Harrow Weald Branch

Tel:	0208 861 4615
Fax:	0208 861 3610

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Burnt Oak Branch

Tel:	0208 200 1600
Fax:	0208 200 6663

When you buy a property, one of the requirements of the process is having a survey carried out. A survey is an inspection of a property for one of a variety of purposes. This article will explain the different types of surveys and their purposes.

The different kinds of surveys are...

• Mortgage Valuation
• Homebuyer Survey and Valuation Report(HSV)
• Structural Survey/Building Survey
• Which survey is right for me?

Mortgage Valuation
The Mortgage Valuation is an inspection carried out on behalf of the bank or building society that is considering lending the money (the mortgage) and is paid for by the buyer.

The sole purpose of the valuation is to determine the value of the property so that the lender can assess how much it may lend. A valuation is not a survey, but a very limited inspection which cannot guarantee that the property is structurally sound and without defects, nor that it is worth the agreed price.

Homebuyers Survey and Valuation (HSV)
The same surveyor undertaking the mortgage valuation can carry out this report at the same time. The advantage of this is that there is often a preferential rate for combing the two. This type of survey is primarily designed for conventional properties built within the last 150 years and that are in reasonable condition. The Homebuyers Survey is more detailed than the valuation report carried out on behalf of the bank or building society, but not as comprehensive as a full Structural Survey.

The main purpose of the report is to help the buyer assess whether the property is sound. The surveyor will inspect all parts of the property that are readily visible and accessible. The report will include the opinions of the surveyor of those matters that are urgent or significant and need action or evaluation by the client before the exchange of contracts. Significant matters may include suspected subsidence or settlement, while non-urgent matters may include the replacement of the felt on a flat roof within a short period of time.

The report is usually in a standard format and will include a valuation and a reinstatement cost for buildings insurance purposes.

Structural Survey/Building Survey
The Buildings Survey (also referred to as a Structural Survey) is the most detailed of the three reports and identifies any defects or factors which may affect the value or the saleability of the property.

The report will include a detailed description of the construction materials used as well as an assessment of all accessible elements of the property. It may also include a recommendation to seek specific professional advice on particular aspects of the property, such as the heating, wiring or other inaccessible parts of the property.

The surveyor will focus his report on the following areas of the property.

Externally:

• The roof, chimney pots and stacks, soffits and fascias, gutters and drain pipes.
• The external walls to look for evidence of settlement or subsidence.
• The windows and external timbers and endeavour to identify a damp proof course.
• The drains advising on the necessity of a drain test.
• The site, its boundaries and the trees surrounding the property.

Internally:

• The loft (providing access is available) to inspect the structure, insulation, any water installations and examine the chimney stacks for adequate support.
• The underside of ceilings to check for signs of movement indicating roof spread.
• The internal walls to look for evidence of settlement or subsidence.
• Damp test to identify areas at risk from dry or wet rot problems
• The timbers, plumbing, electrics and heating to identify areas which may require specialist inspection.

The report may culminate with a schedule of repairs that can be used to obtain quotations for any works necessary before you exchange contracts.

The Building Survey may include a valuation and a reinstatement cost for buildings insurance purposes.

Which survey is right for me?
Most people will know someone who will tell you that they did not have a surveyor inspect their flat or house and have found no major problems. Well that may be so, but there could be all sorts of hidden defects that they are unaware of which might not be immediately apparent to the untrained eye. In some instances this can result in you incurring substantial costs to remedy the problem.

It is easy to dismiss the need for an independent surveyor's report. With so many other costs stacking up when you buy a place to live in, it is one of the things that often gets pushed down the pecking order. It probably shouldn't do.

As the buyer, it is your responsibility to find out what you are committing yourself to. The seller has no liability whatsoever once the purchase is complete. Having a survey done can help minimise the risk of committing to a property that turns out to be rather less than the dream home you had hoped for. Seeking the opinion of a trained professional before you part with a vast sum of hard-earned cash is the best way to reach an informed decision about the transaction.

Surveyors are bound by law to tell you every detail of what they find. A survey will tell you exactly what work needs to be done to the building and whether there are any problems with the property you didn't know about. This can help avoid unpleasant and costly surprises after you have moved in.

Once you have received the results of the survey; you are free to reconsider your offer. You may well decide not to go ahead with a purchase if a survey turns up a major problem that you do not want to spend time and money resolving. Then again, you may be able to renegotiate the price. If the problem can be resolved for a definite sum of money, the survey can help pressure the seller into reducing the asking price.

To recap...
Make sure you fully understand what is and isn’t automatically included in the survey. Read the terms and conditions carefully, and double check with your surveyor if you are unclear about anything.

The cost will depend on the type, value, size and age of the property, and the complexity of the survey.