Why a mortgage valuation isn't a survey
Key takeaway: A mortgage valuation does not look for defects. It is carried out for your lender, to check the property is adequate security for the loan. If you want to know what condition the home you're buying is in, you need an RICS home survey.
When your mortgage offer arrives, it's natural to feel that the property has been checked. A valuer has visited, or at least looked at the details, and the lender is happy to go ahead. But a mortgage valuation does not look for defects. It answers one question for your lender: is this property worth enough to secure the loan? It isn't an inspection of the building's condition, and it isn't carried out for your benefit.
Understanding that difference before you commit to a purchase can save you from some unwelcome and expensive discoveries later.
A mortgage valuation does not look for defects
This is the most important point to take away. The valuer's job is to give the lender a figure. If there are obvious issues that affect the property's value, such as significant cracking or a roof that clearly needs replacing, the valuer may take them into account, because they matter to the lender's security.
That is not the same as inspecting the property for defects. The valuer isn't assessing each part of the building, and isn't there to tell you what needs repairing. RICS consumer guidance notes that specific defects may be accounted for in a valuation without necessarily being reported to the lender or the borrower. A clean valuation report is not a clean bill of health.
What a lender's valuation is for
A lender's valuation protects the lender. If a borrower can't keep up repayments, the lender needs to know the property could be sold to recover the debt. The valuation confirms that the property is reasonable security for the amount being lent.
RICS is clear that a mortgage valuation is for the benefit of the lender, not the home buyer. Some lenders send you a copy or an extract of the report, and you may pay a fee towards it, but it is still written for the lender's purposes.
How brief it usually is
A mortgage valuation is usually a short exercise. Where there is a visit, RICS's Find a Surveyor guidance describes it as a brief inspection, usually under 20 minutes, with a standard-format report often only two or three pages long.
In some cases there is no visit at all. Lenders may use a "desktop" valuation, based on records and comparable sales, or an automated valuation, where the property may not be seen by a surveyor.
What it doesn't check
Because a valuation isn't designed to assess condition, it generally won't give you:
a look into the roof space, or a close assessment of the roof, chimneys and gutters
an assessment of damp, condensation or timber decay
a view on whether cracks are old and stable or a sign of ongoing movement
comments on the visible condition of the electrics, heating, plumbing or drainage
advice on extensions, alterations or removed walls
guidance on repairs, maintenance or what to investigate further
Why relying on a valuation can lead to costly surprises
A property can be perfectly good security for a lender and still need significant work. If the only report you have is the valuation, you may not find out about problems until after you've moved in, when you no longer have the chance to renegotiate, ask the seller questions or get repair quotes before you commit.
As RICS puts it, there may be problems in a property that would be costly to put right but are unlikely to appear in the mortgage valuation report. That's why RICS, and most solicitors, advise buyers not to rely on a valuation alone.
What an RICS home survey adds
An RICS home survey is commissioned by you and carried out for you. It is prepared under the RICS Home Survey Standard and reports on the condition of the property, the defects the surveyor finds, and what you should do about them.
The RICS Level 3 Building Survey is the most thorough option. It gives an in-depth look at the property's construction and condition, with advice on defects, repairs and maintenance options. It is particularly well suited to older, larger or altered homes, properties in poor condition, or if you're planning work. For many buyers it is a much more detailed inspection for a relatively small extra fee, which makes it good value when you consider what is at stake.
An RICS Level 2 Home Survey (HomeBuyer) is also an option for conventional properties in reasonable condition. My Level 2 is a survey only: it reports on condition and does not include a valuation. If you have a single concern, such as a crack or a damp patch, a Specific Defect Report may be an option; get in touch to talk it through.
It's worth being clear about the limits. A survey is a visual, non-invasive inspection. Furniture, floor coverings and fixed floorboards aren't moved or lifted, so no survey can find every defect. Where something needs a closer look, the report will say so and recommend further investigation.
The Home Surveyor is RICS-regulated, and I carry out every survey myself, drawing on more than 20 years of construction and property experience. Every report, whichever survey you choose, is delivered within three working days, with photographs. If anything in it isn't clear, just get in touch.
When to book a survey
The right time is once your offer has been accepted and before you exchange contracts. At exchange you become legally committed to the purchase, so you want the survey results well before then.
Book as early as you can. There's no need to wait for the mortgage valuation, which, as above, won't tell you about condition. An early survey gives you time to raise questions through your solicitor, get quotes for any repairs, and, if needed, discuss the price with the seller.
Remember: a valuation is for your lender
A mortgage valuation does not look for defects. It tells your lender what the property is worth as security for a loan. An RICS home survey tells you about the condition of the home you're buying.
If you're buying in Essex, request a quote or call me on 01268 944 220 or 01245 922 203 to talk through which survey suits your property.
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