Do I need a House Survey or a Mortgage Valuation?

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They are very commonly confused with one another so it’s good to know the differences between the two so you know what you’re asking for.


Mortgage Valuation

Mortgage valuations are really for the use of a lender. It is the confirmation of the property’s value to them and if a mortgage on the property would be secure. It will highlight anything that would affect the value of the property and is carried out by a professional Mortgage Valuer.

Typically, a valuation will last for about half an hour and mortgage valuers make note of everything from the number of bedrooms and bathrooms to what kind of boiler there is and how old it is.

A lot of people think that mortgage valuations provide information on all the issues with a house and what needs fixing, this isn’t always the case. While it will bring up some of the more obvious issues that will affect the value of the property, it doesn’t delve as deep into the properties attributes as what a property survey would.

House Survey

There are currently two different kinds of house surveys that you can get, both providing full information about the condition of the property, these are the RICS HomeBuyer report and a Building Survey. The RICS Homebuyer report has a clear traffic light rating system that will list the severity of problems in the house with varying degrees of attention. That means that it looks at each part of a property separately. Aspects of the property highlighted with a ‘green light’ will require no work and are safe and at the other end, a ‘red’ light will mean that serious repairs are urgently needed. It also looks at the finer details and ongoing maintenance issues that you may not be aware of and includes information on location, the local environment and provides an energy efficiency rating.

A Building Survey is the most comprehensive and detailed house survey you can possibly get. This is a more tailored service as a home buyer can specify areas that are of particular concern to them. Typically, this includes everything that a RICS Homebuyer report includes, but in far more detail, a building surveyor will check behind walls, look between the floor boards, above the ceilings and will even get into the loft/attic to do their checks.

Valuations are not usually included in a building survey, but you can request one when you first enquire.

Valuation or Survey?

Mortgage valuations are not something that you should rely on entirely to help make your decision on whether to purchase a property or not, but you will still need to get one. A mortgage lender won’t secure a mortgage against a property if it doesn’t have an up-to-date valuation, and sometimes, they will request a new valuation regardless of the age of the previous one.

Another case where you may need to get a new valuation is if you are re-mortgaging a property. This is so that they can calculate your loan to value rate which will determine the mortgage rates that are available to you.

We would highly recommend employing the services of an independent Chartered Surveyor, as they will work solely on your behalf.

One thing to keep in mind when on the lookout for a Chartered Surveyor is if they are approved by your lender. You are able to use any Chartered Surveyor you want, but if one if approved by a lender then if they provide a valuation, it is much more likely to be accepted as the mortgage valuation.

You may need to get a Chartered Surveyor for your own peace of mind, or if you notice something that doesn’t seem right upon viewing the property. Their report can highlight issues that you wouldn’t otherwise have known about, saving you money later down the line.

They are also very useful to hire to carry out a valuation and assessment of a renovation that you intend on carrying out on a property. Their assessment can shed light on if the additional building work is viable, if at all possible.

Remember, a Mortgage Valuation is for the benefit of the Mortgage Lender and a Survey is for your benefit.