Basic Valuation question

sangupt

Hi

I'm looking to buy a property which has been recently furbished and the kitchen extended. New refurbishment includes, loft converted to bedroom with ensuite, new flooring and new electrical and plumbing and new boiler. I'm not a DIY person at all so I'm believing what the owner (who is a builder and has done the work himself) is telling me about the plumbing/electricals.

We just got the lender's basic valuation and they have expressed 'some doubts' on the quality of refurbishment and have recommended that 'all main services including central heating systemand wiring circuits thoroughly investigated by competent professionsla prior to legal commitment'.

I understand that heating/wiring is excluded even from a home buyer's survey so it's highly unlikely it being a part of basic valuation. So how come the surveyor has made this comment is a mystery to me. I've tried to ask them to elaborate but nothing has been forthcoming.

Should I get a check done myself? Should I insist on a PIR for the electrical work? Owner has shown me the gas safety certificate and buiding completion inspection report (that's what it was called I think).

Any advise would be most welcome.

Thanks

go_cat

Have you got any friends who are builders or electricians to take round?

Did you pay for a homebuyers survey or just a valuation? If homebuyers you will get a written report! If it was just a valuation you won't see a report...am a bit confused what you got.?

kingstreet

A surveyor is like a GP. He will comment on issues, but refer you to specialists for issues outside his particular knowledge.

Things like damp, wall-ties, timber, electrics, gas, roofing, structural etc will be mentioned if there is any hint of a possible problem, with the surveyor's expectation/wish that you find someone to report on the issue(s) in more detail.

That's what's happened here and that's what's normal. The same would have happened with any form of survey as surveyors aren't often qualified to comment further on the concerns they raise.

kingstreet

go_cat wrote: »

Have you got any friends who are builders or electricians to take round?

Did you pay for a homebuyers survey or just a valuation? If homebuyers you will get a written report! If it was just a valuation you won't see a report...am a bit confused what you got.?

Many lenders do supply a copy of a mortgage report and valuation to a potential borrower if there are issues requiring further investigation.

propertyman

The valuation takes into account condition, as that affects value.

However since the late 70's changes in case law have made it clear that at the very least the valuer, irrespective of the LTV, must "follow the trail" and bring matters such as this to the attention of the lender and by extension, you ( I won't bore you with the detailed guidance).

He is not obligated or perhaps able to detail the concerns in part due to the limited nature of the inspection, unless it is obvious, but in any conversion shiny new circuit boards and sockets does not mean that the hidden wiring is correct, or in one case old VIR wiring had been taped to new pvc tails. A simple socket test with a device might have failed.

What is missing from what you have posted is a certificate from the electrician that the system is completed tested and passed.If he has done it himself and is not an electrician ( ok, it not hard to get it right but very easy to get it wrong), yes insist on a report by an NICEIC or ECA electrician.

propertyman

kingstreet wrote: »

A surveyor is like a GP.

Hence once being refered to as "chartered surveyor in general practice" there are still a few around that stick to that definition.

Fire_Fox

Did the builder literally do the work himself, if so what electrician qualifications does he have, or did he have a qualified and registered electrician friend do it?

sangupt

Thanks to all ofyou for the quick replies. Like Kingstreet said, I have been sent a copy of the basic valuation done by the lender. However, the lenders themselves have not yet asked for any further reports before approving the mortgage.

Propertyman, no, I have not been shown or asked for any certificate by an electrician that the system is completed tested and passed, and thanks for the tip - I will ask for it. Is it required by law to have it, so can I actually demand to see it?

What I'm worried about is that in a 2 1/2 hr survey, they were able to find something which made them recommend a thorough check of not only the wiring but also the central heating, then how big the actual problems might be!

Owner has been living there for about a year with 3 small kids so one would assume the heating would be alright at a minimum. I have seen the property 3 times but foolishly never asked for the heating to be turned on as I implicitly trusted him ( I can see that the boiler/radiators are new)


Regards

kingstreet

The lender may not request the additional reports suggested by a surveyor.

Normally, if they are considered essential and would affect the value of the property, reports would be requested and a retention possibly suggested.

If they are in general remarks and do not affect the value of the security, the lender may ignore them as it is unlikely to be affected by such issues.

You, on the other hand, may wish to take the general remarks a little more seriously.

What I'm worried about is that in a 2 1/2 hr survey

I thought you said it was only a basic mortgage report and valuation? That would normally take 20-30 mins.

sangupt

Fire_Fox wrote: »

Did the builder literally do the work himself, if so what electrician qualifications does he have, or did he have a qualified and registered electrician friend do it?

I'm not sure - I'll have to check with him. But there is the additional comment on the central heating also. If I do get these checked, do you have any idea how much it might cost? It's a 4 bed mid terrace house.

Update: Just spoke to the estate agent and told him about these concerns and he started acting tough saying that he does not think I'm serious about buying the property and said I can do whatever I want and he won't chase me any more since no instructions have been received by the owner's solicitors. However, he did confirm that they had NICEIC electrician's report

sangupt

kingstreet wrote: »

The lender may not request the additional reports suggested by a surveyor.

Normally, if they are considered essential and would affect the value of the property, reports would be requested and a retention possibly suggested.

If they are in general remarks and do not affect the value of the security, the lender may ignore them as it is unlikely to be affected by such issues.

You, on the other hand, may wish to take the general remarks a little more seriously.


I thought you said it was only a basic mortgage report and valuation? That would normally take 20-30 mins.

Well the appointment was made for 2.5 hs so I'm assuming that it lasted that long! I wasn't present myself.