Valuation and Survey

Building Societies, Bank and other lending institutions normally require a valuation survey to be carried out by a qualified surveyor. This is to check that the property offers suitable security for the amount of the loan that has been requested. Most lending institutions offer three types of inspection comprising:

• A brief mortgage valuation report.
• An RICS House Buyers Report.
• A Structural survey report.

The lending institution normally instructs an independent valuer to survey the property on their behalf and usually a copy of this will be available to you, the purchaser to inspect. This valuation is part of the information required for the lender to assess whether or not they should lend money on the property. Frequently valuation reports contain details of any defects which the surveyor may have found. These may well be small things which can be quite acceptable to you, the new purchaser. However, if more major defects are found then you could come to an agreement with the vendor for repairs to be undertaken or even a reduction in the purchase price.

When all the various searches have been completed and the valuation report has been inspected the lender will underwrite the mortgage loan and prepare an offer. At this stage your legal representative will discuss various aspects of your purchase and documentation will be prepared so that exchange of contracts can take place. Everything is now ready for you to move in to your new home.

Remember, your home is at risk if you do not keep up payments on a mortgage or other loan secured on it. PIA do not regulate Mortgages and Building and Contents Insurance.