FTB: Spongy joists + cracking to basement walls, damp and timber survey recommended- how bad is it?

gmtx725

We have just had our level 3 survey results back on a period Victorian property. A few minor issues have been uncovered, but mostly to be expected in a property of this age. However there were a couple of things that concerned us. The surveyor has written:

We noted some sponginess present to timber joists visible within the basement. We recommend undertaking a specialist damp and timber survey to investigate. Around two of the joists we noted vertical cracking and damage to the walls. You may want to consider instructing a structural engineer to review the damage and repairs necessary to secure the structure.

How serious is this / how worried should I be? It sounds alarming but the surveyor has then given it a condition rating of 2- "defect that needs repairing but not considered to be serious or urgent." Speaking to them later today to get clarification but be good to get some other opinions as well.

Am I right in thinking that there may be some moisture in the basement that could be causing the timber joists to rot? Although the surveyor hasn't commented on damp, they have merely said the basement "is in fair condition although dated and with some areas of damage/deterioration noted".

What about the cracking? That sounds like a separate thing, and possibly more worrying, if it is a structural concern? Any advice would be really welcome I'm a clueless FTB.