Types of survey/report when buying property

There are basically three types of report you can have done on your property:

Valuation survey

This is a limited inspection that is carried out on behalf of your lender to ensure that the property you are buying is worth at least what they are going to lend you on it. This is not a structural survey and it will not include any areas that are not of interest to the lender. Basically they want to ensure that if you default on the loan they can recoup their investment. If you are unsure as to the structural integrity of a property (because you will be renovating) then it is not a good idea to rely on this valuation report.

This kind of survey can cost around £150 though sometimes it is included in the deal offered by the mortgage company.

Homebuyer’s Survey and Valuation report (HSV)

This type of inspection includes the valuation for the lender, and also focuses on the significant and urgent matters relating to the property (often referred to as a basic survey). It is designed to be used for properties less than 150 years old and in reasonable condition. The format is defined by the Royal Institution of Chartered Surveyors (RICS) and they can offer you detailed advice on surveys.

If an urgent issue is not noted, the purchaser has legal recourse against the surveyor and repairs can be covered by the surveyor’s insurance company.

This kind of basic survey can cost between £250 and £400 but as with every element of your investing, you should try to shop around.

Full structural survey

This is a full and in-depth inspection of the property (often referred to as a building survey) and is advisable if the property is listed, is built using unusual techniques, it in a bad state of repair or has already been extensively altered. If you have any concerns about the state of the property, then this more expensive survey is a worthwhile investment.

It is a good idea to get a quote for your survey and the prices will vary by surveyor based on the value of the property.

I managed to avoid a costly mistake by making this kind of investment. I made an offer on a property that appeared to be run down with some minor damp issues. However, I spent £800 on a full survey which revealed that the chimney was no longer supported because an upstairs chimney breast had been removed without underpinning, meaning that the chimney was starting to move. Also the original tiles had been replaced with heavier concrete types without supporting the roof structure. These two issues meant that the roof would most likely need serious work. Tree roots in the garden had also grown in the drains causing cracking meaning that these too would need to be replaced. So these two elements alone pushed the budget too far and I had to pull out. So my £800 saved me thousands!

The survey will include all major and minor defects and possible costs of rectifying them so at least you will have an idea of you possible liability before you buy the property.