What is a Mortgage Valuation Survey?
A mortgage valuation survey is a survey on the property being purchased. The lender conducts the survey to determine whether the property in question is adequate security for the loan potentially given to the buyer. It is a common misconception that a mortgage valuation survey is a structural survey, however, a mortgage valuation survey only examines roughly the value of the property in regards to determine a loan amount for a mortgage payment.
The valuation survey does examine defects of the property and safety concerns that lessen the value of the home, like the home being in a high-flood-risk area or having a cracked foundation. When these kinds of risks are present, the lender may not loan against the property to preserve their money.
Who pays for the Survey?
After the survey is conducted, you will have to pay the lender's valuation fee when you submit your loan application. Some lenders do not charge for mortgage valuations, so check with your potential lenders before submitting applications.
The mortgage valuation survey is also written for the benefit of the lender and shouldn't be used to influence the buyer's decision.
RICS Building Surveys
Before you purchase a property, it is extremely beneficial to be informed about the condition of the property, and as mentioned earlier the mortgage valuation survey won't provide you with all the information you may want before purchasing a property.
We recommend that potential buyers have a home survey completed before purchasing the property. A level one survey, like a RICS Condition Report, a level two RICS HomeBuyer Report, or a level three RICS Building Survey can deepen your knowledge of the property you are considering purchasing.
A home survey provides a clear view to the condition of the property, whereas the mortgage valuation survey is for the sole benefit of the lender. The home surveyor is working for your benefit for you to learn the most information about the condition of your potential home.
A mortgage valuation survey can help empower you as a home buyer as a homeowner by expanding your knowledge of your property. Home surveys can help detect if there are going to be any major repairs needed that can be quite pricey down the line. Surveys are a great protective measure to help homebuyers find out exactly what they are getting themselves into. RICS Surveys can help you make the best decision for you and your family.
Find out more about RICS surveyors.
Explore more:
What Is a Home Condition Report?
What To Do After a Bad Survey Report
Are you looking for an Independent Chartered Surveyor in Maidstone or Kent? Follow this link to find an RICS Surveyor near you.