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    • Nikster
    • By Nikster 3rd Dec 17, 8:23 PM
    • 4Posts
    • 1Thanks
    Nikster
    Cancel independent home buyers survey?
    • #1
    • 3rd Dec 17, 8:23 PM
    Cancel independent home buyers survey? 3rd Dec 17 at 8:23 PM
    Hi all

    We are in the process of purchasing a £750k 1930s four bed property just outside of London.

    We have arranged a home buyers survey with a local surveyor at a cost of £750. This is due to take place next week.

    Our lender has just contacted us to say that we could upgrade their free mortgage valuation to a home buyers survey for £300.

    Should we cancel the independent survey and save £450 or stay as we are on the basis that the impartial survey is likely to flag genuinely any potential issues with the purchase?Are we paying extra for effectively the same product?

    Apologies for our naivety and huge thanks in advance. Quick responses would be really appreciated.

    Nik
Page 1
    • Cakeguts
    • By Cakeguts 3rd Dec 17, 8:31 PM
    • 3,271 Posts
    • 4,555 Thanks
    Cakeguts
    • #2
    • 3rd Dec 17, 8:31 PM
    • #2
    • 3rd Dec 17, 8:31 PM
    You are worried about spending an extra £450 on a £750k purchase? Which is the most extensive survey?
    • Nikster
    • By Nikster 3rd Dec 17, 8:41 PM
    • 4 Posts
    • 1 Thanks
    Nikster
    • #3
    • 3rd Dec 17, 8:41 PM
    • #3
    • 3rd Dec 17, 8:41 PM
    It’s not that I’m worried about paying the extra £450. It’s whether it’s worth it for the same product. It’s impossible to tell whether one will be more extensive than the other.
    • G_M
    • By G_M 3rd Dec 17, 8:50 PM
    • 42,255 Posts
    • 49,059 Thanks
    G_M
    • #4
    • 3rd Dec 17, 8:50 PM
    • #4
    • 3rd Dec 17, 8:50 PM
    http://www.rics.org/uk/knowledge/consumer-guides/home-surveys/

    If the two surveys are genuinely like for like, then I agree - hard to see why you'd want to pay the extra.

    Lenders can ffer these surveys cheaper because their surveyor is going out to the property anyway to do the Valuaion. And/or as a mortgage 'incentive'.

    The only potential downside of upgrading the lender's Valuation is that the lender will see the survey.

    If the Homebuyers survey shows up issues (which their superficial Valuation would have missed), there is a chance they will insist on a retainer till work is doene, or even reject the mortgage application.

    Whereas an independat survey will only go to the buyer, who can make their own decisions on its conclusions.
    • Nikster
    • By Nikster 4th Dec 17, 9:09 AM
    • 4 Posts
    • 1 Thanks
    Nikster
    • #5
    • 4th Dec 17, 9:09 AM
    • #5
    • 4th Dec 17, 9:09 AM
    From experience, are home buyer surveys from lenders just as comprehensive as those from an independent surveyor? The independent surveyor that we’ve been in touch with is very open to us asking follow up questions. Don’t think we’d be able to do this with the lender’s surveyor but is that worth the £450 difference?

    Any help appreciated. Need to make a decision this morning!
    • JoJo1978
    • By JoJo1978 4th Dec 17, 9:19 AM
    • 177 Posts
    • 161 Thanks
    JoJo1978
    • #6
    • 4th Dec 17, 9:19 AM
    • #6
    • 4th Dec 17, 9:19 AM
    I'm playing devils advocate here: say the bank values the property at less than £750k. You then need to make a decision on how to proceed - walk away, find another lender, drop your offer etc.

    Would you feel comfortable doing that on the basis of a survey report that the current lender commissioned? Or a survey that you had paid for? An extra £450 for an asset potentially worth £0.75m is a drop in the ocean imo.
    Hamster in the wheel (London) 1999-2017
    Mortgage free since 2015; Pension pot sorted 2017
    Second career (what TBD!) 2018
    • Wobblydeb
    • By Wobblydeb 4th Dec 17, 10:39 AM
    • 896 Posts
    • 1,399 Thanks
    Wobblydeb
    • #7
    • 4th Dec 17, 10:39 AM
    • #7
    • 4th Dec 17, 10:39 AM
    We went for independent survey this time despite it costing more.

