Valuation and survey fees
This content applies to England only.
Housing laws vary between England and Scotland. Get advice relating to Scotland
If you want to buy a property, your lender will probably insist that you pay for a valuation to check that it is suitable for a mortgage.
If you can afford it, you may also want to have a homebuyer's report or a structural survey carried out to check the condition of the property. The fees involved can be expensive and probably won't be refunded if the sale falls through.
How much you have to pay usually depends on the size, age and price of the property, and how detailed an inspection you choose to have. It may be possible to combine the lender's valuation with a survey or homebuyer's report. This usually works out cheaper.
Mortgage valuation
Your lender will hire a valuer to check that the property is suitable for a mortgage and that the price you have agreed to pay is reasonable. A valuation is not a detailed inspection and doesn't include a thorough assessment of the condition of the property. It may not detect structural problems.
Some lenders charge for valuations and others don't. The cost usually depends on the value and size of the property, but is often between £100 and £250.
Surveys
A survey is a detailed inspection of the condition of the property, which is carried out by a qualified surveyor. It usually includes a valuation. Surveys can be expensive (from around £600 to £1,000), but identifying major problems before you buy, may save you a lot of money in the long run.
Repairs can be very expensive, so you should check the surveyor's report carefully. If it uncovers serious defects, you may decide you want to:
- hire a specialist to look at specific areas of the property before you decide to buy (although this would mean extra fees)
- negotiate a lower price
- get the seller to fix the problems before you buy
- withdraw your offer and not buy the property at all.
Homebuyer's reports
A homebuyer's report is less detailed than a building survey, but will give you more information than a valuation alone. They are usually cheaper than a full survey (around £350 or £500), but will not provide as much detail about the property you are buying. They are often suitable for recently built homes, but if you have doubts about the condition of the property, you may prefer to pay the extra and have a full survey carried out.
Making a complaint
If you are not satisfied with the service you get from a surveyor, you may be able to make a complaint. The Royal Institute of Chartered Surveyors has a complaints procedure and an arbitration scheme for sorting out disagreements. You can use these if the surveyor you used is a RICS member (most are). It usually works out cheaper than going to court and is legally binding.
