Home Health Check

Purchasing a home is likely to be the largest single investment a person or family will make in their lifetime.

Most purchases obtain a mortgage to finance their new home and perhaps rely solely on this to decide if they should proceed to buy. But be warned, a mortgage valuation report is prepared for your lender to help them decide if your home is one that they wish to lend on and if it offers suitable security. Your lender is not obliged to provide you with a copy of the mortgage valuation report.

The best way to reach an informed decision on such an important investment as a home is to have a professional survey and valuation of the property by a qualified member of the Royal Institution of Chartered Surveyors (RICS). It is like a 'health check' for buildings which could save you thousands in the future. Before you decide to go ahead and commit yourself legally, you can minimise the risks by commissioning your own survey, a simple and economic way to avoid unpleasant and perhaps costly surprises after moving in. In some cases, the survey enables you to re-negotiate the price, if it reveals unexpected repairs, and sometimes even the vendors are not aware themselves of the hidden defects.

The RICS offers three types of surveys, which are specifically designed to help home owners. These are detailed as follows:-

1) RICS Homebuyers Report (HBR). This will give you information on the condition of the property and advice to your solicitor, it will raise the issues that may affect the value of your property, plus a market valuation and insurance reinstatment cost. There will also be a dedicated section to provide advice on repairs and on going maintenance problems.

The report uses the RICS red, amber and green colour coding system so as with most things in life, lots of red means be warned.

2) RICS Condition Report (C.R). The Condition Report will give you a clear and concise 'snapshot' of the condition of the property on the date of inspection. This is your report, prepared independently for you and not your lender. The lookand feel of the C.R. will be very similar to the HBR and will include:

  • A brief description of the construction and condition.
  • Condition rating of all elements.
  • Items that need further investigation, and
  • Defects or issues which may be safety hazards.

Unlike the HBR, it will not include a valuation, or an insurance reinstatement figure. This new product has been developed to offer purchasers an interim report that is more than your lender's mortgage valuation, but less than the RICS Homebuyers Report.

3) Building Survey (formally called a Structural Survey). This is suitable for all residential properties, providing a detailed report on the construction and condition. It is particularly useful if the property is dilapidated, has been extensively altered or if you are planning a major conversion or renovation.

In summary, when purchasing a property, seek independent professional advice and obtain your own survey from a qualified RICS member. Costs will vary according to which type of survey you have, but you can be assured it will be money well spent. For more information visit www.rics.org/propertysurveys.

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