Surveyor
The next step in purchasing a new home is to arrange for a surveyor to carry out a survey of the property. A survey confirms whether or not a property is structurally sound and whether it is a good investment.
Personal recommendations are a good way of choosing a surveyor. Ask any friends, family or colleagues who have recently bought a home whether they can recommend someone. Your solicitor or mortgage provider may also be able to advise you on the choice of surveyor. Or you can search the Royal Institution of Chartered Surveyors website for a list of qualified surveyors in your area.
The cost of a survey will depend on the type of survey you commission and on the size and condition of the property. So consider getting a few quotes before agreeing a price with your chosen surveyor.
Which Survey?
There are three types of survey:
- Valuation Report - Mortgage providers typically insist on a valuation report before they will agree to lend you the money as it confirms that the property is sufficient security for the loan. It will typically cost you around £100. If your home is still under construction, the mortgage provider will do some preliminary checks on the builder and development. Typically, they will release the mortgage in stages, handing over the final tranche once the home is finished and a valuation can be done.
- Homebuyer's Report - This provides information about the basic fabric of a property and typically costs around £250. The report will only cover those parts of the property that are readily available and will comment on defects or problems that may affect the value of the home.
- Full Structural Survey - This is a more comprehensive survey of the property's constructions and condition than a Homebuyer's Report. It is also likely to cost twice as much. It will provide detailed information on how the property has been constructed, the materials used, the condition of the foundations, roof, walls etc. It is recommended for properties that are very old, run down or expensive.
Confirm in writing which type of survey you'd like to commission and pass on details of the property and area to your surveyor. New homes often come with a guarantee such as Buildmark which means it is insured against any major defects resulting from the builder's failure to comply with the guarantor's requirements. However, if your new home does not come with a warranty, or you'd like the peace of mind that a structural survey brings, you could decide to commission a Homebuyer's report. If you are buying a very expensive home, it may be worth your while to arrange for a full structural survey.