Buyers Eyes

Real Life Horror Story

People have often asked, why do I need a structural survey? Why the expense on top of all those other costs involved in moving home? It's easy to compare a survey to getting a mechanic to check over a car before purchase. If you take the risk and decide not to give your future home the once over, the results can be disastrous.

Tim and Pete were buying a two bedroom terraced home in Islington. They had decided to move from outside London to be nearer Tim's sick mother. They had sold their four bedroomed house for cash and decided to increase their mortgage.

They both felt happy in their new home until one Saturday they spotted a property in the same area, but with a roof terrace and a small garden. They decided to sell and move. They offered their house for sale through a local agent, who found a buyer within days.

The buyer sensibly decided to instruct a full structural survey. Upon inspection of the property the surveyor found a large settlement crack on the gable wall. Tim and Pete were horrified to hear that the damage looked well established and had been there when they bought the house. Tim and Pete lost their buyer and had to borrow a further £20,000 to repair the wall.

Had Tim and Pete instructed a chartered surveyor to do a structural survey prior to their purchase, they may have been in a position to negotiate a discount or arrange for the vendor to complete the work prior to completion. They even possibly would have chosen a different place.

If you're prepared to put down a deposit, which could be anything from £10,000 to £40,000 it makes sense to safeguard your investment. An independent survey is likely to let you know whether you have a silk purse or a cow's ear.

A surveyor can undertake several surveys at different levels. Firstly there is the mortgage valuation. This is essentially a one-page document for the purposes of the lender. This will be used to determine if the property provides adequate security. This survey often gives very little insight into the general condition of the property and offers even less accountability.

Next there is the option of a Home Buyers Report, which is normally a ten-page document covering the economic lifespan on the property, its value and repair. Not merely a valuation tool, this report identifies service charges and any immediate dilapidation costs. It will point out what may be wrong with the property and how to rectify it. This report should be shown to your solicitor prior to exchange so any costly items can be taken into account.

A Full Structural Survey is even more detailed still. This highlights remedial faults and structural defects and from there suggests solutions, quantifies the costs involved and investigates the cause of the problems. The structural survey generally comes with explanatory photographs, but this is not usual with the Home Buyers Report.

Any reputable surveyor will confirm an instruction in writing, with details of costs, qualifications and the nature of instruction. Those with FRICS, ARICS or Tech RICS after their name are members of the Royal Institute of Chartered Surveyors and are subject to the RIC's formal complaints procedure if the customer is unhappy with the work carried out. They should also be covered by professional indemnity insurance, which means costs can generally be recouped if things go wrong. Surveys should be written in clear and accessible language and a good surveyor should be willing to explain precisely what the technical terms in the report mean.

If problems are identified with your prospective property you could employ a structural engineer. Any future mortgage lender would use the engineer's qualifications and knowledge to determine any restrictions within their formal mortgage offer. The engineer's views are normally strictly adhered to.

The prices of these services vary and standard mortgage valuations are normally charged at between £150-£250. A Home Buyers Report around £450-£500 and a Full Structural Survey between £600-£1000. All of these costs are normally dependent on the size and value of the property. A Structural Engineer's report can costs an additional £500. Although all mortgage lenders are likely to offer these services you may entertain commissioning your own private study. This will ensure an impartial view and give peace of mind.

Many thanks to Ian Davidson (Chartered Surveyor) for technical content within this article. Mobile 07774 260415.

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