Surveys and Valuations
The Mortgage Valuation Report
The primary purpose of a Mortgage Valuation Report is to provide an opinion to a Financial Lending Institution as to whether the property is suitable security for a loan. It is NOT and must not be treated or relied upon as a detailed report or survey on the existing or future condition of the property.
Major defects which are visible and apparent at the time of the inspection will be reported for the purpose of arriving at a valuation, the concealed areas will be assumed to have no significant defects. Items which do not seriously affect the value or the security of the property are not normally included in a Report of this type. The Valuer may well take such defects into account when arriving at the value but reference to these would only be given in a fuller Survey and Report.
It must be repeated that this is the most limited form of inspection and therefore it is recommended that a more comprehensive survey be instructed.
Home Buyers Survey and Valuation Report
This Report is based upon a format drawn up by the Royal Institution of Chartered Surveyors and gives prospective purchasers information on the general condition of a property, any significant factors likely to affect the value of the property, the value of the property on the open markets and the value for insurance purposes.
The information is provided in a straightforward format which is easy to read and understand. It is based upon a visual inspection and as much of the exterior and interior of the building as is accessible with safety and without undue difficulty including roof voids, flat roofs, outbuildings, site boundaries etc. and an overall impression of the services will be given.
This type of Report is the most commonly used and suitable for most 20th century properties, but structures which are unusual by virtue of design or construction, or very large properties may require a more detailed report but Richard Baker will be able to advise during the preliminary discussion.
The cost of the Report will depend upon its size, type, location and value but considerably less than for a full Building Survey.
The Building Survey (previously known as a Structural Survey)
A Building Survey is an investigation into the assessment of the construction and condition of the building. It is based upon a detailed inspection in as much depth as is possible without damaging the building or contents. The Report details important elements of the structure and fabric, and the likely cause of any defects and what repairs are recommended as well as advising whether further investigation by Specialists may be considered desirable.
The principal headings of the Report are: roof and roof void; rainwater goods; brickwork and walls (including internal partitions); stability; windows and doors; floors; dampness; joinery; services; outbuildings; specific requirements and summary. It does not normally include an open market value or insurance value although this can be included if required.
The Report will normally include guidance on maintenance remedial works and detailed comment upon individual defects.
Valuations for Sale, Tax, Probate and Insurance Purposes
Private Valuations can be commissioned for determining the property’s market value for sale purposes based upon the property’s use and condition, its potential for development or alternative uses and whether it has any special value to a specific purchaser.
TAX AND PROBATE
Valuations can be carried out for probate purposes and assessing any tax liability for capital gains or inheritance tax. We can also carry out negotiations with the District Valuer in respect of these values.
It is important for all buildings to be insured in order to protect your assets and is a necessity when lending institutions are involved. The property’s insurance value will be dependent upon its size, type, quality of construction, location and usage and in many situations bears no resemblance to the property’s market value. With building costs continuing to escalate, it is imperative that the insurance value of all property is regularly updated.