In this article, Conveyancing Executive Natalie Neil discusses property surveys.
She looks at the types of surveys, what will be checked, the costs involved, choosing a surveyor and more.
What is a property survey?
The inspection of land or property to examine the condition, carried out by a surveyor.
A survey is usually conducted to highlight any issues or defects that a property may have, so that these problems can be addressed promptly.
Property issues can become worse and more expensive over time, so it's important that a surveyor examines the property as soon as possible.
When are property surveys done?
A survey will normally take place once your offer on the property has been accepted.
Any survey must be done before exchange of contracts for the purchase. You are unlikely to have any claim for defects discovered afterwards.
Do I need a property survey?
It's definitely a good idea. Having a survey done allows you to become aware of any problems before you purchase a property.
Without a survey, you'd be 'going in blind' and be unaware of issues that could cost you a lot of money.
You want to take the costs of resolving issues (e.g. damp problems) into account, before purchasing a property.
If the survey uncovers any major work that needs to be carried out, you may be able to negotiate with the seller to get a reduction on the purchase price. Without a survey, you wouldn't know if there were any issues, big or small, with the property!
Conveyancing Executive Natalie Neil says: "We recommend you always get a survey on a property purchase. Paying out a few hundred pounds for this service could potentially save you thousands in the future."
What if the property is covered by a NHBC Agreement?
New houses are normally covered by a National House Builders Council (NHBC) Agreement/Guarantee. This covers major structural items for 10 years and lesser items for 2 years. You should, however, still consider whether you wish to have a survey.
What will a surveyor check?
This depends on the type of survey. Below we outline the different types of survey and what is included in each report...
What are the different types of surveys?
There are three different types of property surveys, which are referred to differently depending on the surveyor, they are as follows...
Condition report/ Rics Home Survey
This is the most basic type of survey, which highlights the most important issues but doesn't go into too much detail.
The report usually includes an assessment of the most significant and prevalent issues. Such as any immediate risks and defects and any potential legal issues that could arise.
We recommend using this type of survey if the property you're looking to buy is modern and in a good condition.
Homebuyer report/Home condition survey
This is the most common of the 3 types of survey and usually provides enough detail for a property purchase on a surface level.
The report usually includes:
- An assessment of the property condition, including anything that doesn't meet building regulations
- A recommendation from the surveyor on whether the purchase should go ahead
- Required action to be taken before purchase (i.e. issue resolution)
- A rundown on any potential issues that could come to light in the future
- Market valuation (if desired)
We recommend using this survey if you want something more than a standard survey, such as the surveyor's opinion on the purchase going ahead or market valuation.
Full structural survey/RPSA Building Survey
This is the most thorough type out of the three. The surveyor will conduct a 'deep dive' into the property's structure as well as its condition, looking further than any of the other surveys mentioned.
This includes analysis of the above and more. Surveyors will carry out an 'intrusive' inspection, meaning that they'll look further than the eye can see - moving sofas and cabinets, looking under floorboard etc.
We recommend getting a full structural survey if:
- The property is in a bad state/condition
- The property is over 50 years old
- The property has an unusual design or layout, such as a thatched roof
- You wish to make significant changes/alterations to the structure of the property (e.g. large extension, knocking down of internal walls etc.)
What about for leasehold property?
If you are buying a leasehold flat or maisonette in a block of two or more dwellings then you will almost certainly be obliged, under the lease, to contribute to repairs and renovations for the whole block.
Accordingly, instructions to a surveyor to survey a flat must also cover the structure of the block as a whole.
This may prove more expensive but will give you the chance to assess the cost of your obligations as lessee under the lease.
For further advice on leasehold property matters, you can get in touch with our Leasehold Property Team here.
How much does a survey cost?
This depends on the type of survey, size and price of the property as well as the location.
Generally, a Condition Report will cost in the region of £300-£900, but can cost less or more than this depending on the factors mentioned above
The price of a Homebuyer Report varies, most of the time falling within the £400-£1000 bracket.
A Full Structural Report will set you back around £600-£1500 but, again, this varies.
Natalie Neil says "Check to see if your mortgage lender is using an outside firm of surveyors to do their valuation. If so, those surveyors may agree to do a separate report for you - sometimes agreeing a reduced cost to you, as there would be some duplication."
Other costs in property purchase
Two other costs that are of big concern to potential home-buyers are conveyancing costs and stamp duty land tax (SDLT) costs. We've written articles about these topics, which you'll find links to below to find out more...
How to choose a surveyor
Make sure they are either a part of:
- RICS (Royal Institution of Chartered Surveyors), or...
- RPSA (Residential Property Surveyors Association)
We recommend that the surveyor you choose is a part of one of these associations, to ensure that they are qualified professionals who will correctly and appropriately assess your property at a designated price.
Ensure that your chosen surveyor has appropriate indemnity insurance.
What problems might be found in property survey?
Common problems or issues that may arise from a report include, but are not limited to:
- Damaged roof
- Damage to structural wood
- Damp
- Electrical safety issues
- Insulation issues
- Japanese knotweed - plants which can make a property's structure un-steady
- Problems with draining
- Subsidence - unstable foundations as a result of surface movement
- Window problems (e.g. ill fitting or damaged)
What options does a buyer have following a bad survey?
Depending on the severity of the issues raised, as well as your financial situation, you may want to consider the below options...
- Continuing with the purchase & addressing issues once you own the property
- Re-negotiating the purchase price with the seller to include costs of repair work
Conveyancing Executive Natalie Neil says: "Read the survey with care and arrange to have carried out any suggested specialist reports and/or to obtain quotations for recommended works.
Do check for any items that have not been included and therefore excluded from the report."
You could also claim professional negligence and receive damages. Find out more here.
Can I pull out of the transaction after the survey?
It is possible to pull out of the sale of a property any time up until the exchange of contracts, so, if the survey has been conducted before this time, yes.
However, this is not something that you'll likely want to do unless you have no other options.
Especially when you consider the time, effort & money, such as the cost of the survey and instruction of solicitor & estate agent, both you and the seller would've poured into the transaction so far.
This is not a decision which should be taken lightly. Feel free to speak to us over the phone if this is something you're considering and we can discuss this in more detail. Call us on 01202 499255.
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Specialist property & Conveyancing solicitors
If you have any questions following this article, or are looking to instruct a solicitor to help with the purchase of a home, feel free to get in touch with our friendly team.
We offer a free initial chat for all new clients.
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