“If the bank is already valuing the property, why should I pay for a survey?”
It is a perfectly reasonable question, and one that many homebuyers ask.
If your mortgage lender is arranging a valuation, it is easy to assume that someone is also checking the condition of the property on your behalf. That is not what a mortgage valuation is designed to do.
A mortgage valuation and an independent RICS Home Survey have different purposes. Understanding that difference can help you avoid unexpected repair costs after you have moved into your new home.
What is a mortgage valuation?
A mortgage valuation is prepared for the mortgage lender. Its main purpose is to help the lender decide whether the property provides adequate security for the money it is proposing to lend.
Depending on the lender, the valuation may involve a brief physical inspection, a desktop assessment or an automated valuation based on available data. It is not intended to provide you with a detailed assessment of the property’s construction, condition, defects or future maintenance requirements.
Even where you pay a mortgage valuation fee, the lender remains the principal client and the valuation is prepared primarily for the lender’s benefit.
What is a RICS Home Survey?
A RICS Home Survey is commissioned by you and prepared for your benefit.
Its purpose is to help you understand the condition of the property before you become legally committed to buying it. The surveyor inspects the accessible parts of the building and reports on matters that may affect your decision, your future repair costs or the advice you should obtain before exchange of contracts.
Depending on the level of service selected, the report may identify and explain:
- significant defects and areas requiring repair;
- matters requiring further investigation;
- future maintenance liabilities;
- risks associated with the property’s age, type or method of construction;
- issues for your legal adviser to investigate; and
- the practical implications of the surveyor’s findings.
Most importantly, the report is intended to explain what the findings mean for you as the purchaser, rather than simply confirm whether the property is suitable security for a mortgage.
Mortgage Valuation vs RICS Home Survey
| Mortgage Valuation | RICS Home Survey |
| Prepared principally for the mortgage lender | Prepared for you, the purchaser |
| Assesses whether the property is suitable security for the loan | Assesses the condition of the property before you buy |
| May be based on a brief inspection, desktop assessment or automated data | Includes a visual inspection of the accessible parts appropriate to the chosen survey level |
| Not intended to provide a detailed schedule of defects | Identifies significant defects and explains their implications |
| Protects the lender’s financial interest | Helps you understand and protect your financial commitment |
| Usually provides limited practical advice to the purchaser | Provides clear, practical advice in plain English |
Why this matters
For most people, buying a home is the largest financial commitment they will ever make.
Most properties have defects. That is normal, particularly in older buildings. A survey is not about finding reasons not to buy a property. It is about helping you understand what you are buying, what may require attention and what you may need to budget for after completion.
Where important defects are identified, you may have time to obtain specialist advice, request further information, obtain repair quotations or discuss the findings with the seller before exchange of contracts. The aim is to reduce uncertainty and help you make an informed decision.
Real Survey Example
Hidden roof defect identified during a RICS Level 2 Home Survey
During a recent RICS Level 2 Home Survey, inspection of the accessible roof space identified significant wet rot affecting the end of a timber roof purlin where it was supported by the party wall.
The pattern of water staining and decay indicated that rainwater had been entering at the roof-to-party-wall junction over a prolonged period. Externally, the cement mortar weathering and flashing detail to the party wall upstand was cracked, locally missing and in poor condition.
The timber defect was concealed inside the roof space and would not have been visible during an ordinary viewing of the property. The external weathering defect was also situated at high level, where its condition and relationship with the internal decay required professional inspection and interpretation.
The purchaser was therefore able to understand the likely cause and significance of the defect and obtain specialist repair advice and quotations before becoming legally committed to the purchase.
This example illustrates the difference between confirming that a property provides suitable mortgage security and investigating its condition on behalf of the purchaser.
The photograph below is showing the defective cement mortar weathering / flashing at the party wall upstand.
Contact us with questions, for fees and to book a survey phone 0208 8669641, email hello@experthomesurvey.co.uk
