When you’re buying a property, the costs can add up very quickly. And when the bills are flooding in, it can be tempting to skip a step to keep the costs down. But there’s one thing you shouldn’t scrimp on, and that’s your property survey.
We all know that buying any property will come with unexpected costs. Solicitor fees, insurance, removals – it all adds up. Having a survey done might feel like yet another thing you need to pay for, but it’s one that’s absolutely worthwhile. A property survey can save you time, money and a lot of headaches – but which type should you get, and are they really worth it?
What are the Four Types of House Surveys?
In general, there are four types of surveys you can have done when you buy a property:
Current Market Valuation: Does what it says on the tin. It provides you with a market value for the property, a reinstatement valuation by an accredited surveyor, and flags up any legal issues so that you can investigate further.
Level 1 Home Survey: Otherwise known as a condition report, this is the most basic survey option. It details the condition of the building, services and grounds, and provides an assessment of any defects and their importance.
Level 2 Home Survey: A visual, non-intrusive visual inspection of the building, inside and out, and any permanent outbuildings.
Level 3 Home Survey: The top tier level of survey. Level 3 is the most thorough survey you can get, and is recommended for any older properties.
Generally, level 1 surveys are only recommended for new-build homes, or those that are fairly modern and in good condition. Anything that has been extended, altered, is in bad condition or is older should have either a level 2 or a level 3 survey.
What’s in a Level Two Survey?
This is considered the standard survey, and the most common type done aside from a market valuation. A level 2 survey will:
Describe the construction and condition of the property on the date of the inspection
Identify any serious problems that need urgent attention
Identify anything that needs to be investigated further to prevent serious damage
Highlight any problems that may be dangerous
Show potential issues and defects before the transaction happens
Advise on the amount of ongoing maintenance that will be needed
Provide a statement of the EPC rating (when it’s available)
Add a comment on the EPC assessment, and note any differences between the EPC and the property
Highlights any relevant legal issues (like conservation areas, tree preservation etc)
Visual inspection of concealed areas
A conversation with the surveyor before and after the inspection.
And most importantly:
Help you decide whether you need any extra advice before committing to the purchase
A level 2 survey is non-intrusive, but means that the surveyor won’t lift up any fitted carpets or boards, but they will flag anything that might be a hidden defect. This makes it ideal for most standard modern houses, as it lets you find any visible defects that might affect the property value – and how much you pay for it.
What’s in a Level Three Survey?
A level 3 survey includes everything in the level 2 survey, plus a few more things. It’s essentially a much more thorough and detailed report that you get at the end, and will cover the specifics of building materials, defects and maintenance issues. Specifically, a level 3 survey will also include:
A report on how the property is built, what materials were used and how they will perform in the future
Descriptions of any visible defects, as well as exposing potential problems posed by hidden defects
An outline of the repair options and a repair timeline, in priority order, for any issues, along with a list of the consequences of not repairing.
Testing of services (plumbing, electrics, heating etc).
An indication of the rough cost of any repair work needed.
What is important to note is that a level 3 survey does NOT include a current property valuation. So if you need to go for a more thorough property survey, you will need to have the property valued separately.
Is It Really Worth It?
In a word, yes. While it might be tempting to opt out of a survey to save some money, it’s not a wise move. For one, any mortgage provider will insist on a valuation before going ahead with a purchase, so you will need to do this as a bare minimum.
While formal surveys aren’t a legal requirement, they’re heavily recommended by anyone in the property industry. These surveys help to uncover hidden defects in a property that might seem perfect, which means you can make an informed decision before making the biggest purchase of your life.
A proper survey can also save you on costly repair bills. According to the RICS (Royal Institution of Chartered Surveyors), the buyers who didn’t get a survey spent an average of £5,750 on repairs when they moved in. 17% of those people ended up spending upwards of £12,000 to make their new homes habitable. A survey can flag these issues ahead of time, allowing you to negotiate the price you pay for the property, leaving you more budget for repairs.
There are only a few situations that a level 2 or level 3 survey wouldn’t be needed:
If you’re buying a new build. In this case, look at getting a snagging survey done instead
If you’re repaying a help to buy loan
If you’re staircasing a shared ownership property
If you’re buying someone out of a current property
In any other circumstance, we will always recommend a proper survey is done.
At Hudson Conveyancing, we pride ourselves on offering clear advice and support for our clients. Whether you’re looking to buy your first home, remortgage or buy your second home, we’re here to help you understand the ins and outs of the transaction. Our team aren’t qualified building surveyors, but we do work with many chartered surveyors we can recommend to undertake house surveys quickly and efficiently. If you’d like an introduction, or to learn more about the home-buying process, just get in touch with the team today.
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