When applying for a mortgage, the majority of lenders will only carry out a basic valuation for mortgage purposes (Level 1) but you do have the option to get your own survey carried out. When making a property purchase, it’s a huge commitment and you may want the property checked out properly to make sure there are no issues you are unaware of that could put you out of pocket further down the line. Here is a list of surveys you could obtain:
RICS Level 2 Home Survey
An RICS Level 2 Home Survey is a detailed visual inspection of the property. This survey provides an account of the property’s condition and highlights significant problems with a straightforward ‘traffic light’ rating. This product was formerly referred to as a HomeBuyer Report.
When should you choose a Level 2 Report?
A RICS Level 2 Home Survey (formerly called a HomeBuyer Report) is most suitable for conventional houses, flats, or bungalows that are in reasonable condition and built from common building materials. It is not recommended for older buildings, as these builds often require a more in-depth Level 3 survey.
Armed with market-leading expertise, the RICS-qualified surveying team uses the standard traffic light system to make understanding the health of your property easy. This system breaks down into three key colour codes.
Key benefits
- 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; and other matters, including guarantees, planning, and building control issues, for your legal advisers.
- A standard visual inspection that doesn’t remove secured panels, electrical fittings, etc.
What is an RICS Level 3 Home Survey?
A RICS Level 3 Home Survey is the most in-depth and comprehensive report available. It provides a detailed picture of the property’s construction and condition, which can be crucial for anyone buying a home, selling a home, or looking to invest in their current home.
This report includes the roof, chimney, wall, floor, ceiling, door, and windows. It also contains advice on how to deal with certain problems discovered at the property, including repair options and the consequences of leaving any potential issues untreated. In the industry, this report is often referred to as a Building Survey.
When should you choose a Level 3 Survey?
You should choose an RICS Level 3 Home Survey (formerly called a Building Survey) if you’re dealing with a run-down, larger or older property, a building that is unusual or altered, or if you’re planning major works. This in-depth survey includes a thorough inspection and report to highlight any potential issues arising from visible and hidden flaws, provides an outline of the repair options available, and draws attention to serious or potentially dangerous conditions.
Key benefits
- A thorough inspection and detailed report on a wider range of issues.
- Outlines repair options and the likely consequences of inactivity.
- A description of visible defects and potential problems caused by hidden flaws.
Survey comparison
| What’s included | Level 2 survey | Level 3 survey |
| Report completed by an RICS qualified surveyor | Yes | Yes |
| Describes the condition of the property on the date of the inspection | Yes | Yes |
| Aims to show up potential issues and defects, before any transaction takes place | Yes | Yes |
| Aims to identify any problems that need urgent attention | Yes | Yes |
| Aims to identify things that need to be investigated further to prevent serious damage | Yes | Yes |
| Includes the standard visual inspection during which secured panels, electrical fittings, etc. are not removed | Yes | Yes |
| An enhanced service that includes a more extensive roof space inspection and comments on underground drainage | Yes | Yes |
| Aims to identify any repair or restoration work which can be factored into price negotiations | Yes | Yes |
| Provides a market valuation | Additional fee | Additional fee |
| A comprehensive visual inspection, which includes a more thorough consideration of the roof space, grounds, floors and services | No | Yes |
| Aims to establish how the property is built, what materials are used and how these will perform in the future | No | Yes |
| Aims to outline the repair options, whilst explaining the consequences of not acting | No | Yes |
Help to Buy Valuation
What is the Help to Buy Scheme?
Help to Buy is a government scheme that aims to help first-time buyers get onto the property ladder. It was designed to help those who need it most i.e. buyers who would otherwise be unable to access affordable mortgages due to having insufficient deposits.
Please note you can no longer apply for a Help to Buy: Equity Loan.
For more information, click here.
What is a Help to Buy valuation for loan redemption?
If you have bought a home using the Help to Buy scheme, you will not pay interest on the loan for the first five years. Equity loans from Help to Buy normally have a term of 25 years, by which time the loan must be repaid in full.
Alternatively, you may wish to pay off the equity loan amount sooner, switch to a different mortgage deal, or sell the property. When this time comes, the amount you must repay is worked out as a percentage of the property’s current market value.
Therefore, before making a redemption payment, the government requires you to obtain an independent valuation from a RICS registered valuer, (please note that this is not the same as a lender’s mortgage valuation). Our valuer’s report will determine the current market value of your home, which will form the basis for calculating the amount you must repay.
If the value of your property has decreased, then the amount you must repay may be less than what you originally borrowed. However, if the value of your home has increased, the amount you must repay may also have increased.
When you have obtained a Help to Buy valuation from an accredited RICS surveyor, you must send a copy of the valuation report to Target, which has been appointed by the government to administer the scheme. Target will then advise you on the amount you must repay.
Please note that your Help to Buy valuation will only be valid for 3 months. Therefore, it’s crucial to plan your timings carefully so that you obtain the valuation report near the time of your sale or re-mortgage process being completed. It may be possible to update the Help to Buy valuation, but this may incur additional costs.
Specialist reports
Sometimes an initial valuation or survey will identify the need for further specialist reports. These are usually regarding specific issues such as damp, drainage or structural problems. On occasion, expert assessments on even more specific issues such as wall ties, risks from trees, asbestos, or environmental hazards are also recommended.
Often, your bank will postpone your mortgage until such reports have been provided. Even if the receipt of such reports does not affect the lending decision, remember that buying a house is one of the biggest investments you will make so following the advice of an RICS Surveyor is highly recommended if you are to mitigate future expenditures.
The thought of arranging several further inspections can be a daunting prospect, especially when you already have so much going on. However, we have access to a whole host of reputable experts who are able to provide specialist reports.