Basic Valuation Report

Your lender will insist on a valuation before approving a mortgage, to reassure them that the property is worth the money that you want to borrow. However, although this brief check is carried out by a qualified surveyor, it's merely a cautious assessment of the value of a property and not a full survey. It would be a huge risk to rely solely on a valuation report, as it's no guarantee that a property is structurally sound.

How Much Does it Cost?

The cost of carrying out the valuation (which may in some cases be refunded when the mortgage is finalised) varies, depending on the lender and the value of the property, but will be approximately £200 for a house worth £100,000 to over £400 for house worth more than £500,000.

What Does the Valuation Take Into Account?

The valuation report will take into account:

• the location of the property
• its condition
• the market value of properties in the area
• its resale potential
• accommodation and land
• neighbourhood amenities
• traffic density

What Happens if the Property is Overpriced?

If, in the surveyor's opinion, the property is overpriced, you have 3 options:

1. You can enter into negotiations with a revised offer.
2. You can back out and look for another property.
3. You can find the extra money, taking a risk that you might not get your money back when you come to sell.

Equally, bear in mind that if you're putting in a sizeable proportion of the asking price yourself, you might want to have the valuation confirmed by second opinion, as it will be your money that is at risk if the valuation is overgenerous.