Costs of valuation survey (lender) and homebuyer survey (surveyor)

stevetuk

Am I right in thinking that the valuation survey costs, paid to the lender (£240 in my case) are not deducted from the cost of the homebuyer survey? I.e. I have to pay for both separately?

How much should a homebuyer survey cost? I'm quoted £563.

It means I'll be paying £800 in total, is that normal?

I ask because the surveyor began the conversation by insisting it was mandatory for me to have the Level 3 Building Survey and made out the lender had fixed the price at that. Which they hadn't.

Tiglet2

A mortgage lender will instruct a valuation survey to establish whether the property they are providing mortgage funds for is worth the amount they are lending to you. 

The lender wants to protect their investment, should they need to repossess/sell the property in the future. 

This type of survey is for the lender's use and not to be confused with any other home buyers or structural survey you wish to carry out on the property for your own peace of mind and the cost is passed to you, because you are asking them to provide a mortgage and this is part and parcel of their terms.  Whether you want this type of survey is irrelevant - the lender requires it. 

This survey may even be a desk top survey and even if the surveyor does a drive-by, they do not always enter the property.

A separate survey that you pay for and want carried out is for your own benefit, because you feel it is important that a report detailing any issues that the surveyor finds might be useful for your ongoing maintenance, once you own the property. 

It might even give you some reasons to re-negotiate the purchase price if the survey spots something potentially expensive and urgent that needs doing. 

The surveyor will look inside and outside the property, turning on taps, looking at the windows/doors - do they open/shut properly, looking in the loft at the rafters/insulation, looking for any damp, inspecting the structural integrity of the building, noting any possible structural movement and possibly looking at drains and trees in the vicinity etc etc.  They aren't experts in electrical/heating issues, but will note if all seems to be in working order or whether further reports are necessary, i.e. if the system is old. 

It is entirely optional whether you wish to have this type of survey, but think of what you might be risking or not discover until you've moved in.  For the amount you are paying to buy the property, another £500-£1000 on a structural/home buyer's survey is probably worth it, unless you are an experienced builder and have knowledge in this area.  The older the property, the structural survey (rather than the home buyer's) would be a better bet.

So, yes, the two surveys are totally different from each other and come with separate fees. and the valuation fee is not deducted from a home buyer's survey.

kingstreet

Which lender, please?

Some lenders have a fee scale for valuation, homebuyer's and chartered building survey which would apply if you decide to have the lender's chosen surveyor do your survey as well as the mortgage report and valuation.

youth_leader

My buyer's mortgage lender surveyor valued my house at £0, saying that they wanted a damp/timber survey.  I was persuaded by my EA to pay that as a gesture of goodwill, it cost me £300.

Albermarle

kingstreet said:

Which lender, please?

Some lenders have a fee scale for valuation, homebuyer's and chartered building survey which would apply if you decide to have the lender's chosen surveyor do your survey as well as the mortgage report and valuation.

I think some will offer a combined mortgage valuation and homebuyer survey, but not a Level 3.

kingstreet

Albermarle said:

kingstreet said:

Which lender, please?

Some lenders have a fee scale for valuation, homebuyer's and chartered building survey which would apply if you decide to have the lender's chosen surveyor do your survey as well as the mortgage report and valuation.

I think some will offer a combined mortgage valuation and homebuyer survey, but not a Level 3.

Nationwide, for example, for a £250,000 purchase;-

£0 mortgage report and valuation
£350 mortgage report and valuation and level two survey
£895 mortgage report and valuation and level three survey.

Some don't offer a survey option. NatWest for example offers the chance to discuss options with LGSS. As you say others will go as far as a L2 only.

stevetuk

This is YBS, and SDL Surveying.
Valuation is £240 mandatory (YBS)
Homebuyers Level 2 is £563 (SDL)
Building Level 3 is £650 (SDL)

Can I ask another surveyor to do the homebuyer or building survey or does it have to be the same one? Am I able to shop around?

janoid19

You don't have to get the survey done by the mortgage lender. Some lenders offer the option to add a survey on to the Valuation to save you the hassle of finding an independent surveyor.

We always choose our own surveyor after doing research but its up to you what you prefer.

Tracet74

A survey and a valuation are two very different things:

The valuation is purely for your lender and the surveyor will spend 20-30 minutes in the property.  They are only looking for high level defects which impact on the value, i.e. significant damp, subsidence etc.  The lender does not have to give you a copy of their report.

A survey goes into the condition of the property, is for your benefit only and should not be given to your lender.  The inspection could be 1-2 hours, depending on the type of property.

A natural conflict of interest is created when doing both with the same firm as the surveyor will only carry out one inspection, meaning they would automatically dig deeper when doing a survey and valuation at the same time.  This runs the risk of them unearthing something which would not necessarily be found doing a valuation.

Yes, you are perfectly within your rights to choose whichever firm you want for the survey but the valuation can only be carried out by a bank approved valuer.

Albermarle

The valuation is purely for your lender and the surveyor will spend 20-30 minutes in the property.

Many valuations are done from a desk/computer, or a drive by, and they never actually enter the property.