matt1

Damp & Timber Survey Report
Hello, It is NOT a mistake to choose a ‘Home Buyers’ report!
The ‘basic’ survey that the lender requires and makes you pay for is simply a valuation. They need to ensure the property is suitable security for the loan, (otherwise some bright spark may try and borrow 100k on a garden shed). Sometimes this ‘valuer’ will not even enter the property instead opting do a drive by valuation. This is good enough for the bank but you would be mad to part with any sizeable money without a real ‘survey’. Most buyers will go for a Homebuyers with the lender on the basis of cost.

To avoid the issue mentioned above you can opt for the ‘basic valuation’ with the lender and then instruct your own surveyor to do a ‘Homebuyers’ or ‘Full structural’(ask your estate agent for a recommendation or look on the web. Depending on the property the surveyor should guide you on the type most appropriate). A homebuyers or structural report this way will avoid the bank noting any issues.
It’s best to look on it as part of the purchase price rather than an added expense. If nothing comes back on the report, great, if something does you can use this to negotiate with the vendor and drive the price down accordingly.

My main advice would be to use a recommended mortgage broker. We deal with these issues all the time and are the only people truly on your side in the whole buying process (remember the estate is selling the house, not finding you a home, the ‘valuer’ is working on the banks criteria, the solicitor also by law works on behalf of lender).
If the mortgage lender requires a damp and timber report it’s likely every other lender will want the same, so the vendor should pay for this on the basis if you pull out the next buyer will need the same thing. So in the interest of speed they should pay for the £200 or at least half. Some estate agents are more knowledgeable and experienced and will help you negotiate this, others will just push you closer to exchange as unsurprisingly this is when they get paid!!

If the property is pre 1960 I would say there is a very good chance the lender will require one of these reports.

One last point, the surveyor also needs to cover himself and will always recommend actions. It is worth noting only with a ‘Full Structural’ are you covered by the surveyors insurance in case they get it wrong or miss anything. You get what you pay for, if you are worried about a few extra hundred pounds when you are spending £100k plus you are a little crazy! The 200-400 extra costs could save you 1000’s later on. (Ask my client who had a basic valuation done against my advice as he wanted to save money, 6 months later he had to move out of the house as the roof started falling in – cost, £27,000!)

Happy buying.

gices | 24 Nov 2011 23:16