LONDON SURVEYORS

In my view it is absolutely essential to have a survey carried out by London surveyors on the property you are planning to buy (unless it is a new-build property with guarantees in place – even then I would still suggest having a homebuyer’s survey).

The reasoning is simple. The survey may cost a few thousand pounds, but it should give you assurance that you are not making a huge mistake. It will uncover any structural problems or potential planning issues. This information will allow you to renegotiate the agreement or in the worst cases make you walk away from the purchase.

This has to be better than the alternative: discovering that there is a chronic damp problem or subsidence. Worse: discovering that planning permission was not granted for the large extension and that you have to demolish it and reinstate the original design.

London surveyors - The Survey

There are no specific rules and regulations regarding the use of a survey except where the property (or indeed a separate property) is to be used as collateral for funding purposes.

A survey is generally required after an offer to purchase is made. Such offers are usually conditional and will state that the price is “subject to survey.” However there is no legal requirement to even obtain a survey, although it is sensible to contact London surveyors unless you are experienced in property construction and defects. If you do inspect a property yourself this can give you some idea of its condition, but there is no doubt that a trained eye will show you more problems, which you potentially would not pick up on.

A survey might seem costly but in relation to the price of the property and potentially set against the cost of major defects it can be a prudent investment. Also if the survey does uncover significant defects it could be used to renegotiate the price.

Furthermore there can be legal issues regarding the property, which would need to be checked prior to purchase. If a property has been altered the Solicitor (who will not have inspected the building) will want to know if there have been any alterations, which would have required Local Authority or Statutory Approvals. Similarly there could be issues with works undertaken close to the boundary of the property, which may be subject to Party Wall Agreements.

London surveyors - The three most common types of survey are as follows;

Valuation Survey

As noted earlier all lenders usually require a valuation of the building in order to ascertain that they are not lending you more than the property is worth bearing in mind the trends in property prices at the time of purchase. Essentially they want to know that if they are forced to repossess that they can get at least as much money back as they lent against the building. Whilst this is called a survey, it is only a brief inspection, which intended to advise on a suitable open market value of the building together with perhaps one paragraph regarding general condition. The valuer arrives at a value by comparing the property with similar ones, taking factors such as age, condition and location into account. The basic valuation is commissioned by your mortgage lender, and is for their benefit, but it is the purchaser who must pay for it. If the house is valued lower than the purchase price then your mortgage offer may be withdrawn, or offered on the condition that specified work is carried out on it first.

The mortgage company will usually want one of their own selected London surveyors to undertake the survey report. A list of London surveyors may be provided although the costs are often determined by the mortgage company.

Where no mortgage or funding of the purchase is required it is unusual for purchasers to require a valuation survey. The reason for this is that most purchasers will have researched the market and will have a good idea whether the property is worth what is being offered. Instead most will want to know the condition of the building.

London surveyors - Homebuyers Report

This survey is more detailed than the basic valuation, and is more for the purchaser’s benefit rather than the mortgage lenders. The homebuyer's report is recommended for houses that are under 50 years old, conventionally constructed, and in generally fair condition.

While less thorough than a building (formerly known as a structural survey), a homebuyer's report gives an indication of the state of the property and repair. The London surveyors reports on all visible parts of the property particularly any areas that will need work straight away or at a later date. Further specialist surveys will be recommended if required. Any issues to be discussed with your solicitor, should be noted in the report. An estimation of the open market value (Valuation) of the property is also included.

Many mortgage companies prefer the purchaser to instruct the homebuyer’s survey. Again they usually require one of their panel London surveyors to undertake this for you and since the panel surveyor will be undertaking the valuation it can be cheaper to instruct them to do the homebuyers report at the same time.

One of the considerations however is the perceived conflict between who is the surveyor’s client. Is the mortgage company the client or is the purchaser the client. Liaison with one of the panel surveyors can be more difficult therefore than when the detailed part of the survey is independently instructed.

The inspection itself depending upon the size of the property takes between one and two hours to complete. The report comes on a standard report sheet generally with standard paragraphs and is normally about 6-8 pages of property specific information and a further 10-15 pages of generic advice.

London surveyors - Building Survey

This is the most comprehensive type of survey. It is suitable for any building, but is especially recommended for older buildings (50 years and upwards); those constructed out of unconventional materials such as timber or thatch; and properties which have had alterations or extensions, or which you intend to alter or renovate.

The London surveyors will check the property thoroughly, looking at everything that is visible or easily accessible to examine the structure, its general condition and significant faults. Where specific faults are identified such as to the drainage further specialist advice may be recommended but generally only where obvious defects are noted. Similarly areas such as the electrical system or plumbing system will be inspected but specialist tests will usually not be carried out unless specifically required by the purchaser.

The report you receive should be thorough and long, as London surveyors are legally obliged to inform you of the nature of the construction, the defects identified and what action is required in respect of those defects. Budget costs are often provided for the more significant defects. 

A building survey normally takes much longer than the one or two hours required for the homebuyer's report. The survey report is also a bespoke report of between 25-50 pages, so this is a much lengthier process than for a homebuyer's report. The building survey often does not include a Valuation Report although this can be requested if necessary.

Again the building survey can be undertaken by a mortgage company panel surveyor however many purchasers prefer to instruct an independent specialist Building Surveyor to undertake the inspection since it can be easier to discuss the survey with the independent surveyor and to obtain further advice as necessary.

London surveyors - The Instruction

In all cases it is important to confirm in writing what you inspect from the London surveyors or what service the surveyor intends to provide together with the cost of the survey. For the valuation and homebuyers survey there is usually a standard instruction sheet. Since the Building Survey is an independent survey with no standard format the surveyor should advise what the survey includes. In addition to the cost of the survey and some exclusion this typically will state such thing as;

“The survey will report on the building, and external areas. All accessible parts will be inspected. The inspection is a general surface examination of those parts of the property, which are visible and readily available for examination from ground and floor levels (or from a 3m surveyors ladder,) without risk of causing damage to the Property or injury to the London surveyors. The report will describe the form of construction of the various elements and will draw attention to defects in design or construction and suggest the cause and remedies. Electrical, mechanical and underground services will not be tested or inspected in detail but a report into the visual condition of these items is included.”

Where a building survey is instructed you should check that structural defects and diagnosis are included. Occasionally some building surveys may identify structural defect but require you to refer the diagnosis to a structural engineer although this is unusual. Homebuyer’s reports will usually require structural defects to be diagnosed by a structural engineer.

However you may have a specific requirement. You may wish to extend into the loft or to the side of the house. You can advise the Building Surveyor you wish such things to be included in the report in respect of feasibility or difficulties.

Conclusion

Whichever format you choose, if you have no knowledge of the purchase process it is good practice to seek advice from a Solicitor, an estate agent (preferably not the one through whom you are buying the property) or a friend with experience in property. There are also various institutions such as the Royal Institution of Chartered Surveyors who can recommend surveyors and give free advice. Always check, however, that your surveyor carries the necessary insurance for undertaking such work.