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Does a Cash Buyer Need a Survey?

Posted 25 October 2016 by Ben Salisbury

If you are buying a property with your own money and not borrowing from a lender, do you need to conduct a range of surveys and a valuation?

When you move into a new home, it is normal to carry out the necessary checks through a range of surveys to ensure that there will not be any unexpected problems with your new home.

However, this is normally a requirement of a lender. However, if you are a cash buyer and don’t need a lender, in theory there is no need to carry out the survey, valuation and other checks.

There is no legal requirement to get a survey and valuation conducted on the property if you are not borrowing any money.

A lender insists a survey is carried out so that they can be sure they will be able to get their money back from the sale of the property if the borrower defaults on their mortgage payments.

A seller of a property is not required to provide detail about any defects the property may have, so it is normally prudent for the buyer to conduct a survey and for their solicitor to carry out enquiries and searches before reaching agreement on purchasing the property.

Typically, older properties will be more likely to need a survey and a range of checks as through time they are more likely to have problems, though many older properties were built better and last longer.

When do you need a survey if you're a cash buyer?

You need a survey when you borrow money. So, even if you are a cash buyer, if you want to remortgage in the future, you will need a survey carried out as part of the requirements of the lender.

The purpose of a survey

Most people think that a lenders standard valuation of a property is sufficient but it makes no assessment of the building’s state of repair.

Having a survey carried out on a new property should enable the buyer to make an informed decision on whether to go ahead and purchase the property and to decide if it is being sold at a reasonable price.

The survey will show the buyer whether there is a need for repairs or replacements to the property and if there are any defects, visible or hidden, and whether you need expert advice on a specific problem.

A survey will also establish how the property has been built, what materials have been used and how these are likely to perform in the future. The survey will also detail what the repair options are if repairs are needed and explain what the possible consequences are of not acting.

In terms of a valuation, if you are satisfied with the price, it may not be necessary to get a surveyors’ valuation, though this assumes there are no major problems with the property, which, if there are, a surveyor would be able to incorporate into the valuation.

The surveyor may charge a lower fee for carrying out work on a newer property, however bearing in mind many people would not buy a used car for a few thousand pounds without having it checked, it is normally wise to get advice from an expert on a property that will cost you several hundred thousand pounds.

What are the normal searches?

The most common searches are a local search, an environmental search and a drainage and water search. Other searches include planning, building regulations searches or listed building consents, searches regarding road or rail schemes or even for tree preservation orders.

There are a range of surveys that you can get done, ranging from basic to comprehensive, and reflected in the price.

A condition report is an entry level survey which uses a traffic light system to assess aspects of the property. It may not provide full details or recommendations on problems found. It costs around £300.

A snagging survey will find any minor faults in a new-build home like poor quality plastering. This is ideal for a new-build home which already has a 10-year guarantee from the National House Building Council. A snagging survey normally costs usually between £300-£600.

A homebuyer report offers detailed information and may include further recommendations or a fuller explanation of any problems found. It costs about £500.

A building survey is the most comprehensive survey and is important for an older, listed or period building. It provides detailed information about the condition of a home and offers advice on any repairs or maintenance needed. It costs around £1,000.


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