When buying a home, a valuation and a survey both look at the property, but they serve very different purposes. This guide explains mortgage valuations and surveys: what each is, the types of survey, why a survey is worth getting, what a down-valuation means, and how to choose.
The valuation versus a survey
A mortgage valuation is the lender's check that the property is worth roughly what you are paying and is suitable security for the loan, done for the lender's benefit, while a survey is a more detailed inspection of the property's condition, done for your benefit, as our guide to the application process explains. So a valuation protects the lender, whereas a survey informs you about the home you are buying.
The lender's valuation
The lender's valuation is usually fairly basic, focused on confirming the property's value and that there are no obvious issues affecting its worth as security, as our guide to what lenders look at relates. It is not a thorough check of condition, and you may not even see a full copy. So you should not rely on the lender's valuation to tell you about the property's condition; that is what a survey is for.
Types of survey
Surveys come in levels: a basic condition report gives an overview of the property's condition, a homebuyer report is more detailed and suits most conventional homes, and a full building or structural survey is the most thorough, suiting older, larger or unusual properties. So you can choose a survey to match the property and your needs. Picking the right level of survey gives you the appropriate depth of information for the home you are buying.
Why get a survey
A survey is worth getting because it can reveal problems, from damp to structural issues, that the lender's valuation would not, helping you avoid nasty surprises, budget for repairs, or renegotiate the price, as our guide to conveyancing relates. So although a survey is an extra cost, it can save you far more by uncovering issues before you buy. For most buyers, a survey is a wise investment.
Older and unusual properties
A thorough survey is especially important for older, larger or unusual properties, which are more likely to have hidden issues and may need a specialist inspection, as our guide to non-standard construction relates. New-build homes usually come with a warranty but can still benefit from a check. So the older or more unusual the property, the more valuable a detailed survey becomes in protecting you from costly surprises.
What a down-valuation means
A down-valuation is when the lender's valuation comes in lower than the price you agreed, which can mean the lender will lend less than expected, leaving you to find more deposit or renegotiate, as our guide to what loan-to-value means explains. So a down-valuation can affect your purchase. Understanding this risk, and having some flexibility, helps you cope if the valuation does not match the agreed price.
The cost
A mortgage valuation may be free, included by the lender, or charged as a fee, while a survey is an additional cost you pay, varying with the level and the property, as our guide to the true cost of buying relates. So budget for a survey as part of your buying costs. Given what a survey can reveal, most buyers find the cost worthwhile for the protection and peace of mind it provides.
An example of a survey finding
Imagine a survey on an older home reveals damp and a roof needing repair. Armed with this, you could renegotiate the price, ask the seller to fix the issues, budget for the work, or reconsider the purchase, as our guide to the true cost of buying relates. This example shows how a survey turns hidden problems into information you can act on, which is its main value to a buyer.
Who arranges what
The lender arranges its own valuation as part of the mortgage process, while you arrange and pay for any survey you choose to have, often through a chartered surveyor, as our guide to how the application works explains. So the valuation is the lender's step and the survey is your choice. Knowing the difference helps you decide whether to commission a survey, which the lender's valuation does not replace.
Choosing the right survey level
Choosing the right survey depends on the property: a condition report or homebuyer report often suits conventional, reasonably modern homes, while a full building survey suits older, larger, altered or unusual properties, as our guide to non-standard construction relates. So match the survey to the home. Paying for a more detailed survey where the property warrants it gives you the depth of information you need to buy with confidence.
Acting on survey findings
If a survey finds problems, you can use the findings to renegotiate the price, request repairs, get quotes to budget for the work, or, in serious cases, withdraw before you are committed, as our guide to conveyancing relates. So a survey is only useful if you act on it. Considering the findings carefully, and taking advice where needed, helps you make the most of the information a survey provides.
New-build warranties
New-build homes usually come with a warranty covering certain defects for a number of years, which offers some protection, though a snagging inspection can still be worthwhile to identify issues, as our guide to new-build mortgages explains. So new builds are not quite the same as older homes for surveys. Understanding what a new-build warranty covers, and considering a snagging check, helps protect you when buying new.
The valuation and your mortgage offer
The lender's valuation feeds into your mortgage offer, since the lender lends against the valued amount, so a valuation matching the price supports your borrowing, while a low one can reduce it, as our guide to loan-to-value explains. So the valuation is a key step toward your offer. Understanding its role helps you see why a down-valuation matters and why having some flexibility on deposit or price can be wise.
Worth the investment
For most buyers, a survey is a worthwhile investment, since the cost is small compared with the price of the home and the potential cost of undiscovered problems, as our guide to the true cost of buying relates. So do not skip a survey to save a relatively small sum. The protection and information a survey provides, especially on older or unusual homes, usually far outweigh its cost.
Treat the lender's valuation and your own survey as two separate things doing two separate jobs, and you will neither rely on the valuation for reassurance it cannot give nor skip the survey that could save you a great deal.
In short
A mortgage valuation is the lender's basic check of a property's worth as security, while a survey is a detailed inspection of its condition for your benefit. Surveys range from a condition report to a homebuyer report to a full structural survey, with more thorough ones suiting older or unusual homes. A survey can reveal costly problems and help you renegotiate, and a down-valuation can affect your borrowing, so budget accordingly.
Where to get help and next steps
Read our guides to conveyancing, the application process, and what lenders look at. This is general information, not mortgage, property or financial advice.