The Difference Between a Home Report and a Mortgage Valuation
One of the most frequently asked questions we hear is “Will the Home Report include a Mortgage Valuation?”. Read on to find out the difference between them and to understand why most Home Reports won’t include a Mortgage Valuation suitable for the purpose of the buyers lender.
The Home Report will provide the buyer with all the information they need to know about the condition of the property including any alterations which have been carried out along with a scale of 1-3 on any repairs which may need to be carried out immediately or in the future. The survey doesn’t typically include a valuation of the property, but a current valuation of the property can be included on request of the seller.
A Mortgage Valuation Report, as opposed to other types of survey, is intended only to give a brief inspection of the property, and a market valuation. Its scope is restricted by the fact it’s based on a limited inspection and a number of standard assumptions.
The Mortgage Valuation is for the benefit of the mortgage lender and is designed to give enough information for the lender to decide whether the property is safe to lend on, and up to what amount.
In addition to the Home Report, surveyors may provide a generic Mortgage Valuation Report that answers many of the questions that lenders will have about a property. This is not a prescribed document, but will be offered to sellers by the surveyor who carries out the survey. This may be useful in any discussions with lenders about a prospective purchase.
However, it is important to note that while you’re entitled to ask your surveyor to include a Generic Mortgage Valuation of your property, be warned that not all surveyors are on every lenders panel, so a lender may not accept the valuation. The Council of Mortgage Lenders (CML) currently has 113 members and 86 associates so it is not surprising that all surveyors are not on all the lenders panels.
You also don’t know which lender your buyer may use so there is a huge chance the Mortgage Valuation will have to be repeated. The buyer normally pays for the Mortgage Valuation as their part of the purchase process. The seller is not obliged to provide a valuation as this is predominantly for the benefit of the buyer.
Ensure that you understand this fully, as some estate agents may try to sell you this Mortgage Valuation as an ‘add on’ cost to the Home Report so think very carefully before being charged any additional fees. Also always ensure the surveyor you instruct to carry out your Home Report is RICS qualified.
If you need advice on any aspect of the Home Report or selling your home, give us a call on 0131 608 0175 or email us at email@example.com
Andrew MacKenzie is a qualified Chartered Surveyor with over 20 years’ experience within the Scottish Property market. He specialises in all types of residential valuations including Home Reports, Private Valuation reports and Development Appraisals.
Excellent service from the initial contact.The survey was carried out without fuss or issues and report issued promptly.I would certainly recommend the home report company.
06:38 24 Jun 22
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11:52 16 May 22
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23:35 08 May 22
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18:51 02 May 22
I have used this company for a fourth time now for Home Reports, for myself and family, and on every occasion have found the service they provide to be second to none.Each survey has been carried out by Andrew MacKenzie who is extremely knowledgeable, and a pleasure to deal with.I will be using their services once again for a family friend in a couple of weeks timeI happily recommend them to anyone who requires excellent service, punctuality, and an extremely reasonable price ... 5 stars from me.