Property Survey

Properties that are under 2 years old are generally covered by a builder’s warranty so any property older than this needs to be properly assessed. It would be tempting not to spend the money on a property survey, particularly if the building looks sound.

Of all the expenses buying a property entails, a survey is the most beneficial cost you will incur. By alerting you (and the seller) of any latent defects, you would be able to negotiate a reduced price in order to cover the repair costs.

Types of Surveys

Mortgage Survey

If you intend to mortgage the property, your mortgage-lender will commission a surveyor to carry out a basic mortgage valuation. This is a limited check on the property to ensure that it is worth the money that you are borrowing against it. Normally you would be expected to pay a fee upwards of £150, depending on the size and purchase price of the property, although some lenders waive the fee as an incentive to secure your business.

Unless the structural problems are glaringly obvious, the surveyor is unlikely to pick them up. A majority of investors rely on the mortgage valuation alone, but the Council of Mortgage Lenders strongly advises that you get an in-depth survey done before agreeing to purchase the property.

Homebuyers Survey and Valuation (HSV, HBSV or Homebuyer Report)

The Royal Institution of Chartered Surveyors (RICS) recommends that all home buyers commission a homebuyer's survey or a comprehensive building survey.

This survey is done to a standard format set out by RICS. It’s most suitable for conventional properties built within the last 150 years that are in reasonable condition. Wiring, drainage and gas are not covered, so you may want a specialist to check these as well.

Homebuyer’s surveys are not usually suitable for properties in need of renovation, or if you’re planning major alterations. Your mortgage lender’s surveyor will normally be willing to do the mortgage valuation and the homebuyer’s survey at the same time which will save you money on the cost of commissioning both separately.

Building Survey

The most thorough report is a building survey and is a full structural inspection of a property. It is suitable for all properties, especially: listed buildings; older properties; buildings constructed in an unusual way, however old they are; properties you plan to renovate or alter in any way; and properties that have already had extensive alterations. As with the homebuyer’s survey, if the surveyor you instruct is acceptable to your mortgage lender, the cost of a separate valuation may be avoided. In practice very few of the major mortgage lenders will allow you to instruct a surveyor to carry out a mortgage valuation. It is more common to instruct a building survey separately and have a basic survey from your mortgage lender, making the building survey much more expensive compared with homebuyer's survey carried out by the mortgage lender.

Typical Survey Costs

As mentioned previously, the cost of your survey is dependent on the value of the property. For an average £150,000 to £200,000 house, a homebuyer’s survey will cost between £300 and £420, and a building survey between £560 and £730. The variations in price depend on the location and ease of access of the property, and prices for more expensive properties can seem prohibitive.

The cost of surveys instructed via a mortgage lender will include an administration fee and as such will be slightly more expensive compared to an independent surveyor. However by having a homebuyer's report from the mortgage lender the cost of a basic lenders mortgage valuation is saved as it is incorporated with in the homebuyer fee.