There are lots of different costs associated with the process of buying a property. As such it is good to be aware of them before you start, so you don’t get any nasty surprises along the way.
One key item that is required from everyone wanting to buy a property is a house valuation. You may also see this referred to as a property valuation or a lender’s valuation. However despite the change in names the idea is the same. When you find a property you want to buy, the mortgage lender will require this valuation. It allows them to confirm the property is worth the asking price (or at least the price you will offer for it).
Is it possible to get this done at no charge?
It depends on the lender. In some cases they may offer a free house valuation as a sweetener to entice you to get your mortgage with them. Look out for these deals but be aware of the actual mortgage terms as well. It may work out cheaper to pay for your house valuation and get a better deal on your mortgage instead.
If I do have to pay, how much will it cost?
The answer is ‘it depends’. The value of the property in question will come into play here. The cheaper the property price, the cheaper the valuation will be. This means a property worth around £100,000 should cost in the low hundreds to get valued. In contrast a property worth several million will cost several thousand pounds to have valued.
Different companies will also charge slightly different rates, and you may also see a difference depending on the area you live in. This makes it worthwhile to shop around for an idea of cost, so you can choose the most appealing price.
Does this mean I don’t have to get a survey done?
There is no legal requirement to request a survey on a property you want to buy. However it is strongly recommended you have a survey done as well. The house valuation is the most basic type of report you can get, and it won’t reveal if there are any major problems with the property.
The next step up is the Homebuyer’s Report, while the most in depth report you can get is the Building Survey. You may have heard this referred to as a Structural Survey. This latter option is of course the most expensive, but it might save you from buying a money pit. Again the costs for these depend on the surveyor you choose and how much the property is valued at. However it is usually money well spent – if only for peace of mind. And it could prevent you from buying a property that is riddled with problems.
As you can see, a house valuation is an important part of the process of buying a property. Make sure you factor in the cost when planning to move home.