Types of Survey
Valuations and surveys not only give you peace of mind that what you are paying is correct, but it will also give the lender confidence as well. A lender will need to have the property used as security valued to protect themselves from negative equity and to make sure that their mortgage is secure.
The borrower is usually expected to pay this upfront, when the application is submitted. Asking the surveyor to carry out your personal survey at the same time as the lender valuation can save you money, and guarantee you peace of mind about the value of the property.
There are three types of survey:
Basic valuation – This is commissioned by the lender simply to ensure that there will be suitable security to cover the mortgage loan. Any major defects will usually be picked up.
Homebuyer’s report – This is a much more thorough survey and often the cost would include the completion of the lender’s basic valuation form.
Building or structural survey – This is the most detailed survey and is the most expensive.
Once the lender is satisfied with the result of the survey and your personal circumstances, they will issue a formal offer of mortgage. Your solicitor will then agree to exchange contracts.