There are 3 main types of Surveys carried out on residential properties prior to there sale or purchase.
Mortgage Valuation Report - [ More Details ]
The Valuation for mortgage purposes is a limited report made for the building societies, banks, and other lenders before a loan is made on property. It is not a survey
HomeBuyer's Survey and Valuation - [ More Details ]
The main difference between this type of report and the Mortgage Valuation is that it is instructed by house buyers for their own use and gives them a direct link with the surveyor concerned.
Building Survey - [ More Details ]
This is a very detailed report; the inspection takes several hours and may involve some limited disturbance to the building itself.
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The Valuation for mortgage purposes is a limited report made for the building societies, banks, and other lenders before a loan is made on property. It is not a survey
The report is used to guide the lenders on the value of the property for loan purposes, and is carried out for this purpose alone. Although the inspection will be carried out by a valuer who will usually be a qualified surveyor it is not a detailed inspection of the property, and only major visible defects will be noted. The surveyor will not inspect under floor areas, communal roof spaces or other parts not readily accessible. The exterior and roof of the property will be inspected from ground level only. The area of the property will be taken into account, and the rooms individually inspected, but floor coverings and furniture will not be moved and services (such as water, gas and electricity) will not be tested.
The surveyor may recommend that a part of the mortgage be retained by the lenders until such time as particular repair works are carried out This sum may not reflect the actual cost of the work. Similarly the report may suggest that the borrower should undertake to carry out certain repairs or commission more extensive investigation where hidden defects are suspected since these may have a material effect on the value of the property. It is advisable to obtain any estimates for repairs prior to submitting an offer.
Many people rely on the Mortgage Valuation Certificate in the mistaken belief that it is a detailed survey. The report is often made available to house buyers by lenders, but this does not mean that it should be relied upon as a report of the condition of the building. The report is written as a guide to the lenders alone, to enable them to decide the level of loan to be made.
A mortgage valuation is merely a valuation based on a restricted Inspection to meet the requirements of lending institutions.
THE HOME BUYER'S SURVEY AND VALUATION
The main difference between this type of report and the Mortgage Valuation is that it is instructed by house buyers for their own use and gives them a direct link with the surveyor concerned.
A standard form of report has been produced by the RICS, which can be used for houses and flats. If the surveyor considers that the standard form is not suitable, then a private report can be prepared, which allows more flexibility for the surveyor in detailing the type and condition of the property. The scope of the inspection is, however, the same.
This report contains particulars of external features such as the general condition of outside woodwork, gutters and downpipes, damp proof course and under floor ventilation. If there is not reasonable access to roof or cellar space, internally and externally, these areas will not be given a detailed inspection but this should be stated in the report. Internally, the condition of service installations, such as wiring and drainage and central heating, will also be examined, but not tested.
While providing a great deal of information, this report will still be limited by the degree of access which the seller of the house is prepared to make available, the surveyor will therefore not be able to comment on the condition of any parts of the property not readily accessible or visible. One of the most common restrictions on the survey arises from fitted floor coverings, including carpeting and hardboard. Where the surveyor considers it necessary, further investigations may be suggested which could be carried out only by removal of these coverings - for example, in looking for dry rot in floors. Once again estimates should be obtained prior to submitting an offer.
This report and valuation is likely to cost around twice as much as a mortgage valuation, but provides considerably more information on the condition of the building. Given the amount of money which is involved in buying a house, it is advisable to be well informed beforehand of its condition. House buyers are strongly recommended to consider the benefits of this type of report.
This type of survey is rarely used in Scotland, partly because of the speed at which house purchase normally takes place. The owner of the property is unlikely to allow a building survey to take place unless there is a limited market for the property and a very strong interest has been expressed by a possible buyer. It would, however, be very sensible to instruct such a report on, say, a very old or individual type of property.
This is a very detailed report; the inspection takes several hours and may involve some limited disturbance to the building itself. The surveyor will examine closely the structure and condition of the building and, in some cases, may recommend specialist reports for drainage, electrical systems, central heating and timber diseases.
Some restrictions may still exist to prevent complete inspection (Such as fitted floor coverings, limited roof access), but within these limitations the survey will be complete. In recognition of the work required for this report, the buildings survey is considerably more expensive than any other type of report. A building survey will not normally include a valuation - if one is required it should be requested at the time of the instruction.