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Surveys – and why you should have one
Faced with the many costs involved in buying a new home, you may be tempted to cut corners by skipping a survey.
Our advice is: don’t yield to this temptation – unless, that is, the property you are buying is covered by a structural warranty. In this case, the warranty should cover any significant problems, so it is probably unnecessary to have a survey done (apart from the valuation that your lender, if you are taking out a mortgage, will want to arrange).
The case for a survey
As well as giving you peace of mind, a survey makes sound financial sense. Before committing yourself to buy, you’ll want to know that the property is in reasonable condition and constitutes a wise investment. If repairs are needed, you’ll want to have some idea of their cost.
You’ll be keen to eliminate, as far as possible, the potential for nasty – and expensive – surprises. Imagine moving into your dream home only to be confronted with structural problems that will be costly to remedy, at a time when you will have many other calls on your purse.
If these points aren’t persuasive enough, bear in mind that, if your surveyor finds a major defect, you may be able to negotiate a reduction in the asking price that will cover, or even exceed, the cost of the survey.
Surveys explained
There are three types of survey.
- Valuation for Mortgage Purposes. Commissioned by your lender, its purpose is purely to establish that the property will provide adequate security for the loan. The cost is included in the mortgage arrangement fee.
- Homebuyer Survey. This is suitable for most buildings of conventional bricks-and-mortar-type construction that are up to about 100 years old. The cost is usually between about £250 and £500.
- Building Survey (also known as a Structural Survey). This is often recommended for properties that are any of the following:
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more than 100 years old
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of unconventional construction
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seriously neglected
The cost will vary according to such factors as the size, age and condition of the property, and the degree of detail you require. Between £500 and £1,000 is usual.
Your surveyor will be able to advise on the kind of survey most suitable for the property you are purchasing. If you plan to make structural alterations, a Building Survey is probably the best option.
Choosing a surveyor
The surveyor you appoint should belong to the Royal Institution of Chartered Surveyors (RICS). See www.rics.org for details of members in different areas.
Charges vary, as do services, so shop around. Be sure you are clear about what you will be getting for your money.
The HIPs factor
Home Information Packs (HIPs), supplied by the person or organisation responsible for marketing a property, are now mandatory for all homes with three or more bedrooms. A HIP may or may not include a Home Condition Report (HCR). The HCR (containing much the same level of detail as the Homebuyer Survey) was originally intended to be a compulsory part of the HIP, but is now optional. Some predict that many sellers, wanting to avoid the additional cost, will omit it from their packs. However, as with other issues surrounding HIPs, only time will tell.
© 2007 of Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.
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