You might hear property surveyors often emphasising that mortgage valuations are not surveys. This is vital information, however, it is often left unexplained.
A mortgage valuation provides the capital valuation for the lenders requirements – an in-depth survey to uncover property defects is not carried out. They are usually instructed by lenders in order to establish how much the property is worth and how safe the investment will be.
Four in five homebuyers do not get their own property survey, choosing to rely on their legal team, estate agent or mortgage advisor to assure them of the property’s financial and structural stability.
As they will be using a mortgage valuation, which does not identify all property defects, they will not have an accurate analysis of the property.
To be sure that you know exactly what you’re buying and what it might cost you, you need to get an Independent Homebuyer Report or a Building Survey. This is dependent on the age, state, and type of property.
Cost putting you off?
Consider how much your car insurance costs in comparison to how much your car is worth – and you pay that every year. The average price of a detached house in the UK is roughly £350K, and a survey will cost you around £400 – £600.
You pay a relatively high sum every year just in case you are in the unlikely situation where you need to claim – shouldn’t you be considering paying a comparatively tiny amount for your peace of mind with one of the biggest investments you can make? Especially when it can save you thousands down the road.
Buying a new home will probably be the biggest and most important investment of your life. So, for your peace of mind, let us check it for you first.