New Valuation procedures

24.01.08
 

Mortgage Valuation (HBR
A Mortgage Valuation is a brief inspection of a property, on which a loan/mortgage is to be secured. This is carried out on behalf of the bank or lending source in order to establish the general condition of the property in terms of suitability for loan security purposes and to provide an Open Market Valuation (OMV) of the subject property.

Whilst the prospective purchaser often has to pay, or at least contribute towards the costs of this initial valuation, (i.e. as an administrative fee levied by the prospective mortgage lender) this is not a residential ‘survey’ as such, and contractual liability is generally only between the bank and the valuer.

Home Buyer Survey & Valuation (HBR)

The Home Buyer Survey and Valuation is a private report supplied to the client (i.e. the prospective buyer of the property).

This pro-forma document of around 12 pages deals with the general condition of the property prior to purchase. The inspection and report is designed by the RICS (Royal Institution of Chartered Surveyors) and is only relevant to properties constructed after 1930 and properties of low to mid range value.

The purpose of this report is to inform the prospective purchaser as to any significant or major progressive defects, which might adversely affect their decision to purchase this property and whether this has any direct affect on valuation.

Recommendations for action will be limited to instructing the client to commission further investigation into the extent and costs of remedial works. This report includes an OMV and an assessment of insurance/reinstatement value.

With this report, contractual liability is directly between the client and the surveyors and will be covered by a professional indemnity insurance scheme.

Full Building Survey (FBS)

A Full Building Survey is a comprehensive report on the property, including the condition of all elements of the structure, a schedule of all defects, both major and minor, and the provision of recommendations for a planned maintenance programme in order to maintain/improve marketability of property in the future. In addition we provide general estimates of costs involved in the repairs deemed necessary.

This type of report can be undertaken on any form of property, although in the case of flats the report is limited only to the subject flat and not other flats within the block and to those areas of the superstructure that can be accessed at the time of inspection.