Bank funded surveys?

cosmokramer2004

Hi all,

Not sure if this belongs in this forum or the other house buying one... but am I the only one who sees the MASSIVE ethical conflict in situations where banks PAY for surveys?

I believe I am stupid beyond belief to have taken Lloyds TSB first time buyer mortgage which includes ONE free survey (whether you buy it or not). Because they use the surveyor of their choice...

I love the house I bought, it's nice, there is no problem inside or out... BUT, how do I know the survey reflects an accurate price?? and for someone who buys an expensive property with a glowing survey but internally hidden disease... what comeback do they have either against the funding bank, or the actual surveyor?

It deeply peeves me now (6 months on) that banks actually are legally allowed to payroll surveyors... there should be a legal review imho

:eek:

toonfish

you could have paid for your own if you were worried. For what it's worth, valuations are pretty arbitary anyway and by some strange quirk usually are the same as the purchase price of the property - wether they are free or paid for.

Ian_W

If the house is a pile of !!!!!! - who has most to lose, you or the bank? For most FTBers it goes something like bank = 95% - buyer = 5%. If anything a surveyor is going to undervalue and cover their backs in respect of any work that needs doing.
Of course the bank could encourage over-valuing to lend you more money but if they need to repo it they won't get their money back except from suing the surveyor if they clearly got the valuation wildly wrong.
But against that you've already agreed a price before the surveyor goes anywhere near it - it's not as if the bank sets the price - you do and I've certainly never heard of a lender saying you don't wanna pay that - you wanna pay loads a money more!

dwight-van-man

Basic surveys are done on behalf of the lender regardless of who pays for them to determine the value of the property as security. They obviously do give an indication of the condiion of the property but if you really want peace of mid, pay for a Homebuyers report or scheme 2 survey which is a lot more in depth and is done on behalf of the client.

Leon_W

Lloyds probably put it out to Countrywide or Colleys anyway as I'm not aware that they do their own valuations in house.

These co's will not risk the wrath of Lloyds for incorrect valuation so all will be above board.

There is also a difference between a "survey" and "valuation" . Banks do not pay for surveys, only valuations, so the rest of any cost would have to be met by you.

Conrad

Firstly it isnt a survey its a valuation for mortgage purposes end of. Its purely a tool for the lender to check thier money will be covered by the asset offered as security.

The valuers only concern and duty is to check the asset is suitable, and that it can be resold in the event of repossesion.

All borrowers are free to have thier own SURVEY done, but thats a totaly different animal to a valuation.

A common complaint is that the valuer down - values a property (with the aim of protecting the lender), never ever will they seek to inflate it!!