Buy to Let property inspections
What’s right for my client?
The mortgage valuation
The mortgage valuation is solely for our purposes and is used to ensure that the property provides sufficient security to lend.
It important that your client is aware that the valuation IS NOT A SURVEY and does not provide any indication whether the property is worth what is being paid for it, nor does it indicate any necessary repairs or defects. We would strongly recommend that your client obtains a more detailed inspection of the property such as a HomeBuyer Report or Building Survey (see below).
HomeBuyer report
We can arrange to carry out a HomeBuyer Report for your client at the same time as the mortgage valuation. This report is designed to focus on defects and problems which are considered urgent or significant. A HomeBuyer Report is suitable for properties which are of standard type and construction and appear to be in reasonable condition. Your client will pay us the standard mortgage valuation fee but pay the cost of the homebuyers valuation fee directly to the valuer. Before the valuer carries out the Homebuyers Survey, they will contact your client to discuss the scope of the inspection and cost.
Building Survey
This type of survey is suitable for all residential properties but may be particularly applicable for period properties, those with extensive accommodation or in a particularly poor state of repair. It can be tailored to your client’s requirements but is a detailed report covering all major and minor defects. There is no standard or scale fee for a Building Survey but the cost can be significantly higher than it is for a HomeBuyer Report.
Although in most cases the cost does not include a mortgage valuation, we can arrange for both to be carried out together. Your client will pay us the standard Mortgage Valuation fee but pay the cost of the Building Survey direct to the valuer. Before the valuer carries out the Building Survey, he will contact your client to discuss the scope of the inspection and the cost.
Important information which may affect your client
It is important to manage your client's expectations regarding the valuation of their property. In the current housing market, whilst property prices in some regions are increasing, in other regions house prices either continue to fall, or remain flat. This is likely to affect the value of property when your clients apply for a mortgage, and potentially your client's choice of mortgage product.
We obtain a mortgage valuation for all house purchase and remortgage applications. In addition, the valuer appointed will provide us with a rental assessment of the property. As such the mortgage valuation will not necessarily be the same figure as the price which someone might be prepared to pay for the property.
This could result in your client's property being valued at less than you told us and may also mean that your client no longer qualifies for a product with a specific LTV. In the event of this happening your client may be able to switch to another product with a higher LTV, or it may mean that we are unable to offer your client a mortgage. If we are unable to offer a mortgage after the mortgage valuation, any product application or valuation fees will not be refunded, so it is essential you are as accurate as possible when providing us with an estimated value of your client's property. (Is your valuation lower than expected?)
There are various websites that provide estimates of current property valuations and house prices and we would encourage you to look at these and explore the rental income and demand for the property before telling us your client's property valuation. This will help to ensure the figure that you provide to us is as accurate as possible and increase the chance that the product you select on application is the one you will be able to proceed with following the application.
