Mortgage valuation or home survey?

A mortgage valuation is not a survey. It is carried out for the benefit of the lender, providing only the information they need to assess whether or not the property forms suitable security for the loan.

The mortgage valuation is, therefore, limited in scope and based on a brief inspection of the property. In some instances, the valuation may be determined by an external inspection only, or even remotely, and the borrower may not receive a copy of the report.

For these reasons, purchasers are advised not to rely on a mortgage valuation to confirm whether or not the property is in good order and are recommended to instruct a home survey, which will advise them on the condition of the property enabling them to make an informed decision on the purchase. Options include the following:

The RICS Home Survey – Level 2 (survey) or (survey and valuation)

The survey will report on the general condition of the main elements of a property including roof spaces, basements and cellars, and assess the relative seriousness of the defects and problems noted. The survey and valuation option will also give an opinion on market value and an insurance reinstatement sum.

The RICS Home Survey – Level 3

This report provides more detailed information about the structural fabric and condition of the property and is particularly suited to older, larger or unusual properties and those in poor condition. They are more expensive than a Level 2 Survey.