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My wife and I are thinking about moving house. In previous moves we have carried out a study on the conditions to obtain a mortgage. But that doesn’t apply now that we don’t have mortgages.
How do we conduct a survey if it is not a requirement to obtain a mortgage and we have to have one?
These are uncharted waters for us, so I would like any advice you can give me.
Buyer beware: the last thing you want is to discover that your new home hides nightmares
Ed Magnus from This is Money responds: There is no legal obligation to organize your own survey when purchasing a property, although it may be sensible to do so.
A surveyor could well tell you about all sorts of costly problems – rising damp, subsidence, roof leaks, dry rot and asbestos to name a few.
The first thing to explain is that there are different types of survey.
It sounds as if in the past you have relied solely on the lender’s mortgage valuation.
These are required by the mortgage lender, but are not a survey and only involve a very limited inspection. Typically, the appraiser does not even enter the house, but simply walks past it or looks it up on the Internet.
The objective is to verify that the property is a suitable asset for the bank to lend money to and that the amount paid represents the market value.
Therefore, it is usually recommended that you arrange your own survey to check if there are any problems with the property.
This must be carried out by an independent chartered surveyor who is certified by the Royal Institution of Chartered Surveyors (Rics).
The type of survey you decide to complete depends on the home you are purchasing and the level of detail you think you might need.
What are the types of property study?
The cheapest and most basic survey you can get is a Rics Level 1 Home Survey, formerly known as a condition report. This usually costs between £300 and £900, according to property advice website HomeOwners Alliance.
The study will describe the condition of the property, identify risks and potential legal issues and highlight urgent defects, according to Rics. It is best suited for new or conventional homes.
The next level is the Level 2 Survey, formerly known as the Home Buyer Report. This will typically cost between £400 and £1,000, according to the HomeOwners Alliance, depending on the size of the property.
It includes all the features of the Level 1 study, but with a more extensive inspection of the roof space and drainage chamber, according to Rics.
The most comprehensive survey a buyer can choose is a Level 3 survey, also known as a structural survey.
Check it out: After accepting an offer on a property, buyers have the option of arranging an independent survey before exchanging contracts.
The cost will usually range between £630 and £1,500, depending on the size of the house.
It is recommended for older or dilapidated properties and provides an in-depth view of the condition of the property and may also include estimates of defect repair costs.
If you are planning major construction work, this could be the one.
For those purchasing a new construction home, it may also be worth considering a problem survey for when the sale is complete.
These studies check whether the property meets the standards that the builder or developer has agreed to meet and allow any imperfections to be pointed out from the beginning.
If the building is under warranty, as most new construction is, the builder will be legally obligated to correct them.
To get expert advice on the matter we spoke to Rob Dixco-founder of property advice website Property Hub and co-host of The Property Podcast, Angela Kerrcontent director of HomeOwners Alliance and Tony GambrillArea sales director at Chestertons estate agents.
Angela Kerr says having a survey is a ‘no brainer’ given the cost of buying a property
Should they do a home survey?
Angela Kerr responds: Congratulations on becoming mortgage free, that’s a real milestone.
Getting an independent expert survey on the condition of your property can detect potentially costly problems, from structural issues to minor repairs.
When you spend hundreds of thousands of pounds of your hard-earned money on a house, a survey seems like a no-brainer.
Rob Dix adds: If you don’t get a mortgage, it’s up to you whether you get a survey or not.
For very new properties it may not be worth it, but otherwise the cost, which is usually in the hundreds of pounds, is small compared to the total price you pay.
What type of survey do you need?
Rob Dix responds: Surveyors are regulated by the Royal Institution of Chartered Surveyors.
Rics offers three standard survey levels, each with a different level of detail; Of course, more detailed reports cost more.
Rob Dix Says Level 2 Survey Most Popular Among Home Buyers
The Level 2 Report, which used to be called the Home Buyer Report, is what most people are looking for.
Rics says this is suitable for most conventional properties that are not particularly old, heavily modified or in need of major works.
With this report you can only request a survey that analyzes the condition of the property and what maintenance or repairs might be necessary.
You can also add a valuation, which could give you peace of mind that the price you’re paying is reasonable, and also includes a reinstatement figure.
This estimates how much it would cost to completely rebuild the house and can be used for insurance purposes.
Angela Kerr adds: Talk to some surveyors to discuss what type of survey is best for you.
You get what you pay for: The lighter Level 1 Touch Survey grades defects with a traffic light system, while a full Level 3 Structural Survey is more thorough and goes into much more detail.
Don’t forget that you are paying for a service. Let your surveyor know beforehand if there are any problems with the house that you would like them to look at in particular.
When should they book the survey?
Angela Kerr responds: You, as the buyer, will need to organize and pay for the home survey.
You should set one up fairly quickly after the seller has accepted your offer on the house.
This shows that you are a serious buyer and also means that you will find out sooner rather than later what you are buying.
Tony Gambrill, Chestertons area sales director, says buyers should try to opt for a local surveyor.
How do you find a surveyor?
Tony Gambrill responds: Knowing which survey is most applicable to your situation will make it a little easier to select several suitable surveyors.
The surest way to find a recommended surveyor is to consult the rics website or the Homeowners Alliance Website. These allow you to review surveyors by area of expertise as well as their location.
Choosing a local surveyor can be an advantage as they should be more familiar with property prices and conditions in the area and therefore have the basic knowledge on which to base their final verdict.
What happens if the survey shows problems?
Angela Kerr responds: Once the surveyor has sent you his report, call him if you have any follow-up questions.
This may reassure you enough to proceed with the purchase. However, if the survey highlights problems or suggests that more research is needed, you may decide to hire specialists to do more research.
For example, if the surveyor suspects asbestos or woodworm, or needs to obtain detailed quotes for areas needing repair.
If this happens, you can use your survey report to renegotiate the price you are willing to pay.
Your offer is “subject to contract” and you are not legally obligated to purchase the home until the time of exchange.
It is therefore reasonable that you return to the estate agent with relevant extracts from the survey, possible repair estimates and a revised offer.
Don’t hesitate to renegotiate the price, but keep it sensible and in line with the costs of the work needed.
Rob Dix adds: Keep in mind that surveyors won’t be able to tell you everything from a visual inspection, so they may be able to point out areas for further investigation.
It can also be discouraging, because you will never get a report that says “everything is fine.”
There will always be areas of potential concern on even the most pristine property, but in our experience, most surveyors will be happy to chat with you after issuing the formal report to explain anything that particularly deserves your attention.
Tony Gambrill adds: One thing to always keep in mind when reading the surveyor’s findings is that one of the purposes of their report is to highlight any problems with the property.
Therefore, reading the survey could make buyers less enthusiastic. However, if any findings are unclear, we recommend that you follow up with the surveyor and discuss any questions you may have.
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