Confusion over mortgage valuations and surveys
The website says 53% of homebuyers are under the impression that a mortgage valuation, carried out by a bank, building society or mortgage company, is a Homebuyer Report which will identify potential problems.
“This is simply not the case,” said Homebuyer Online’s managing director, surveyor Hugh Greenhouse. “A mortgage valuation simply looks at the value of the property for loan purposes and it’s for the lender, not the buyer. It is not designed to show any potential problems. We estimate that around 500 properties a day in the UK are sold without a Homebuyer Report being carried out, which is leaving homebuyers vulnerable to devastating discoveries of issues which could jeopardise the value and the habitability of their home.
“On average a quarter of all homebuyers who moved in without a Homebuyer Report being part of the process had to spend over £1,000 on unforeseen repairs to the property, like damp proofing or roof repairs. We find it amazing that people will spend a hundred pounds getting a mechanic to give a second hand car a check before they buy it, but will baulk at spending money on a survey of a £250,000 property.”