Valuations and surveys
When you take out a new mortgage on a property whether a purchase or a remortgage, the mortgage lender needs to value it in order to ensure that it offers sufficient security. There are three levels of valuation/survey:
1) Basic valuation
A basic valuations is carried out on behalf of the mortgage lender (not your behalf) even though you may have to pay for it. Most lenders will charge you valuation fees on a sliding scale depending on the value of property. The report itself is very basic,as such all lenders disclaim responsibility for the condition of the property.
This means unfortunately you have no comeback against the surveyor (professional negligence etc) for any defects of problems they have not highlighted in their report.
2) Home buyers’ report
A Home buyers report is more detailed than a basic valuations report but is still limited to a set format on the readily accessible parts of the property (they won't be digging to check your foundations!). It may offer you some limited recourse should the surveyor, who is acting on your behalf rather than the lender’s, be negligent however this will be limited to what he has the ability to inspect or reasonably should have inspected.
3) Full structural survey
A full structural survey is the most thorough report available. If the property is defective in any way, the surveyor should discover this. If major defects are not discovered, the surveyor who drafted the report would have some legal liability.
With any survey, if there are potential or actual defects evident, then the surveyor will likely suggest you obtain additional specialist reports, these will be at your expense and may be time-consuming.
Surveyors who perform a Home buyers’ reports or a full structural survey will require you to sign a contract with the surveyor to formalise their responsibilities to you.
Applicants should always check with mortgage lenders before instructing their own valuation or survey. Most Lenders work with panels of surveyors; if your surveyor is not known to your lender you may find yourself paying again for a valuation by one who is known.