    Last time around, we had full structural surveys on two different properties by two different surveyors - both appointed by the bank. One was great (Countrywide) and one was rubbish (Wisemove). I had literally no negotiating power with the rubbish one as he had already been paid via the bank The best I could do was ask for additional comments and copy in the bank's customer services. He was not very happy at being pulled up on the standard of the survey or forthcoming in his response.

    This time around I picked someone local with a (good) reputation to protect and who I paid directly.
    I've got a plan so cunning you could put a tail on it and call it a weasel.
    • westernpromise
    • By westernpromise 4th Dec 17, 11:17 AM
    • 3,269 Posts
    • 4,052 Thanks
    westernpromise
    • #8
    • 4th Dec 17, 11:17 AM
    • #8
    • 4th Dec 17, 11:17 AM
    Surveyors aren't the sharpest tools in the shed. If they were, they'd be estate agents.
    The Lottery, with its weekly pay-out of enormous prizes, was the one public event to which the proles paid serious attention. It was probable that there were some millions of proles for whom the Lottery was the principal if not the only reason for remaining alive. -
    George Orwell, Nineteen-Eighty-Four
    • Nikster
    • By Nikster 4th Dec 17, 4:49 PM
    • 4 Posts
    • 1 Thanks
    Nikster
    • #9
    • 4th Dec 17, 4:49 PM
    • #9
    • 4th Dec 17, 4:49 PM
    Thanks everyone. We’ve decided to go with the independent survey. Hopefully it won’t throw up any horrors! Thanks again for the advice.
    • ThePants999
    • By ThePants999 4th Dec 17, 5:17 PM
    • 900 Posts
    • 1,054 Thanks
    ThePants999
    The only potential downside of upgrading the lender's Valuation is that the lender will see the survey.
    Originally posted by G_M
    FWIW, the last time I did it this way, the lender didn't see the survey. The surveyor did a valuation which they sent to us and the mortgage company, and a survey which they sent only to us.
    • ThePants999
    • By ThePants999 4th Dec 17, 6:03 PM
    • 900 Posts
    • 1,054 Thanks
    ThePants999
    I'm playing devils advocate here: say the bank values the property at less than £750k. You then need to make a decision on how to proceed - walk away, find another lender, drop your offer etc.

    Would you feel comfortable doing that on the basis of a survey report that the current lender commissioned? Or a survey that you had paid for?
    Originally posted by JoJo1978
    The lender doesn't commission it, though. They commission a valuation, and they give you the opportunity to commission a survey at the same time. Furthermore, your interests are well aligned. This isn't like using the estate agent's recommendation, where their interests are vastly different to yours - the bank want to be certain that the house is good, and you want to be certain that the house is good. The only divergence is that the bank will often be more risk averse - but the surveyor will highlight anything they'll care about whether you pay for an extra report or not.

    An extra £450 for an asset potentially worth £0.75m is a drop in the ocean imo.
    Originally posted by JoJo1978
    I'm sorry, but this frustrates me. I see this so often on this forum - comparing the price of some good or service to the price of the house, and highlighting that the former is a tiny fraction of the latter, in order to (presumably) make a point that it's not worth worrying about, or that it's justified because it could save so much more than it costs.

    Sometimes, that's true. If there's some question over the title, for example, and someone's considering skimping on the legal work to investigate it, it's well worth highlighting that it's a false saving because they're putting hundreds of thousands at risk to save hundreds. Or if someone really needs to exchange quickly, but their buyer is insisting they get some thirty quid indemnity policy that's really completely pointless, it's worth highlighting that the peace of mind is probably well worth the thirty quid no matter how worthless the policy is.

    Often, though, the argument is simply "X is a fraction of Y, so don't worry about X", whatever X actually is. Yes, this is a drop in the ocean compared to the house price. But (a) there are LOADS of these "drops", and between them all they really add up. And (b) a waste of money is a waste of money, no matter how little money. (And £450 is a lot of money, regardless of how it compares to an asset that you'll be paying off for half your adulthood!) This site is about money saving, and if you look at the site's articles etc, it's all very "take care of the pennies and the pounds take care of themselves". The same is true of most of the other subforums. It's only when you come into House Buying that you see people going "who cares about hundreds when you're spending thousands!".
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