When you are inthe process of buying a new home, you should always arrange for an inspectionof the property by a qualified surveyor even if the property has been built toa high specification and appears to be in good condition. Whilst a survey isnot a legal requirement in the UK, every conveyancer will recommend once since it can saveyou costly headaches later on such as a new roof or extensive rewiring. This isparticularly important if you are buying at the top end of your budget and willnot have a lot of money left over for expensive repairs.
But what is asurveyor actually looking for when they inspect your potential dream home? Readon to find out more about their inspection process and what a house surveyentails.
What are thetimescales for a survey?
The best timeto arrange your survey is as soon as your offer has been accepted, since thesurvey could highlight maintenance issues or costly remedial work which mayhave an impact on your offer price. Alternatively, if timescales are less of anissue and you aren’t in a chain, you may wish to ask the vendor to rectify anyissues at their own expense prior to the sale going ahead.
It is therefore a good idea to do some research into local chartered surveyors when you begin your property search to save time once you have found a property you wish to buy. You can find qualified surveyors via the Royal Institution of Chartered Surveyors (RICS) or the Residential Property Surveyors Association (RPSA), depending on which type of survey you are after (more on that below).
You should also ensure that you have the findings of the survey before you pay your deposit and exchange contracts with your vendor since at that point your offer is legally binding.
In terms of howlong it takes for a survey to be undertaken, a general rule of thumb is 1-4hours for a homebuyer’s survey (the most commonly undertaken survey) andanywhere from 3-8 hours for a full structural survey, depending on the size ofthe property. As to when the surveyor’s report will be made available to you,it will usually take around 3-5 working days to receive a homebuyer’s survey and8 working days for the more detailed structural survey report. However, it isimportant to check individual turnaround times with your preferred surveyorbefore you engage them, particularly if you have short timescales for yourhouse move, since turnaround times will depend on their current workload.
What are thedifferent types of survey?
There are 3 different types of survey: a condition report, a homebuyer report and a building survey, although they are referred to slightly differently by RICS and RPSA.
Conditionreport – A conditionreport is the most basic option when it comes to home surveys and is suitablefor fairly new, standard build properties in good condition. The report providesan overview of the property’s condition such as any risks, urgent defects orpotential legal issues such as access rights.
Homebuyer report – This is the most commonly requested survey and is generally sufficient for standard build properties which are in a reasonable condition. The homebuyer report includes all facets of the condition report plus guidance on maintenance and repairs. The report will also highlight defects that may have an impact at a later date.
Fullstructural survey – Also referred to as a building survey, afull structural survey is the most comprehensive you can get. This type ofsurvey is generally needed for larger, older properties (50 years plus) and/orthose with an unusual layout or building materials such as a timber frame orthatched roof. You would also want to undertake a full structural survey forproperties in a bad state of repair or those which have been significantlyaltered already or which you wish to make significant structural changes to.
What does asurveyor look for when inspecting a property?
What a surveyorwill look for during your house survey depends very much on the type of surveyyou request. They will focus primarily on the structural integrity of theproperty and look for maintenance issues such as subsidence, unstable walls, aleaking roof or unsafe chimney chute. They will also provide details on thetype of materials and glazing used, which is helpful when it comes to ensuringyour property.
A conditionreport will include a traffic light system for rating the condition of thebuilding and any outbuildings included with the property alongside guidance onany potential risks or areas requiring attention.
A RICS Home Survey Level 2 (formally referred to as a homebuyer report) will include the surveyor’s opinion as to whether you should go ahead with the purchase and whether the price you have offered is reasonable in light of the building’s condition plus what, if any, action needs to be undertaken before contracts are exchanged.
The surveyorwill assess the general condition of the property and highlight any majorfaults which could affect the value now and in the future. This includes anyurgent issues requiring specialist attention before contracts are signed, testingfor damp in the walls and wood damage such as dry rot or woodworm and thecondition of damp-proofing, insulation and drainage.
Although it is not a standard feature, the report can also include a market valuation. This will include an estimation of the cost to rebuild the dwelling for insurance purposes and the value on the property in terms of the open market.
The similar RPSAhome condition survey report includes a colour coded ratings system for theproperty’s condition, diagrams, photographs and a debrief with the surveyor toanswer any outstanding questions from the buyer.
A full structural survey (now referred to as a Home Survey Level 3 by RICS), will include a detailed assessment of the property’s condition, details of the construction materials and advice on defects, repairs and maintenance. This will include the estimated costs of any repairs, the detailed testing included in the homebuyer report for damp, insulation, drainage and wood damage and any recommendations for follow up inspections.
If you are unsure about which type of survey to request, your conveyancer and the surveyor themselves will be able to advise you based on the type of property you are purchasing. A survey will usually cost from £300 for a condition report up to around £1500. Again, the cost is dependent on the survey and property type. Generally, a home buyer report will cost in the region of £400 – £1000 with an extra £100 or so for the valuation if required.
In England and Wales it is the responsibility of the buyer to arrange the survey and cover the cost, whereas in Scotland the vendor must pay for the home buyer’s report pack which includes the survey, property valuation, energy report, EPC and a property questionnaire providing details on council tax and utility providers. This must all be undertaken before the property is marketed, however interested buyers are also able to arrange their own additional survey if required.
What is notincluded in the survey?
Whilst a fullstructural survey is obviously very comprehensive, it will not cover everysingle issue there may be with the property. When it comes to a particular concernthat you have, you can also ask a surveyor to undertake a defect report,whereby they focus only on that specific issue and identify any associatedrisks to you as the home buyer.
Whilst anydamp-proofing, insulation and drainage is assessed, it is important to notethat drains are not tested. A surveyor also does nottest the electrical system for a property. However, if you have concerns aboutthe condition of the electrics you can request an electrical installation condition report at a cost of around £200.
A surveyor willalso not assess any inaccessible areas of the property. For instance, they areunlikely to access the roof directly unless this has been specificallyrequested.
Your conveyancer will also need to undertake local and environmental searches as the wider issues considered by these searches are not included in the structural survey. As noted above, the survey does not automatically include a valuation of the property unless requested. Even then, your mortgage lender will still wish to undertake a separate mortgage valuation survey before they approve your mortgage.
Thedifference between a structural survey, a mortgage valuation survey and asnagging inspection.
Just as asurvey does not necessarily provide a valuation of the property, the mortgagevaluation survey undertaken by a mortgage lender will not provide detailedfeedback on the structural integrity of the property, particularly if thevaluation relies solely on online property data and a site visit has not beenundertaken. The mortgage valuation is purely concerned with whether or not theproperty is worth the money you have told your lender you wish to borrow. Thisis to ensure that they would get a return on their investment should you failto make your mortgage repayments.
For purchases of a new build property, particularly those built on a large development, a snagging inspection can also be useful. Unlike the homebuyer’s report, this will focus on issues to be raised with the developer in terms of workmanship, work which has not been completed to the agreed upon specification or any potential breaches to building regulations. It is the obligation of the developer to rectify these issues before you have moved into the property. The purchase of new build properties should also include a 6- or 10-year architect’s certificate of structural warranty so it is important to see proof of this prior to purchase.
