What is a mortgage survey?

RICS Survey types v mortgage survey

What is a mortgage survey?

When buying a property with a mortgage, most providers will require that you undertake a mortgage survey before lending is approved. The sole aim of this survey is to satisfy the lender that the property you are purchasing has enough value to cover the amount they are lending you.

The surveyor will briefly inspect the property (usually lasting less than 20 minutes) and will collate their findings with information about local, comparable properties. Sometimes a reinstatement value is also calculated which is later used as part of your building insurance.

Whose benefit is the valuation for?

A mortgage valuation survey is for the benefit of the mortgage lender and in some cases the home buyer may not even receive a copy of the report. It is to help the mortgage provider make an informed decision before agreeing to lend funds. The report is concise and will only highlight major, obvious defects, which could have a significant effect of the property value which could therefore affect it as security for the proposed loan.

How can I make a more informed decision?

To make a fully informed decision before buying a property, we highly recommend that you commission an independent RICS building survey. According to RICS (Royal Institute Of  Chartered Surveyors), only 20% of home buyers undertake some form of independent survey before purchasing, despite it being the largest investment many people will make in their lifetimes. Quite a shocking figure on it’s own but when you consider that we spend just a few hours looking around a potential new home before making an offer, the importance of seeking professional advice on the property’s condition is even more critical to safeguard you from any nasty and potentially expensive shocks once you move in.

If a prospective buyer is only interest in determining a property value, then we advise on getting a RICS Valuation Report, which will give a more substantiated market value than a mortgage survey. There are also three levels of home survey which will report on a property’s condition, these are: Level 1 RICS Condition Report, a Level 2 RICS HomeBuyer Report or a Level 3 RICS Building Survey.  The latter Level 3 report is the most detailed and the only survey we at Chawton Hill carry out.

If you would like a quote for your next dream home, please complete our Quick Quote form & one of the team will be back in touch straightaway.

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