Valuation Survey
What is this?
A Valuation report is not a survey but a limited check on the property that the mortgage lender carries out to ensure it is worth the money they are lending. Lenders may provide a copy of the mortgage valuation to the buyer but it is unlikely to cover items of detail which would be picked up in a survey. There may be problems in the property that would cost a huge amount to put right – and these will not appear in the valuation report.
Who is it for?
The valuation report is intended for the benefit of the lender so he can be assured the property is worth, on the open market, the money he is lending. It also provides a rebuild figure, which is required to ensure that the buildings insurance is sufficient to cover the cost of rebuilding if the property were destroyed.
Who is it not for?
The valuation report gives no information on any defects in the building and therefore is of little benefit to a buyer. Buyers should instruct a Home Buyer’s Survey or Building Survey, however, a Home Information Pack which includes a Home Condition Report may be equally useful.
