Homebuyers Report and Valuation Survey

If you are buying a property built over 10 years ago, it's wise to commission your own Homebuyers Report and Valuation Survey. This is a concise report on the condition of a property, together with a valuation. Any major defects in the property will be listed, along with recommendations about further investigations required.

This type of survey is recommended for conventional houses and apartments that appear to be in a reasonable condition, but is considered inadequate for large houses (over 2,000ft sq or 200m sq), old properties (pre-1940), or converted or purpose-built apartments.

Most mortgage lenders encourage you to use the surveyor who carries out their valuation report. Most surveyors offer a discount if you book a more detailed survey that can be done at the same time as the valuation report. If, however, you use a different surveyor you will have to pay the full price of the survey, but you will have the benefit of a second opinion on the property.

The report is presented in a standard format of about 10 pages in length. The surveyor groups observations under four headings:

• Defects that are a threat to the fabric or structure of the building, such as subsidence, rotten roof timbers, or other major problems.
• Defects that could have a significant effect on the purchase price - rotten window frames for instance.
• Health and safety aspects, such as wiring requiring replacing or asbestos lagging around a water tank in a loft.
• Legal matters, for instance whether access is over another person's land, requiring the right of way.

The property will only be inspected where it's reasonably accessible or visible and electricity, gas, plumbing, and central heating systems will be given a visual examination - but not tested.

The cost of a homebuyer report varies depending on the value, age and condition of a property - approximately £250 for a house worth £100,000 to over £700 for houses worth more than £500,000.