If you’re in the process of buying a home, you may have heard the terms “mortgage valuation” and “survey” thrown around. While they might seem similar, these two services serve very different purposes and offer different insights into the property you’re purchasing. In this blog, we’ll explore the differences between a mortgage valuation and a survey, helping you understand what each one involves and why both can be important in the home buying process.
What Is a Mortgage Valuation?
A mortgage valuation is an assessment carried out by a lender to determine the market value of a property. Its primary purpose is to help the lender decide how much money they are willing to lend you for the property. The valuation ensures that the property is worth the loan amount, providing the lender with security in case you default on the mortgage.
Unlike a survey, a mortgage valuation is not an in-depth inspection of the property’s condition. It is typically a brief inspection, focusing more on the property’s value than on its structural integrity or condition.
What Is a Survey?
A survey, on the other hand, provides a detailed inspection of the property. It looks at various aspects of the building, such as its structure, condition, and any potential issues that may require repairs or maintenance. There are different types of surveys available in Scotland, such as the Home Report or an RICS HomeBuyers Report (Scheme 2), depending on how thorough you want the inspection to be.
Unlike a mortgage valuation, which is focused on the value of the property, a survey aims to provide a comprehensive overview of its condition. This makes it particularly useful for buyers who want to ensure they’re not inheriting costly repairs after purchasing a property.
Key Differences Between a Mortgage Valuation and a Survey
Here’s a comparison of the two:
| Aspect | Mortgage Valuation | Survey |
|---|---|---|
| Purpose | To assess the market value of the property for the lender. | To assess the condition of the property and identify any issues. |
| Focus | Primarily on the property’s value. | Primarily on the property’s condition and any structural issues. |
| Detail | Basic, brief inspection. | Detailed, thorough inspection with various levels of report. |
| Who Conducts It? | A valuer employed by the mortgage lender. | A surveyor, often independent of the lender. |
| Cost | Typically lower cost, sometimes included in the mortgage fee. | Higher cost, as a far more detailed inspection. |
Do You Need Both a Mortgage Valuation and a Survey?
While a mortgage valuation is required by most lenders, a survey is not mandatory. In Scotland, however, a Home Report is legally required for properties on the market. This Home Report includes a survey of the property’s condition, a valuation, and an energy performance certificate, which provides a detailed assessment of the property’s state. Although the Home Report is comprehensive, you may still want to consider a more detailed survey, such as an RICS HomeBuyers Report (Scheme 2), if you’re buying an older property or one that may require more in-depth investigation.
For more detailed information on the types of surveys available in Scotland, check out Scottish Government guidance on property surveys.
Next Steps: What Should You Do?
If you’re a first-time buyer or are unsure about the condition of a property, it’s wise to have a survey completed alongside your mortgage valuation. The survey will provide valuable insight into the property’s condition, while the valuation will ensure that the property is worth the loan amount. With both assessments, you’ll have a clearer picture of the property’s value and condition, which can help you make a more informed decision.
Home Report Company offers expert assessments with flexible appointments from 8am to 11pm, seven days a week.
Our RICS-registered surveyors provide clear, reliable reports within 48 hours.
If you need a Home Report, get a free quote today or call 01316080175 to book an appointment.
