To Survey or Not to Survey

Purchasing a property can be an expensive process. It can also be a confusing one, especially for FTBs who are completely new to it. With searches to pay for, mortgage valuations, legal fees, potentially ground rent / services charges to contribute towards and many other costs, it can all quickly add up. In times such as these FTBs may be looking at all those outgoings and considering – well what do I really need to spend. Where could we save some money. A survey will often appear as a satisfactory solution here. Do we really need a survey which would cost anything from a few hundred pounds into the thousands of pounds depending on what type of survey you want and what type of property it is. After all, you will likely have already paid for a mortgage valuation for your mortgage lender. Well, this article is aimed at helping you make an informed choice on that question.

As a starting point it is worth remembering that there is no requirement on you to obtain a survey. It is though highly recommended that you do so. Remember that the general principle of Caveat Emptor, let the buyer beware, applies to purchasing a property in England and Wales. If the property is in poor condition and you fail to conduct any checks prior to you purchasing it – then, save for any latent defects the Seller should have disclosed, that will be your fault.

You may think, well, we have paid for a mortgage valuation, which is a survey, and so that will pick up anything we need to know about. That is not the case. A mortgage valuation is first and foremost carried out to protect the lender’s interests, not yours. The primary concern of a mortgage valuation is whether the property offers suitable security for the loan being offered. It is not a comprehensive survey to advise on the condition of the property. The only way for you to fully understand the financial implications of purchasing the property are to commission an independent survey. It is worth noting that the cost of the survey could be significantly less than the cost of purchasing the property and then finding out afterwards there are substantial and expensive repairs that are going to be needed over the next few years.

The Royal Institute of Chartered Surveyors (“RICS”) introduced a new Home Survey Standard in 2021. Previously you had different named surveys depending on how comprehensive you wanted the survey to be. This new standard makes things a little more straight forward. We now have a Level 1, 2 or 3 Home Survey.

A level 1 Home Survey is designed to describe the condition of a property (it was previously known as the ‘Condition Report’), and will identify any risks, potential legal issues and urgent defects that will require attention, but it will not normally offer any guidance on how to manage defects that it identifies. This is your entry level, and so least expensive, survey. It is mainly aimed at newer properties or those generally in a good condition and of conventional construction. This will not offer a valuation of the property.

A level 2 Home Survey (previously the ‘Home Buyer Report’) does all that a level 1 Home Survey does but generally gives more detailed information about the property including advice on any identified defects and what future maintenance and / or repairs may be required. You can also choose to have a level 2 Home Survey with a valuation.

A level 3 Home Survey (previously the ‘RICS Building Survey – or sometimes known as a full structural survey) will provide a much more detailed analysis of the condition of the property. It will comment on what defects there are, what repairs should be taken and what maintenance options you would have. This is designed for older properties, or those that may be run down, or those that have been heavily altered over times, or those that are generally unusual in construction. This can also be a sensible option if you are planning to carry out any major works to the property.

The RICS website has a more detailed breakdown of each of these Surveys and this may help you understand what is going to be best for you.

It is not a solicitor’s job to tell you what type of survey is appropriate. Neither will a solicitor tell you that you need to have a survey. We may at times recommend you seek the advice of a surveyor in relation to issues we have identified through the legal process but that is the extent of it. A solicitor’s job is to ensure that you go into the purchase with the knowledge you need to make an informed decision. This article has not been written to persuade you to go one way or another. All it seeks to do is address some of the common misconceptions surrounding surveys/mortgage valuations and ensuring that you have the knowledge you need to make the decision that is right for you. Whatever that may be.

If you are a FTB and have any questions or queries in relation to the property process, then please reach out to our residential team who will be able to assist you.