{"id":589,"date":"2024-05-06T14:13:57","date_gmt":"2024-05-06T13:13:57","guid":{"rendered":"https:\/\/www.rightmove.co.uk\/mortgages\/guides\/?page_id=589"},"modified":"2024-05-22T17:04:18","modified_gmt":"2024-05-22T16:04:18","slug":"lenders-valuation","status":"publish","type":"page","link":"https:\/\/www.rightmove.co.uk\/mortgages\/guides\/how-to-get-a-mortgage\/lenders-valuation\/","title":{"rendered":"What to expect from the lender\u2019s valuation"},"content":{"rendered":"\n

The lender will arrange for a qualified surveyor to inspect the property you\u2019re looking to buy, and check its value. As well as make sure that it\u2019s a property they\u2019ll lend against.<\/p>\n\n\n\n

What is a mortgage lender\u2019s valuation?<\/h2>\n\n\n\n

A lender\u2019s valuation is specific to the property you\u2019re looking to buy. It\u2019s a survey that gives the lender an independent confirmation of the property\u2019s value. It includes checking the prices of similar properties sold in the area.<\/p>\n\n\n\n

The valuation also tells the lender if there are any features or significant defects that could affect the property\u2019s value. After all, the lender is lending money against this property, so they have to be sure it meets their lending criteria and it\u2019s priced appropriately.<\/p>\n\n\n\n

Keep in mind that if the property you\u2019re looking to buy isn\u2019t the kind the lender will lend against, they might refuse your mortgage application. This might include really run down properties, or those in a high-risk flood zone, or above a shop or restaurant.<\/p>\n\n\n\n

The house buying process is slightly different in Scotland. It\u2019s the responsibility of the seller to provide a Home Report. It has three sections \u2013 a single survey and valuation, a property questionnaire and an energy report. You can learn more about Home Reports in Scotland<\/a> from the Government\u2019s website.<\/p>\n\n\n\n

What\u2019s involved?<\/h2>\n\n\n\n

The lender will instruct a surveyor of their choice to conduct the valuation, which then typically takes place within two weeks.<\/p>\n\n\n\n

Keep in mind that the valuation report is for the lender\u2019s benefit \u2013 and often only 2 to 3 pages in length. If you\u2019d like to see it you might be able to, but not all lenders will provide you with a copy. Though they might let you know if the survey flagged any serious issues.<\/p>\n\n\n\n

It\u2019s not a detailed survey and won\u2019t tell you what repairs or maintenance you might need to carry out. If that\u2019s what you\u2019d like, take a look below to find out about the other types of survey you could get.<\/p>\n\n\n\n

Who pays for it?<\/h2>\n\n\n\n

You\u2019ll have to pay the lender\u2019s valuation fee when you make your application. Some lenders don\u2019t charge for valuations, so check your Key Facts Illustration to be sure.<\/p>\n\n\n\n

Other types of surveys<\/h2>\n\n\n\n

If you\u2019d like more peace of mind when it comes to the condition of your property, then there are more in-depth surveys available. You might be able to get them done at the same time as the lender\u2019s valuation, but remember that a survey and a valuation are not the same thing. And anything you arrange will cost you extra.<\/p>\n\n\n\n

There are three key types of home surveys to be aware of:<\/h3>\n\n\n\n

HomeBuyer Report<\/h3>\n\n\n\n

A HomeBuyer Report highlights any major structural problems, like damp or subsidence, but it doesn\u2019t go beyond the floorboards or behind the walls. You\u2019ll get a report with recommendations for repairs, together with the approximate costs to fix them.<\/p>\n\n\n\n

Some HomeBuyer reports include a property valuation, The cost usually starts in the region of \u00a3400 depending on the size and value of the property.<\/p>\n\n\n\n

Building survey<\/h3>\n\n\n\n

A building survey is much more thorough than a HomeBuyer Report, and will flag internal and exterior problems. The surveyor will be much more hands on, going into the attic, checking under the eaves, if relevant, as well as under the floorboards if necessary.<\/p>\n\n\n\n

It can cost \u00a3600 or more, depending on the size, type and value of the property you\u2019re buying, and will give you a full breakdown of the structure and condition that it\u2019s in.<\/p>\n\n\n\n

People usually consider it when buying a much older or more unusual property, or perhaps one in poor condition. A building survey outlines the works you would need to carry out to address anything highlighted.<\/p>\n\n\n\n

Full building survey or full structural survey<\/h3>\n\n\n\n

This is considered the most comprehensive report available, as it provides you with an in-depth analysis of the property\u2019s condition and includes advice on defects, repairs and maintenance options.<\/p>\n\n\n\n

If a property is in poor condition, is older, larger, or had alterations, or if you\u2019re planning alterations, this survey highlights any serious issues, that could impact the value of the property.<\/p>\n\n\n\n

As you might expect, it\u2019s more expensive, and can cost from \u00a3700 upwards, depending on the surveyor and the size of the property.<\/p>\n\n\n