The costs of buying  - Valuation and survey fees

Required Reading


  


The costs of buying - Valuation and survey fees


The next cost to confront you is the valuation fee. There is no way of escaping this, assuming that you are going to borrow to finance the purchase. The property you choose is to act as security for the loan that the building society or bank is to give you; and the lender will obviously be concerned that its security is good enough.

 

What your survey might uncover

Of course subsidence is the nightmare of all nightmares and a case for walking away from a house purchase however the average survey often just throws up damp. In over 87% of surveys in England and Wales in 2014 uncovered damp, wet rot or dry rot problems. Often it is a case of asking your local damp proofing company to come and survey your property and then haggling with the owners to get the money taken off the price you have agreed to pay.

 

How much does a damp proof course cost?

Good question, there is a useful pricing tool here that gives you the price of damp proofing in an average house but costs should not be over the £750 mark for most homes.


At the same time, the valuation of the property can also be useful to you -if only in a negative way. If the society's valuers turns your chosen property down flat, then you should at least have serious second thoughts about the place.

Apart from this largely negative point, however, the valuation is simply what it says. Most building societies and banks will let you see a copy of their valuation these days, and they are likely to contain a warning to the effect that 'the inspection was not a survey and it is possible that there are defects in the property which were not discovered by the valuer in the course of his limited inspection'.

A valuation is not a substitute for a full survey. The building society valuation is costed according to the price that you have offered for the property. Table 4 shows the approximate fees you are likely to pay (these may vary according to the lender). If the valuation report is so gloomy that you decide not to go ahead, some societies might be prepared to refund part of the valuation fee to you -they are not obliged to, though you could always ask.

A full survey is much more expensive. Our data shows how much you are likely to have to pay: this can only be approximate as there is no 'scale fee'. If you require specific reports on, for example, the drainage or electrical wiring, you may have to pay extra for them.


More on shared equity mortgages

The costs of buying - The deposit


The biggest first cost of buying it's not normally spoken of as such the deposit that you will have to find for the property yourself As you will see from the following sections, the 'normal' amount that a building society will lend is 0.8 of the amount they value the property to be worth (which may well be less than the price you have agreed to pay).

Diligent searching among potential lenders may enable you to find one that is willing to lend in excess of this, though you are likely to be asked to take out extra insurance in the form of a mortgage guarantee policy. You should aim for a minimum of 0.1 of the purchase price to put down as a deposit, and . . .... see: The costs of buying - The deposit


Current Mortgage Offers

  • At Commercialise Yourself you can compare mortgages using our repayment calculator, look for special offers for first time buyers or for 95% loan to value mortgages and see the most popular choices, Nationwide, Accord etc, we now even have a buy to let section for the brave or heart or strong of pocket! You can send us an email if you want to know more about mortgages and what we do and we will get back to you as soon as we are able. offers@commercialise.org.uk

     

    Finding the right mortgage can be stressful, but we’re here to help you every step of the way.

    Even if you have no proof of income, poor credit rating or facing repossession of your home, we can normally say YES (even if the high street lenders have said NO)!

    Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. The overall cost for comparison is 7.9% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but our average fee is 2.36% of the loan value. We are authorised and regulated by the Financial Services Authority for regulated mortgage and non-investment insurance contracts.