About Surveys

We are grateful to David Smith F.R.I.C.S. for having put together these very useful notes for anyone embarking on a house purchase. We are often asked about the differences between surveys and the likely costs - these notes give the answers.

Do I need a survey of the property and if so which one should I choose?

The purchase of any dwelling house is normally the largest transaction that any person makes during their life and represents a substantial investment which hopefully will increase in value substantially over a medium to long term. With this in mind it is always sensible to consider having the structure of the building checked to ensure that future difficulties do not arise, not only in connection with structural integrity and repair and condition but also in relation to future re-sale.

It is not easy to determine which survey is suitable for your property. Listed below are the three different types of survey which are available. These are:

A Mortgage Valuation

Most people will obtain a mortgage from a building society, Bank or Lending Institution and this company will undoubtedly undertake a mortgage valuation for their own purposes to establish that

• The property does exist and does have the accommodation which has been outlined in the Agent’s particulars.
• The property represents suitable security for the mortgage.
• The property is being purchased at the correct price bearing in mind current market conditions.
  

This inspection is no more than a simple visual inspection of the property by a Valuation Surveyor to determine open market value of the property as it currently stands. Any substantial structural problems would be pinpointed during this inspection but there would be no close examination of the repair and condition of the main structure.

The approval of a loan from a Bank or Building Society by the valuation Surveyor would not necessarily confirm that the property is free from defect. 

A Full Building Survey

A full building survey will be carried out by a Chartered Building Surveyor and will establish fully the exact repairing condition of the property, determine whether any structural problems have occurred previously and will provide an indication of what maintenance and improvements will be required in the future. A report of this type may or may not include tests on the main services depending on the scope of instructions provided to the Surveyor.

The conclusion in the report will list any problems which have arisen, the repairs necessary to rectify these and also an indication of the costings. It may of course be difficult to fully uncover all areas of the building particularly where the premises are currently occupied but in these cases the Surveyor will give an indication as to whether there is likely to be any expenditure required in the future and whether further investigation is recommended.

Homebuyers Report

In newer and recently constructed properties the Homebuyers Report has been created to provide an indication of the overall condition of the building without going into as much extensive detail as the full building report. Newer properties are less likely to have inherent defects of a serious nature and the Homebuyers Report is designed to give an overall picture of the building without incurring the greater fees relating to the full building report. This intermediate report will also provide a buildings insurance figure and an open market value.

It is never easy to decide which survey is suitable for the property that you are purchasing, but as a general rule it could be said that any property built prior to the 1970’s would benefit from a full building report whilst properties built after this period may well be suitable for a Homebuyers Report. Do not forget that the surveyor will be more than happy to look at specific items on your behalf and advice can also be requested in relation to the feasibility of extensions, alterations and improvements. Do not feel afraid to ring the Surveyor after you have received the report as often technical words will be used that may not be easily understood.

As far as fees are concerned, these will of course vary from property to property depending on the size, age and location. As a guideline the likely cost relating to a Full Building Survey on a three bedroom semi-detached property built around the 1930’s would be in the region of £500 plus VAT, a Homebuyers Report on a three bedroom semi-detached property built in 1980 would be approximately £350 plus VAT. It is also most important that a surveyor undertaking the work on your behalf is a member of the Royal Institution of Chartered Surveyors and also do not be afraid to ask whether suitable professional indemnity insurance is in place.

Find a property:

You can also download a pdf version of this document.

These notes have been compiled by David Smith of D J Smith and Company. David is an independent chartered surveyor and can be contacted at:

D J Smith and Company
9/11 Victoria Street
St Albans
Herts
AL1 3UB

Tel: 01727 859797
Mobile: 07768 714131
Fax: 01727 835722