Building Survey - The most comprehensive form of mortgage survey - details and further Mortgage help available!
The Building Survey (formerly known as a Full Structural Survey) is the most comprehensive of the three types of property reports.
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Here we take a look at the Building Survey and how it compares to the other types of property reports, and offer further details as to how we can help with a mortgage or remortgage even in the trickiest of circumstances!
Table of Contents:
What is a Building Survey?
So, as we touched upon above, a Building Survey (which was previously known as a Full Structural Survey) is the most comprehensive of the three types of mortgage reports.
Whilst being the most detailed and comprehensive type of property reports, it is also the most costly of all three.
However, while the Building Survey is suitable for any building, it would generally only be considered necessary in one of the following circumstances:
- if the property is over 75 years old,
- if the property is of unusual construction, for instance a timber-framed property, or one with a thatched roof,
- if the property has already been substantially altered, or
- if you intend to alter, extend or renovate.
The Building Survey is independently carried out on behalf of the purchaser. It is an extremely detailed and thorough report, often extending to 25 pages or more. Some potential purchasers are often surprised at the length of the surveyor's list of what can appear to be a substantial number of defects. The defects listed within the report are both major and minor in nature. The surveyor also records guideline information alongside each of the defects, including the estimated cost of rectifying the faults.
Advantages and disadvantages of Building Surveys
So, are there any drawbacks to having a Building Survey done? Well, there are a couple of points that are worth bearing in mind when it comes to having a Building Survey done.
Firstly, the Building Survey will usually take several hours to carry out on site, and the report will generally take longer to prepare. The Building Survey doesn't generally include a property valuation, although this will usually be included on request.
Secondly, as stated previously, the Building Survey is the most expensive of all, and will usually cost in the region of £800 - £1000 or more, depending on the property value.
However, there are also many advantages to having a Building Survey done.
Having a Building Survey undertaken will provide you with details of all the faults both major and minor, and you'll find that you can recoup the cost of the survey on identifying just one problem - either by a price adjustment, or having the vendor fixing the fault! Similarly, if problems do arise in the future on something the valuer had missed, then you have the redress to sue for damages in negligence! So, if you are in any doubt, you should opt for a Building Survey.
What other types of property valuation/survey are available?
So just to clarify, as well as the Building Survey there are two other types of property survey which you should be aware of:
- The Basic Valuation: this is for the benefit of the mortgage lender alone, and confirms that the property will act as suitable security for mortgage purposes. The valuer gives his opinion of the market value of the property, and may recommend the lender to apply a retention to the mortgage advance in the event essential repairs need to be undertaken.
- The Home Buyers Report: this is a combined survey and valuation, and provides the potential buyer with a much more detailed report as to the state of repair of the property than a Basic Valuation will. It will alert the purchaser to major faults and essential repairs to the property that require carrying out. This gives the purchaser the opportunity to point out the reported faults, and to request they be remedied before they commit themselves to buying. Alternatively, the buyer may be able to negotiate a reduction in price.
A Building Survey may cost more, but it could prove to be the best value in the long run!
Professional advice is generally to opt for a Building Survey (or full structural survey) in all cases. The amount spent on a Building Survey, although considerably more expensive than a Basic Valuation, is usually far less than 1% of the property's worth!
Not to mention the kind of information that a Building Survey could possibly uncover, that other types of property valuation and survey wouldn't necessarily reveal, could prove to be essential in terms of either negotiating a better price from the seller, or having them fix the faults before you buy, as well as having the redress to sue the valuer for damages in negligence later on down the line!
Can Shire Direct organise a Building Survey on my behalf?
Yes, absolutely!
So, if you are thinking of buying a property, and think you would benefit from a Building Survey and would like further information on fees and other costs, please call us, and speak with one of our qualified Mortgage Advisors. You'll find our approach to be helpful and friendly.
Further Mortgage and Remortgage help available from Shire Direct
Hopefully we've managed to answer any initial questions you may have had about the Building Survey, how it works, and why it may be more valuable than other types of property report. Remember, if you are looking for a Mortgage or Remortgage why not give us a call? Our Freephone line 08000 282 281 is available seven days a week from 8am until 10pm, or if you prefer why not enquire online. We'd love to hear from you!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
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