Surveys on residential and commercial properties are generally carried out on older properties, listed buildings, properties that have been extended or modified and leasehold properties like flats. They can save the purchaser money if faults are found but choosing the right survey for your building is always important.
Homebuyers Survey and Valuation (HSV)
This survey is carried out against a specific set of criteria laid down by the Royal Institute of Chartered Surveyors (RICS). It will provide the buyer with an overview of the property and will identify the parts of the building that need further inspection (if any). Wiring, drains and gas are not included in the survey nor are areas that are covered such as floors under carpets.
The HSV is recommended for all properties that have not been extended or remodeled and are not unusual in nature. The HSV will include:
- Assessing the major and minor faults of the property
- Advising whether any faults need to be repaired
- A damp and woodworm report
- An insurance cost for rebuilding the property should it be destroyed
- A valuation of the property on the current market
- A recommendation of any further surveys that should be carried out
Building/Structural Surveys
A Building Survey (also known as a Structural Survey) is a detailed, comprehensive inspection of all the accessible parts of a building and any specific areas highlighted by the client. This type or survey is useful for all buildings regardless of age, condition and design and is particularly useful if the buyer wishes to make any changes to the building once purchased. This type of survey is more expensive than a HSV and will not include a valuation of the property unless this has been specified up front. For more information visit Our Property.
The Building Survey will include:
- All major and minor faults in the building
- The value of repairing faults in the structure
- Testing for damp and woodworm
- Investigating the damp proofing, insulation and drains (although drains will not be tested)
- A technical breakdown of the construction of the building including materials used
- Proposals for any further surveys that should be undertaken.
Basic Mortgage Valuation
When you approach a mortgage lender, they will require you to carry out a mortgage valuation on your property. In many instances the mortgage provider will pay for this, but you may have to pay for it yourself. The purpose of this survey is to assure the mortgage lender that the property is worth the money you are going to pay for it. It is not an extensive survey and does not take very long. The Council of Mortgage Lenders has more information on this type of survey.
Survey Results
When the surveys have been completed there are several options open to you depending on your status. If you are the potential purchaser of the property then the surveys will provide you with all the information you need to move forward with the purchase, including the price you are willing to offer. If you are the owner of the property, these reports will highlight any work, structural or otherwise, that has to be carried out on the property before you can release your investment in the building.
Commercial Property Surveys
Regardless of the function of the building, it will be surveyed as part of the buying and selling process. Commercial properties are generally subject to a Building Survey from the outset and they are carried out in exactly the same way as a Building Survey for a residential property. It is normally recommended that the seller of a commercial property take out their own building survey, to advise them of any issues with the building, and also as an incentive to the buyer.
Repairs to the Building
If the reports highlight any problems with the building, these may well have to be repaired before the sale can go through, not too much of a problem if you are selling a retail property, but a commercial one? Who do you get in to help re-point the brickwork on the fourth floor? Who do you get in to make the outside of the property look as good as the inside of the property? Cleaning the outside of your building is as important as cleaning the inside, so make sure you get some professionals in before you start the sale.