There are a lot of different survey options available if you are looking to buy a property, and of course having a variety of options means that it can be hard to know which one you need. From mortgage surveys to building surveys, each one has a different role and purpose. Many of these surveys overlap in some areas making it difficult to decide on which product is best suited to your needs.
Mortgage valuations and homebuyer surveys are two of the most commonly talked about survey options for people looking to purchase a property. So what is the difference between them, and which one best suits you?
A mortgage valuation survey is prepared mainly for the benefit of your lender. In the current property market, lenders need to be sure that their investment is safe. In order to do this, they have to ascertain whether the property you are intending to buy is actually worth the amount you wish to borrow. A mortgage valuation will give you an idea of the valuation of the property, which is vital for your lender, and very useful for you.
A homebuyer survey looks at the actual condition of the home. It views the property as something that will need to be lived in, so it considers the main areas and rates them according to their condition. Areas rated a three need to be repaired immediately, whilst areas rated one require no action to be taken. The homebuyer survey therefore allows you to assess how suitable the property actually is as a prospective home.
How much does a mortgage valuation cost?
The cost of a mortgage valuation varies. Some lenders may even cover the cost of it themselves, as a way of tempting you into taking out your mortgage with them. If not, you will have to pay for this upfront, although some lenders may allow you to add the cost of this fee to your overall mortgage balance. Each lender will have its own pricelist of valuation charges, which usually increase, with the approximate value of the property being surveyed.