Understanding Which Type of Property Valuation to HaveREMOUk
If you’re intending to purchase a property in the near future, then you’re likely to already know that you’re going to need a property valuation of some kind. The type you go for will depend on a variety of factors – something that we’ll be looking at in this blog. By reading on, you’ll understand the main types of valuation that exist and perhaps even which one is right for your needs.
It’s important to state that the right path to take will change from property to property, so the advice we give you here is just a guide. So, let’s waste no time jumping in and we’ll start by looking at the kinds of valuation you’ll have to choose from.
Type 1 – Mortgage Survey/Valuation
Ok, so the first option is the mortgage valuation, which typically involves a lender sending out an agent to the property to ensure that it’s suitable for lending on. So, you make your mortgage application for say £250k and all the mortgage company wants to know is whether the property is worth that money.
It’s basically the lender making sure that they’ll get their money back should it ever be repossessed in the future. This is a general survey that takes factors like area, local house prices and any defects that may affect the value. It’s one that doesn’t come with any kind of guarantee.
Type 2 – The Homebuyers Report
The next option is the homebuyers report, which is much more detailed and is often carried out by the same agent from the mortgage company. This valuation focuses on structural integrity, checking for things like damp, with a report being created that’s typically around 40-50 pages long.
This is a colour-coded report that has red, amber and green areas highlighted for the potential buyer. Red areas need urgent attention, amber areas need to be checked and green areas denote areas that are up to standard. This offers peace of mind that comes with knowing everything important is checked.
Type 3 – Full Structural Survey & Report
Lastly, we look at the most comprehensive valuation of them all – the full structural survey and report. This is a choice you’ll make when you need to know absolutely everything there is to know about a property, with areas like foundations and loft areas being checked.
This tends to be the preferred path to take when the property in question is older or has had major renovation works carried out since it was originally built. This can be quite an expensive choice to make, with a cost of anywhere between £500-£1500 not uncommon, but it most often comes with warranties and/or guarantees.
So Which Is Right For Your Needs?
The truth is that if you want to get approved for a mortgage, you’re going to need to have the mortgage valuation at the very least. Whether you choose to go for one of the other options is entirely your prerogative, however, you need to understand that if there are lots of areas for concern raised by the valuation, you may need to have them investigated anyway before approval is given.
Typically speaking, if the property you’re buying is relatively new and hasn’t had any major work done on it, the mortgage survey will be enough in most cases. It all depends on your needs and on the property in question.
Get the Expert Mortgage Advice You Need From REMOUK
As we’ve seen here, the ins and outs of securing a mortgage can be quite overwhelming when you’re new to it, but don’t worry as the REMOUK team is here to help you navigate these tricky waters. If you’d like to find out more about us and how we work, just visit us at www.remouk.co.uk where you’ll find everything you could possibly need to know.
Alternatively, if you would prefer to speak to a friendly member of our team, just call us today on 0113 873 0113 and we’ll be more than happy to provide you with no-strings-attached advice on how best to proceed. Thanks for reading our blog. We’ll be back soon with more tips from the mortgage world, so check back with us to avoid missing out.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBT SECURED ON IT. YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.