A Beginners Guide to Surveys

A survey is the peace of mind you need to ensure your new home – probably the single largest purchase decision of your life – is everything you want and expect it to be, and it will probably save you time and money in both the short and the long run.

It is commonly assumed that the mortgage valuation report (MVR) includes the same elements as a survey, which is perhaps the reason why only around 20% of home buyers invest in a professional survey. However, the two should not be confused.

The MVR tells the lender whether the property is worth the loan amount, but it does not cover issues which are important to you – the buyer – the condition and necessary repairs, for example. Problems may well go unreported, to you the buyer, unless they are immediately serious enough to affect the lender’s chances of safe investment return. Importantly, the MVR also does not advise you whether the property is worth the price you are paying.

There are different types of report to consider.

A simple valuation is a specialist view on what a property is worth on the open market on the day of the inspection. It suits cases where a house’s faults are already known, or when this would be immaterial, a new house or a derelict property due to undergo renovation are examples. It may also be used in the resolution of disputes or to provide proof of value.

The two main types of survey are the homebuyer’s report and the building survey.

The Royal Institute of Chartered Surveyors homebuyer’s report is the best type of report for most home buying situations. It covers safety issues, problem areas and specific details, helping advise you whether the purchase is worth pursuing. The comprehensive and readable report includes an action plan which prioritises work as necessary or just desirable and advises which specialists should check specific issues on your behalf, for example electricians or plumbers. Legal issues are also highlighted which may require further investigation.

The survey itself takes between two to four hours and gives complete reassurance by presenting an independent and expert opinion of the present day market value of the property.

A general building survey is most suited to very large or old properties or those in locations where particular defects are common, for example subsidence or flooding. It may also be necessary for properties which have undergone extensive alteration, or which you plan to convert or renovate. This is the most lengthy, detailed and costly type of report and is available from a general practice chartered surveyor. It can take one to two days to complete and up to three weeks to receive the report.

Additional detail can be requested which the surveyor should be able to commission on your behalf. Specialist reports, for example on structure, services or drains, can be obtained although additional payment is usually required.

Specific reports can be helpful for addressing particular concerns, such as the implications of a nearby development or the effect of trees or water on your property.

Choosing the right surveyor

Make sure to choose a reputable surveyor with the following credentials and attributes:

Membership of the Royal Institute of Chartered Surveyors (RICS)
In-depth local knowledge and thorough awareness of local issues
Personal responsibility – reports are signed by the person inspecting the property
Willingness to discuss the report before and after doing the work
Professional indemnity insurance
Clear and concise written confirmation of your instructions, making clear what you can expect for your fee
Competitive fees that are clearly set out before work begins
Their reports are acceptable to lenders and they will re-address their report to your lender if needed

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