If there’s one misunderstanding we deal with daily, it’s that many mortgage applicants expect our valuer to conduct a survey when, in reality, he/she is there to carry out a mortgage valuation.
A valuation is not a survey.
The RICS – Royal Institution of Chartered Surveyors – has produced a video featuring none other than Phil Spencer that we feel articulates this message emphatically.
Conducted on behalf of mortgage lenders (bank or building society), a valuation is a non-structural inspection designed to advise lenders whether or not a property is suitable for a mortgage, based on a pre-defined set of criteria.
Mortgage lenders have different lending criteria. Some will be comfortable lending larger amounts and on a variety of property types. Other lenders will be more risk averse with far stricter criteria. Like all valuation providers, e.surv is obliged to follow a lender’s guidance and criteria.
We deal in facts and it’s up to lenders to interpret those facts. Most lenders don’t disclose the content of a valuation report to a mortgage applicant. Instead, they marry our findings with their lending criteria and, if the conditions are met, the mortgage application is approved. If not, the application is declined. It’s not a personal decision.
Just as you wouldn’t place your money in a bank you felt was unsafe, so banks and building societies won’t take unnecessary risks with theirs.
According to the RICS, home buyers who do not invest in a survey pay an average of £5,750* in unexpected repairs after purchase. That’s the cost of a new bathroom!
Our surveyors can help identify issues with the property in an easy-to-understand traffic light colour code in a detailed HomeBuyer Report.