We recommend to each client buying a property to have a survey carried out before they commit themselves to an exchange.  However, we are commonly surprised by the proportion of clients who ignore this advice…

Although we advise all clients to have a survey carried out, irrespective of what type of property that they are buying and where it is located, there seems to a number of popular misconceptions regarding its importance.  We have put together the below information to reiterate the importance of having a survey carried out when buying a property.

Lender Valuation

Clients buying with the assistance of a mortgage often rely upon the Lender’s Valuation.  However, this is a valuation only, for the benefit of the Lender, and not a survey; the clue is in the description!

First and foremost, the Lender needs to know that they will be able to sell the property easily, if necessary, and achieve sufficient sale proceeds to pay off your outstanding loan amount in the event that you default on payment.

These valuations are sometimes carried out on a ‘drive by’ basis without the Valuer even accessing the property and are rarely in any great detail.  Most Lenders offer the facility to their customers to ‘upgrade’ to a full structural survey for an additional fee.  In our view, this is money well spent.

Survey Cost

We are frequently informed that the cost of the survey is off-putting, particularly given that the house buying process, with the searches, costs and taxes is an expensive one.  It is true that a written report from a qualified and experienced Surveyor will cost several hundred pounds, but put against the purchase price this is a small price to pay for peace of mind and, in our view, represents real value for money.  

Surveyors highlight points about the property that go straight to the issue of value and can be a powerful tool in trying to renegotiate price if works need to be carried out.  Further, if you commission a survey, and if the report transpires to be incorrect, then there is a professional to hold to account.  It is vital to know what you are getting into; what remedial works are necessary, if any, and whether you should proceed at the price agreed.

Freehold and Leasehold

Clients buying flats can be of the view that as they don’t own the freehold, there is no need for a survey.  However, leasehold property owners have a vested interest in knowing that the building is sound and is being properly maintained.

It is also important to remember that the maintenance and repair of such properties is usually charged back to leasehold residents through the service charges they pay; if the property is in disrepair, these could be significant.

Structural Issues

Finally, clients regularly expect their Solicitor to advise on structural issues but this is not within our remit, nor expertise.  Our role is to report to you on the legal issues affecting the property such as  title i.e. does the seller have the right to sell the property, legal rights, covenants, planning/building regulations, boundaries and disputes etc.

Our investigations do not include questions about the soundness of the structure and whether the fixtures and utilities work satisfactorily. It is very rare for a Solicitor to visit the property and he or she may not be familiar with the area which the property is situated in. We may ask for a copy of the survey but this is to confirm that it has been carried out and to ensure that any legal points that the Surveyor raises are addressed.