Conveyancing and Surveys by FDW Law

The usual Bank or Building Society valuation is not a full survey. The level of inspection varies between each Building Society/Bank Surveyor.

Buying a home is probably the largest investment you will ever make and we would like to ensure that you know exactly what you are buying. You should ask yourself:

1. Do you know if there are any defects to the property which may be costly to rectify?

2. Do these defects affect the price you are paying?

You have two options available to help you get these answers:

1. You could reply to the valuation made by your lender or
2. You could commission a survey. An independent survey is important as the valuation carried out by your lender is only for their benefit. It only tells your lender what they need to know to decide if the property you wish to buy is worth the money they will be lending you. You may not even get to see a copy of this valuation.

A lenders valuation may be considered adequate if you are purchasing a new-build property which is covered by NHBC. However, in most cases a lenders valuation does not provide you with protection against defects found in the property.

A survey could potentially save you thousands of pounds, as once you exchange contracts on the property you will be liable for remedying any defects. These two case studies below highlight just how important a survey can be:

‘Mr and Mrs James believed their mortgage lender’s valuation provided a survey report. After they moved in they found a leaking shower had caused dry rot in the timber floor. It cost them over £10,000 to repair.

‘The terraced house that Simon Jackson chose looked like new. Alterations and improvements had been made, including making two small living rooms into a through lounge. Luckily he chose to have a survey conducted. The survey found that a beam to support the wall above had been placed on unstable brickwork and that there was a risk of collapse. There was also a serious fire hazard from the newly boarded kitchen ceiling and walls. Still keen on the house, they obtained quotations for repairing the wall and taking the ceiling down and negotiated a £5,000 reduction in the asking price.’

To save you from facing any of these potential headaches you can commission a survey from RICS Surveyors by completing a form overleaf.

You will need to choose between two survey types:

1. An RCIS Homebuyer and Survey Valuation Report is a mid priced report that focuses on the defects and problems that are significant, urgent and affect the value. It is only suitable for properties that are built after 1900 and are conventional in type and constructions. Wiring, drainage and gas are not covered so you may require a specialist to check these for you. This is a standard written report but there is also an electronic version available called the Accredited Surveyors Home Survey Report. This report also provides a condition rating for each party of the property. Both of these reports are identical in price.
   
2. A Residential Building Survey is a far more comprehensive Survey that will examine your property from top to bottom and will look at nearly all the aspects of the property. Gas, drainage, wiring, the history and structure of the building as well as any potential future problems will be looked at. A building survey is suitable for all types of property and is particularly suited to properties that are of unusual construction, built before 1900 or have been extensively altered.

We would strongly advise you to commission a survey as soon as a firm offer has been accepted by the Seller. Survey results must be obtained before exchange of contracts as once exchange has taken place you will no longer have the right to withdraw from the purchase on the ground of a physical defect in the property.

Whichever survey type you commission the benefits to you as the buyer are likely to far out weigh the costs. Just a few hundred pounds may save you far more than the survey costs.