Do you really need a survey – and what type is best?

When you find a property that you like and want to make an offer on, it is an exciting, busy time. It is also a time when you can have a lot of financial outlay. Solicitor’s fees, estate agent’s bills, booking removal vans – the list is long and it can be tempting to try and save costs wherever possible. One thing that must never be removed from the list, however, is the property survey.

What is a property survey?

A house or property survey is an unbiased, third-party inspection of the entire property, inside and out, by a professional expert. It is conducted before the final sale agreement goes through and helps inform the buyer whether or not the property is a good investment to make. Surveys can raise a number of key issues and concerns over the structure of the building. For example, a survey could reveal areas of damp or subsidence that would need costly repairs to put right. It can highlight contraventions to building regulations, or health and safety best practice. It can also identify the type and age of walls, insulation, pipework, glazing etc.

Why do I need a survey?

Surveys provide a lot of valuable information about a property that can influence whether or not you go through with a proposed sale or not. If problems are identified, the survey gives a starting point for further investigations and decisions about how to out things right – and who will pay for them, buyer or seller. Arranging a survey gives peace of mind that the seller is not hiding something concerning – or that they simply don’t know about a potentially serious issue – ahead of the sale. If your survey does reveal an issue and you still want to go ahead with the sale, you can use the details to negotiate a discount off the selling price of the property. This would typically match the amount of money it would take to put the issue right. It is important to note that a mortgage valuation is not the same thing as a survey.

What about older properties?

It is even more important to arrange a survey if you are interested in buying an older property that is, say, more than 150 years old. For example, an older house might have a thatched roof, timber frames or decorative historical features such as stained glass. A former factory, church or schoolhouse may have fittings that you are not allowed to remove for reasons of public interest. If a property is listed, or falls under a local conservation area, a survey can also help you work out what legal and practical restrictions the building falls under in terms of future renovation, modernisation or and repairs. Historical properties can also be more prone to structural problems arising from older age, so these are important to identify and rectify before the sale is finalised.

What types of survey are there?

There are three main types of surveys that are available to domestic buyers in the UK that are accredited by RICS – the Royal Institution of Chartered Surveyors. It is strongly advised to only choose a surveyor that is a member of RICS, to ensure consistency and quality in their work. Level 1 is the cheapest and most basic. It is suitable for people buying conventional, modern homes made from decent quality materials and in a good or reasonable physical condition. It covers the main property and grounds, assessing them using a ‘traffic light’ system. No advice or valuations included.

Level 2 covers everything in level 1, but also includes cellars and roof spaces. The report includes more details about areas needing further investigation, potential ongoing repairs and budget advice. Level 2 surveys can include valuations of you ask for them, which include a market value estimate, insurance reinstatement figures and details of anything the surveyor thinks could affect the property’s value going forward.

Finally, a level 3 survey goes into far more detail than the other two. It is a full structural survey that gives more comprehensive advice about the risk of potential or hidden defects in inaccessible areas. Furthermore, the survey will cover advice for remedial work, along with associated costs and explanations about the consequences of not completing the recommended work.