Types of Mortgage Valuation

Before your mortgage lender can release funds for you to purchase a new home or remortgage your existing property, they are required by law to carry out a mortgage valuation.
There are three main types of mortgage valuation, each of which has its own distinct characteristics. The three main varieties of mortgage evaluation are: the Basic Valuation, the Home Buyer’s Report and the Full Structural Survey. We advise you to speak with a representative from your bank or building society to ascertain which type of mortgage valuation is most suited to your particular circumstances.

Basic Valuation
The basic valuation is precisely that: basic. Even though the borrower pays for it, it exists solely to satisfy the lender that the property acts as ’suitable security’. It provides the borrower with no guarantees regarding the suitability of the property as a place of residence. If, at some later date, faults and problems are found with the property, the basic valuation can’t be used to demand redress from either the lender or the valuer.
If you are looking for more in the way of a guarantee, you may wish to consider the Home Buyer’s Report.

Home Buyer’s Report
The Home Buyer’s Report is written with the borrower in mind. Unlike the Basic Valuation, the Home Buyer’s Report will provide details of the physical condition of the property and its suitability as a place of residence. Faults highlighted in the Home Buyer’s Report can be used to request repairs from the vendor, prior to a sale being agreed, or to renegotiate the asking price, or, in more extreme circumstances, to reject the property outright.
At something like double the cost of a Basic Valuation, the Home Buyer’s Report is a little pricey. However, it gives the borrower additional negotiating power and the right to seek legal redress from the valuer should the report prove to be inaccurate at some later date.
For complete peace of mind, however, you might want to take a look at the Full Structural Survey.

The Full Structural Survey
The Full Structural Survey or Building Survey as it is occasionally known, provides the most intensive and comprehensive research into the physical condition of a property and its suitability as a place of residence.
As with the Home Buyer’s Report, this will increase your negotiating power and provide you with an opportunity to sue should the report prove inaccurate.
The Full Structural Survey can be expensive (as much as £800, sometimes more), but the level of detail it provides and, by extension, the level of legal protection, is considerable.

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Posted by admin  On  June 5th, 2009  Permanent link