Mortgage lenders normally require a valuation before approving a mortgage, but this is not the same as an independent property survey.
A lender’s valuation is primarily carried out for the lender’s benefit. A property survey is arranged for the buyer and provides more information about the visible condition of the home.
Do mortgage lenders require a survey?
A mortgage lender usually requires some form of valuation to establish whether the property provides suitable security for the loan.
The lender does not generally require the buyer to commission a full Level 2 or Level 3 survey. However, arranging an independent survey can be a sensible way to protect your own interests.
What is a mortgage valuation?
A mortgage valuation is a limited assessment used to help the lender decide whether the property is worth enough to support the proposed mortgage.
It is not intended to provide the buyer with a comprehensive report on defects, repairs or maintenance requirements. Depending on the lender and property, the valuation may be completed remotely or through a relatively brief inspection.
What is an independent property survey?
A survey is commissioned by the buyer to assess visible and accessible areas of the building. It can identify defects, condition concerns and areas where further investigation may be appropriate.
The most common choices are:
What is the difference between a valuation and a survey?
- A valuation is primarily for the mortgage lender.
- A survey is commissioned for the buyer.
- A valuation focuses on the property as security for the loan.
- A survey focuses on visible condition and defects.
- A valuation may contain limited detail.
- A survey provides practical information to help the buyer decide whether to proceed.
Why arrange a survey when the lender has already valued the property?
The lender’s valuation may not identify or explain defects that could cost you money after completion.
An independent survey can highlight matters such as roof defects, visible dampness, cracking, poor ventilation, deteriorated external finishes and maintenance liabilities.
Our guide to common property survey problems provides examples of issues that can be uncovered during an inspection.
Should first-time buyers get a survey?
First-time buyers may particularly benefit from an independent survey because they may have less experience of property defects and maintenance responsibilities.
A clear survey report can explain what has been found, which issues need attention and whether additional advice should be obtained before exchange.
Which survey should you choose?
A Level 2 Home Survey may suit a conventional property that appears to be in reasonable condition. You can read more about what a Level 2 survey covers before deciding.
A Level 3 Home Survey is generally more suitable for an older, larger, altered, extended or visibly defective property. It provides more detailed reporting and includes estimated repair costs where appropriate.
Our guide comparing a Building Survey and Homebuyers Report explains the differences in more detail.
What if the lender’s valuation identifies a problem?
The lender may ask for additional reports, retain part of the mortgage funds or alter the amount it is willing to lend.
In that situation, you should speak to your mortgage adviser, solicitor and any appropriate specialist before proceeding.
Can the buyer rely on the lender’s valuation?
A mortgage valuation should not be treated as a substitute for a survey. It is prepared for a different purpose and may not give you the level of property condition information you need.
Commissioning your own survey gives you an independent report focused on your interests as the buyer.
Final thoughts
Mortgage lenders normally require a valuation, but they do not usually require the buyer to commission a full property survey.
The valuation protects the lender’s position. A Level 2 or Level 3 survey helps you understand the property and make a more informed decision before exchange.
Need an independent property survey?
Dunford Penrose Surveyors can help you choose the right survey for the property you are buying.
