Short answer: a mortgage valuation is carried out for your lender, to confirm the property is worth enough to lend against. A house survey is carried out for you, to tell you about the condition of the property and what may need repairing. They answer different questions, so a valuation is not a substitute for a survey.
What is a mortgage valuation?
When you apply for a mortgage, the lender arranges a valuation of the property. Its purpose is to protect the lender: it checks that the property is adequate security for the loan and that the price you have agreed is reasonable.
Some valuations involve a short visit. Others are carried out from the desk using sales data, with no visit at all. Either way:
- it is instructed by, and written for, the lender,
- it focuses on value, not condition,
- you may not receive a copy, and if you do, it will say very little about the state of the building.
If the valuation comes in below the agreed price, the lender may reduce the amount it will lend. This is sometimes called a down-valuation, and your broker can advise on the options.
What is a house survey?
A house survey is an inspection you commission from a RICS-regulated surveyor, who works for you. It looks at the condition of the whole property: roof, chimneys, walls, damp, timbers, windows, services, drainage and outbuildings, as far as they can be seen safely.
There are two main types for buyers:
- RICS Level 2 Home Survey: for conventional homes in reasonable condition. Each part of the property gets a condition rating, so you can see at a glance what needs attention.
- RICS Level 3 Building Survey: our most detailed inspection, for older, altered or unusual properties. It explains defects, their likely causes and the repairs needed.
Side-by-side comparison
- Who it is for: the valuation is for your lender; the survey is for you.
- What it answers: the valuation asks "is it worth the loan?"; the survey asks "what condition is it in, and what will it cost me?"
- Inspection: the valuation may be a short visit or no visit at all; the survey is a full inspection of the accessible parts of the property.
- What you receive: from the valuation, often nothing or a brief summary; from the survey, a detailed written report.
- Who it protects: the lender, or you.
Do I need both?
If you are buying with a mortgage, the valuation will happen whether you commission a survey or not. The real question is whether you want to know about the condition of the home before you commit. For most buyers the answer is yes, especially with an older home, a property that has been extended, or a purchase near the top of your budget.
A survey also gives you something a valuation never will: a clear list of defects and repairs to take to your solicitor and, where appropriate, to the seller before exchange.
Can a survey include a valuation?
Some surveyors offer an opinion of value with a Level 2 or Level 3 survey. We do not. Our surveys focus entirely on the condition of the building, and your lender's valuation covers value. If you need a separate valuation, ask a RICS Registered Valuer.
Frequently asked questions
Book your survey
Altura Surveyors is an independent, RICS-regulated firm based in Farnham, covering Hampshire, Surrey and Berkshire. Get your fixed-fee quote online or call 01252 929125.