Valuation Survey
All lenders will require at least a basic valuation of the property you wish to purchase. This survey is relatively basic but will provide a guide of the property's general condition and value. If the surveyor picks up any defects you may be advised to provide further specialist reports. You may have to negotiate with the vendor as to who pays for this.
The surveyor will arrive at the value of the property by comparing similar properties in the area that have been sold in the last year or so. They will take into account factors such as age, condition and location of the property.
This valuation is more for your mortgage lender's benefit than yours, but unfortunately it is you who will have to pay for it. If the house is valued lower (down valued) than the purchase price then your mortgage lender may withdraw their offer, or more commonly, offer at the reduced level with you putting in the balance.
This type of valuation should take about half an hour and although costs vary between lenders, £300.00 is probably the norm.
What if the property is down valued?
This is one of the most common reasons for sales and purchases to fall through. If the property is down valued you can attempt to re-negotiate the purchase price with the vendor, or you could ask the lender to seek a second opinion from the original survey. Failing that you may have to put in a larger deposit.
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