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REPORT MATCH

Buying a home is one of the most expensive purchases you'll ever make.  You'll need to know as much as you can about the property before you buy, so having a survey makes good sense - and could save thousands in costly repair bills later.  Which?, the Building Societies Association and the Council of Mortgage Lenders advise buyers to get a survey rather than relying on a valuation.  Here we explain the different services available from Gateway our Panel Managers.

VALUATION
Also known as: lender's valuation, lender's report; mortgage valuation
Type of Property: All
  
Type of Service: limited assessment for the lender.

Reason for Service:  to assess the property's value as security for the proposed loan - not intended to identify defects unless they severely affect value.  To advise the lender, not the purchaser.

For awareness:  The property may not always be visited.  Mortgage lenders may charge the prospective borrower an application fee significantly higher than the valuation cost, or may include such charges in the overall cost of the loan.  RICS research shows a quarter of all homebuyers who only had a mortgage valuation report had to undertake unplanned repairs or building works to their property after purchase.

Report format:  Lenders ususally present the data on their own standard forms, and provide a courtesy copy to the borrower.

RICS HOME CONDITION REPORT

Type of property: conventional house or flat built from common building materials and in reasonable condition.

Type of service: focuses purely on the condition of the property by setting out the following:
* Clear "traffic light" ratings of the condition of different parts of the building, services, garage and outbuildings, showing problems that require varying degrees of attention.
* A summary of the risks to the condition of the building.
 * Highlights areas where guarantees, warranties, planning and other consents need to be investigated by your legal advisers.

For awareness:  enables a purchaser to allow for essential works, and seek further advice where necessary.  Potentially allows purchasers to negotiate a better deal with the seller.  Sellers can also use the report to prevent unforeseen issues cropping up in lender/buyer valuations and surveys.

Valuation included: Does not automatically include a valuation; this may be provided as a separate extra service. 

Report format:  uses standardised RICS report with clear traffic light ratings system.

RICS HOMEBUYER REPORT (HBR)

Type of Property: conventional property in reasonable condition.

Type of service:  provides all of the features in the Home Condition Report, plus:
* The surveyor’s professional opinion on the market value
* An insurance reinstatement figure for the property
* Details of significant problems that the surveyor considers may affect the value of the property
* Advice on repairs and ongoing maintenance issues that need to be investigated to prevent serious damages or dangerous conditions
* Legal issues that need to be addressed before completing the purchase
* Information on location, local environment and the recorded energy efficiency (where available)

Reason for service: to help you make an informed judgement on whether to buy a property.  To work out if the property is a reasonable price.  To be clear on the decisions and actions that need to be taken before contracts are exchanged.

For awareness: the HBR can benefit sellers – if commissioned before the property is put on the market, it may alert owners to problems that could later hold up the sale.  Potentially allows purchasers to negotiate a better deal with the seller.

Valuation included: yes

Report format: uses standardised RICS report with clear traffic light rating system.

BUILDING SURVEY
Also known as: structural survey

Type of property:   suitable for all buildings, but in particular for listed buildings; large, older or rundown properties; unusual or altered buildings; or if you are planning major works.

Type of services: gives detailed information on the structure and fabric of the property, and includes:
* A thorough inspection and detailed report on all aspects of the condition of the property
* A description of visible defects and potential problems caused by hidden flaws.
* An outline of repair options and the likely consequences of inactivity
* Advise for your legal advisers and details of serious risks and dangerous conditions

Reason for service: If you want a detailed inspection and report of its structure, fabric and condition, especially if you are planning major structural alterations.

Other features: aims to establish how the property is built, what materials are used and how these will perform in the future.

For awareness:  The most detailed and comprehensive report available, and can be tailored to suit the purchaser’s needs.  Potentially allows purchasers to negotiate a better deal with the seller.

Valuation included:  does not automatically include a valuation; this may be provide as a separate extra service.

Report format: tailored to the client’s requirements, usually based on the surveyor’s standard format.


VALUATION  FEE  SCALE

(effective : April 2011)


Purchase Price /
Estimated Value

Mortgage Valuation

Combined RICS Condition Report and Mortgage Valuation

Combined RICS Homebuyer’s Survey and Mortgage Valuation

Up to £75,000
£100,000
£150,000
£200,000
£250,000
£300,000
£350,000
£400,000
£450,000
£500,000
£600,000
£700,000
£800,000
£900,000
£1,000,000
£1,200,000
£1,400,000
£1,600,000
£1,800,000
£2,000,000
Over £2,000,000

£130
£150
£190
£215
£240
£270
£295
£330
£360
£390
£450
£530
£640
£720
£790
£830
£995
£1,095
£1,195
£1,270
by negotiation

£220
£250
£280
£330
£380
£430
£480
£530
£580
£630
£720
£810
£900
£990
£1,080
£1,260
£1,440
£1,620
£1,800
£1,980
by negotiation

£305
£335
£370
£420
£485
£535
£585
£630
£695
£735
£820
£970
£1,075
£1,175
£1,280
£1,485
£1,685
£1,890
£2,095
£2,300
by negotiation