Therefore, it’s very important that you have a thorough survey done on the property to uncover any hidden cracks.
What is a Survey?
So, what is a survey? A survey is basically a health check on the property. A surveyor will go out to the property, carry out a health check, and see if there are any defects contained within it.
Types of Surveys
There are three types of survey you could pay for when applying for a mortgage:
- Basic Valuation
- Home Buyers Report
- Full Building Survey
I’ll talk you through all the valuations and what to expect within each report.
1. Basic Valuation
The first one is the basic valuation. Mortgage lenders would typically only require a basic valuation when assessing the property to see if it’s fit for purpose for them to lend on. The basic valuation gives an overall condition of the property but wouldn’t identify too many defects. Most mortgage lenders may not charge you for a basic valuation. It is very limited in its report.
2. Home Buyers Report
You may decide to go for the second level of report, which is a home buyers report. This is more detailed than the basic valuation. You will actually get a full-page report, typically anywhere between 15 to 20 pages.
It will identify any visible issues contained within the property. You have a traffic light system: green being okay, amber meaning remedial work required, and red meaning danger and immediate attention required. It will also tell the cost to repair the property or any defect contained within it.
This can potentially allow you to go back to the seller and renegotiate the price or ask them to repair the property before you actually go through with a sale contract.
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3. Full Building Survey
The third type of evaluation is the full building survey. This is the most in-depth report available to you. You’ll get everything that’s contained within the home buyers report, plus more.
Choosing the Right Survey
If you’re unsure which survey to go with, speak to your mortgage broker or a RICS chartered surveyor. They will be able to advise on the property and tell you what report is best for you.
Costs of Surveys
There are varying costs for all three valuations. For example:
- A basic valuation may be free through your mortgage application or minimal cost.
- A home buyers report typically costs between £500 to £1,500, depending on the property value.
- A full building survey could be £1,500 plus.
| Survey Type | Typical Cost (£) | Notes |
|---|---|---|
| Basic Valuation | Free – 300 | Often included with mortgage application |
| Home Buyers Report | 500 – 1,500 | Detailed inspection, traffic light system |
| Full Building Survey | 1,500+ | Most comprehensive, for older or complex properties |
You may feel this is an unnecessary expense; however, if issues are identified within the property, it could potentially save you thousands of pounds.
Do You Really Need a Survey?
Do you really need a survey done on the property? Well, a lender will carry out a basic valuation anyway. My honest opinion is that we should be looking at a level two report, i.e., a home buyers report, for any properties older than 10–15 years.
This is purely because, if you want to save money and reduce stress, a home buyers report identifies any issues within the property. You may then choose to have a more thorough survey done. If too many issues are identified, you may even choose to walk away from the property.
Personal Example
Let me give you an example of how surveys work in your favor. A number of years ago, when I bought a property, I went with a basic valuation with the mortgage lender, thinking the property was in a good state of repair.
However, as soon as we moved in, an electrical fault developed. When the electrician came out, they identified that a full rewire was needed. Unfortunately, because I only went with a basic valuation, it didn’t pick this up at the time.
A level two report, a home buyers report, would have identified this. This cost me thousands to repair, whereas a level two report could have saved me a few thousand pounds.
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Conclusion
Having a thorough survey done on your property is essential to avoid costly surprises. It helps identify hidden defects before you commit to buying. Choosing the right type of survey can save you thousands of pounds and stress. Always consider a professional survey, especially for older properties, to protect your investment.
FAQs About Thorough Property Survey
1. Do I really need a survey?
Yes! A thorough property survey identifies hidden defects before buying. It helps you avoid costly surprises.
2. What types of surveys are there?
There are three main types: Basic Valuation, Home Buyers Report, and Full Building Survey. Each provides different levels of detail.
3. How much does a survey cost?
Costs vary depending on the type. Basic valuations can be free, Home Buyers Reports £500–£1,500, and Full Building Surveys £1,500+.
4. Can I rely on the lender’s valuation?
Lender valuations are limited and mainly for mortgage approval. They often won’t reveal all defects or issues.
5. Which survey is best for older properties?
For properties older than 10–15 years, a Home Buyers Report or Full Building Survey is recommended. It provides more detailed insight.
