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Different types of Property Valuations explained, plus a look at the available Mortgage help from Shire Direct...

When buying a property, you will be faced with the decision of choosing one of the three different types of property valuation reports you can instruct.

Here, we take a look at the different types of Property Valuations and which one might be best for you, and explore how we can help arrange property valuations and mortgages!

Different types of Property Valuations

When it comes to buying a property, you will be faced with a choice of three different types of property valuation reports that you can instruct. These three different valuation types are as follows:

Which type of Property Valuation Report will be best for me?

Well, perhaps the best way of establishing the most suitable property valuation report for you, is to compare the features and limitations of what each type of valuation will provide you with.

  • Basic Valuation:
    As its name suggests, this is the most basic and least expensive of the three different types of property valuation reports available to you, and it is very important to understand that the Basic Valuation is prepared for the benefit of the lender only, and not for you!

    The Basic Valuation Report merely confirms that the property is suitable for mortgage purposes, and represents adequate security for mortgage purposes. The report provides a general description of the property and its condition, together with an indication of the market valuation and insurance value.

    Remember, even though you will have paid for the Basic Valuation Report, it is for the lender's benefit only, and will not give you any form of comeback if subsequent problems and deficiencies were discovered! Generally all lenders will require a minimum of a Basic Valuation to be undertaken when purchasing or remortgaging a property.

  • Home Buyers Report:
    The Home Buyers Report is considerably more detailed than the Basic Valuation report, and its aim is to provide the potential homebuyer with details of the more major faults that are apparent at the time of inspection, especially if these are likely to have a detrimental impact on the value of the property.

    This will give the purchaser the opportunity to bring the defects to the attention of the vendor or his agent, with a view to having the deficiencies put right, or at least making an adjustment to the sale price to allow for the works.

    The Home Buyers Report will also recommend any other surveys that may be considered necessary, such as a Timber and Damp report. The survey is designed only to report on the visible areas of the property, although it will point out any major structural defects. You should check the extent of the aspects to be examined within the valuer's contractual remit, and if necessary instruct additional requirements that you may require.

    Unlike the Basic Valuation Report, the valuer acts for you. Thus it will provide you with some form of redress in the event that the surveyor is negligent in his reporting. The Home Buyers Report will also provide you with an estimate of the property's current market value, as well as raising issues that may require further investigation by your solicitor, such as property boundaries, or rights of way to, or over the property.

    Because the Home Buyers Report is much more comprehensive than the Basic Valuation Report, the cost is also higher, and will probably be in the region of £400 - £500 plus VAT for an average family home.

  • The Full Structural Survey (now known as the Building Survey:
    The Building Survey, or the Full Structural Survey as it is still often referred to, will provide you with an extremely comprehensive property report. It is designed to list all faults, both major and minor.

    The prospective purchaser will have a clear indication as to any potential problems they may be entering into, from the most trivial faults, to the structurally deficient aspects of the property. As with the Home Buyers Report, in the event the surveyor has been negligent, you have the protection of professional indemnity.

    Even though the Building Survey is the most expensive of all the three types of Property Valuation Reports, there is a school of thought that suggests that in comparison with the purchase price, the cost is well worth expending. The more common occasions for a Building Survey to be instructed is when the property is 75-years old or more, or if there have been a lot of alterations or extensions to the property.

    Because the surveyor will undertake a very thorough and detailed inspection of all parts of the property, as we have already stated, the cost of the Building Survey is the most expensive of all the three types of property survey, and is likely to be up to twice as expensive as a Home Buyers Report.

Could Shire Direct arrange all of the different Property Valuations?

Yes, absolutely!

Remember, our qualified mortgage advisors are available to discuss the options open to you. Naturally, we'll carefully assess your circumstances, needs, requirements and aspirations and we'll gladly discuss the benefits of each type of property valuation report.

We're confident that you'll find our service to be friendly, yet professional, helpful and not in the least bit stuffy! We'd of course be delighted to discuss your requirements and answer any queries that you may have. So, please don't hesitate to contact us if you would like more details as to how we may be able to assist you - obviously without obligation!

Our professionally qualified mortgage advisors are available on Freephone 08000 282 281 up until 10.00pm everyday, or you can enquire online at any time, and we'll be delighted to provide you with a rapid in-principle decision - whatever your circumstances.

Hopefully we've managed to successfully explain the three different types of property valuation reports, and how we can assist with arranging a valuation and a mortgage for you. Remember there is a wealth of useful information throughout our website, so why not take a little time out to investigate the different options that may be available, and don't forget we'd love to hear from you!

Enquire Online now, or call us today 08000 282 281 - our freephone lines are open 8am-10pm everyday! 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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