You have found the house, your offer has been accepted and your lender has just told you a valuation is booked. It is easy to assume that means the property has been checked. It has not. This guide to valuation vs survey UK buyers can rely on explains what each one is, who it protects and what you are actually paying for.
A mortgage valuation is for your lender and tells you almost nothing about the condition of the house. A survey is for you. If you want to know about damp, structural movement, a failing roof or dodgy wiring before you exchange, you need a RICS survey at Level 2 or Level 3 depending on the age and state of the property. The cheapest option is rarely the cheapest outcome.
The three things people confuse
Buyers tend to lump three separate products together because all three involve someone visiting the property. They answer different questions and are written for different readers.
A mortgage valuation answers: is this property worth enough to lend against?
A survey answers: what condition is this property in, and what might it cost me?
A desktop or automated valuation answers: roughly what is this worth, based on data rather than a visit?
Only the second protects you as the buyer.
Mortgage valuation: the lender’s check
When you apply for a mortgage, the lender instructs a valuer to confirm the property is adequate security for the loan. It is often a short visit, sometimes only a desktop exercise, and the report goes to the lender. Many lenders include a basic valuation free with certain products, and others charge a fee that rises with the property value.
The valuer is looking at value, not at faults. They may note an obvious defect that affects lending, such as signs of subsidence or a non-standard construction, and they can lower the amount they will lend or attach a condition. But they will not lift floorboards, check your drains or tell you the flat roof has three years left. Never treat a “valuation passed” email as a clean bill of health.
The three RICS survey levels
RICS, the Royal Institution of Chartered Surveyors, sets out three tiers of home survey. Their names and scope are worth knowing before you ask for quotes, because a surveyor will usually ask which one you want.
Level 1: Condition Report
The lightest option. It uses a traffic-light rating of each element of the property and is intended for modern, conventional homes in good condition. It does not include advice on repairs or a valuation. It is quick and relatively cheap, but it will rarely be enough for anything older than a few decades.
Level 2: HomeBuyer Report
The most common choice. It covers the visible condition of the main structure, damp, timber defects, services and the roof, with a rating for each element and a section on issues that could affect value. Many versions include a market valuation and a reinstatement cost for insurance. It suits conventional properties built in the last century or so that look to be in reasonable order. It is the right choice for most buyers of an ordinary semi or terrace.
Level 3: Building Survey
The full structural survey. It is far more detailed, covers the building’s construction and what is hidden behind the obvious, and is written specifically for the property rather than from a template. It is the right choice for a listed or period building, anything built from unusual materials, a house that has been extended heavily or a property in poor condition. A Level 3 survey costs considerably more than a Level 2 and takes longer to arrive.
Which one do you actually need?
My view: if the house is older than about 1950, has been extended, or looks anything other than tidy and conventional, pay for the Level 3 and treat the fee as part of the purchase price. A surveyor spending a day on the building will typically find things worth more than the fee, either as negotiating leverage or as a reason to walk away. A £600 survey that finds a failing roof saves you far more than it costs.
As a rough guide:
Modern house, good condition, standard build: Level 1 may be enough, though many buyers still choose Level 2.
Typical 1930s to 1990s house, no obvious problems: Level 2.
Victorian, Edwardian or older, listed, extended, non-standard construction, or showing damp or cracks: Level 3.
Flats: a Level 2 is usually sufficient, but ask the surveyor to look at the building as a whole, and read the lease and service charge paperwork separately.
What a survey does not do
A survey is a visual inspection. The surveyor will not lift carpets, pull out fixed furniture or open up walls, and will not normally test gas, electrics or drains. They will tell you where a specialist is needed, such as a Gas Safe engineer, an NICEIC electrician or a drainage survey, and you should follow that advice up before exchange. A survey also gives you an opinion rather than a guarantee.
It is also not a legal check. Boundaries, planning history, building regulations sign-off and title issues come through your conveyancer. Our guide to documents needed to sell a house shows the paperwork a seller should be able to produce, and asking for it early makes a survey far more useful.
Using the report to negotiate
A survey report is not just a pass or fail. Treat each red or amber item as a pricing question. Get quotes for the work from local trades, put the total to the seller and ask for a price reduction, a contribution or the work done before completion. A renegotiation based on written costs from a chartered surveyor is hard for a seller to dismiss.
If the report finds something serious, such as subsidence, structural movement or major damp, ask the surveyor what further investigation they recommend before you commit. Walking away costs you the survey fee. Buying the wrong house costs far more.
Valuations once you own the house
A valuation is not only a buying tool. If you are remortgaging, your lender will usually run its own valuation, and an independent valuation can also be useful for probate, divorce or buying out a co-owner. If you plan to improve the property first, our guide to home improvements that add value shows which jobs tend to move a valuation and which do not. And if you are tied into a deal that is about to end, see our guide to remortgage options before you commit to anything.
What to do in the next 30 minutes
Check your mortgage offer or application to see exactly what valuation your lender is doing, and whether it is free.
Decide which RICS level fits the age and condition of the home you are buying.
Ring two chartered surveyors and ask for a fixed fee for that level, including when the report will arrive.
Ask your conveyancer which searches and enquiries run alongside the survey so nothing is duplicated.
Keep every report you receive in one place, because the next buyer will ask for it.
When you complete, store the report in Home+ alongside your deeds, certificates and receipts, so the evidence of what you bought and what condition it was in is still to hand when you come to sell, remortgage or claim.
FAQ
Is a mortgage valuation the same as a survey? No. A mortgage valuation is carried out for your lender to confirm the property is worth enough to lend against. It is not a condition report and will not tell you about faults in the building.
Do I have to have a survey when buying a house? No, a survey is not a legal requirement. It is strongly advised, particularly for older homes, because without one you carry the repair risk yourself.
What is the difference between a HomeBuyer Report and a Building Survey? A HomeBuyer Report (Level 2) is a standard report for conventional properties in reasonable condition. A Building Survey (Level 3) is more detailed and is suited to older, larger, altered or poorly maintained properties.
Can I use the lender’s valuation instead of paying for a survey? You can see the outcome only if the lender shares it, and it will not cover the building’s condition in any useful depth. It is not a substitute for a survey.
Can I ask the seller to pay for repairs a survey finds? Yes. You can ask for a price reduction, a contribution towards the work or for the seller to fix the issue before completion. Whether they agree depends on the market and how serious the finding is.
Should I get a survey on a new-build? A snagging inspection is usually more useful than a full survey on a new-build. Most buyers also rely on a warranty such as a 10-year structural policy.
