House Survey Guide

Buying a property is a major commitment, so it is important to understand both the lender’s mortgage valuation and the different surveys you can arrange for yourself.

A mortgage valuation and a property survey are not the same thing. The lender’s valuation is primarily designed to assess whether the property provides suitable security for the mortgage, while an independent survey can give you much more information about the condition of the property.

This guide explains the difference and the main types of survey available.

What is a house survey?

A house survey is an independent assessment of the condition of a property, carried out by a suitably qualified surveyor.

Depending on the level of survey you choose, it can identify defects, areas requiring further investigation, maintenance issues and potential repairs before you become legally committed to buying the property.

RICS currently categorises its Home Surveys as Level 1, Level 2 and Level 3. RICS

Mortgage Valuation or Property Survey?

These are often confused, but they serve different purposes.

Mortgage valuation

When you apply for a mortgage, the lender needs to establish whether the property is suitable security for the amount you want to borrow.

The lender may assess the property using:

an automated valuation
a desktop valuation
a physical inspection by a valuer

The method used will depend on the lender, property and application.

A mortgage valuation is primarily for the lender. It should not be relied upon as a detailed assessment of the condition of the property.

Some mortgage products include a standard valuation at no additional cost, while others may charge a valuation fee.

Independent property survey

A property survey is arranged for your benefit as the buyer.

The surveyor examines the property and reports on its condition. The amount of detail provided depends on the level of survey selected.

A survey may identify issues that could affect your decision to proceed, result in further specialist investigations or help you understand repairs and maintenance that may be required.

Types of House Survey

RICS Home Surveys are currently divided into three levels. The most appropriate level will depend on factors such as the property’s age, condition, construction, complexity and whether it has been significantly altered. RICS

RICS Home Survey Level 1

A Level 1 survey is the most basic of the three RICS survey levels.

It provides an overview of the property’s condition, highlights visible defects that require urgent attention and identifies potential risks or legal issues.

It is generally most suitable for conventionally built, relatively modern properties that appear to be in satisfactory condition.

A Level 1 survey does not normally provide detailed advice about repairs or ongoing maintenance. RICS

RICS Home Survey Level 2

A Level 2 survey provides a more detailed assessment and is suitable for many conventional houses, flats and bungalows that appear to be in reasonable condition.

It can identify defects that may affect the property and provide advice about repairs and future maintenance.

A Level 2 survey can be provided either:

as a survey only, or
with a market valuation and insurance reinstatement figure included.

This was previously commonly referred to as a HomeBuyer Report or HomeBuyer Survey. RICS

RICS Home Survey Level 3

A Level 3 survey is the most comprehensive RICS Home Survey.

It provides a more detailed assessment of the construction and condition of the property, including visible defects, potential hidden problems, repair options and the consequences of leaving defects unresolved.

A Level 3 survey may be appropriate for:

older properties
larger or unusual properties
buildings in poor condition
properties that have been extensively altered
properties of non-standard construction
homes where you are planning significant renovation or structural work.

It was previously commonly known as a Building Survey.

Which Survey Should I Choose?

There is no single survey that is right for every property.

The level you need will depend on the property itself and how much information you want before proceeding with the purchase.

A newer, conventionally constructed property in good condition may only require a Level 1 survey, while many buyers choose a Level 2 survey for a more detailed assessment.

A Level 3 survey may be more appropriate if the property is older, unusual, extensively altered, in poor condition or if you are planning major works.

If you are unsure, discuss the property with a qualified surveyor before arranging the inspection. They can advise which level is most appropriate for the property and your concerns.

When Should You Arrange a Survey?

Most buyers arrange their independent survey once their offer on the property has been accepted.

You do not normally need to wait for the mortgage process to finish. Your survey, mortgage application and conveyancing can progress at the same time.

However, it is sensible to receive and consider the survey before exchanging contracts, because exchange is normally the point at which the purchase becomes legally binding in England and Wales.

If the survey identifies a significant problem, you may want to:

obtain further specialist advice
get quotations for repairs
discuss the findings with your solicitor
reconsider the purchase
renegotiate the purchase price with the seller.

A survey does not automatically mean you should renegotiate. The significance of any defect, likely repair cost and the price already agreed should all be considered.

How Long Does a House Survey Take?

The inspection itself can take anywhere from less than an hour to several hours, depending on the property and the level of survey being carried out.

A Level 3 survey will generally involve a more extensive inspection than a Level 1 or Level 2 survey.

You should also allow time for the surveyor to prepare the written report following the inspection.

Timescales vary between surveyors, so if your purchase is moving quickly, ask when the inspection can take place and when you can expect to receive the report.

How Much Does a House Survey Cost?

The cost of a property survey varies depending on:

the level of survey
the property’s value
its size and location
the age and construction of the property
its complexity and condition
the surveyor you appoint.

A Level 1 survey will generally cost less than a Level 2 survey, while a Level 3 survey will usually cost more because of the additional inspection and reporting involved.

Rather than relying on a fixed national price, it is worth obtaining quotations from appropriately qualified surveyors and checking exactly what their service includes.

Are you ready to find somewhere new? Let us walk you through the process.

You can also call us on 01634 96811 to speak with an adviser about the kind of mortgage you need. Or simply make an enquiry through the form below and we’ll get back to you.

What Happens if the Survey Finds a Problem?

It is common for surveys to identify some defects, particularly in older properties. Not every issue means you should walk away from the purchase.

If the survey highlights a significant problem, the next step may be to obtain further information.

For example, the surveyor could recommend specialist advice relating to:

damp or timber defects
roofing
electrical installations
drainage
subsidence or structural movement
Japanese knotweed
asbestos
specialist construction methods.

You can then consider the likely cost and seriousness of the issue before deciding how to proceed.

If the problem could affect the mortgage lender’s security, tell your mortgage adviser, as the lender may need further information before proceeding.

Surveys for New-Build Homes

Buying a newly built property does not necessarily mean there will be no defects.

New-build buyers may choose to arrange a professional snagging inspection to identify incomplete work, defects or issues with the standard of finish.

A snagging inspection is different from a standard mortgage valuation and can be particularly useful before completion or during the developer’s defect-remedy period.

What Happens When You Remortgage?

When you remortgage, the new lender will normally need to establish the current value of your property.

Depending on the property and application, this may be done using an automated valuation, desktop assessment or physical valuation.

You would not normally need to arrange an independent Home Survey simply because you are remortgaging.

However, you may choose to obtain specialist advice if you have concerns about the condition of your property or are planning significant building work.

Ready to Move Home?

If you are buying a property and want to understand how much you could borrow or which mortgage options may be available, our advisers can help.

We can guide you through the mortgage process, from your initial Agreement in Principle through to mortgage offer and completion.

You can also read more about Our Mortgage Process.

Call us on 01634 968111 or book an appointment with one of our mortgage advisers.

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The actual amount will depend upon your circumstances.

There is no fee for initial mortgage advice before application. A fee may be payable if you decide to proceed, depending on your individual circumstances. Any fee will be discussed and agreed with you before you proceed.