Matthew G. Bray
This type of report can be useful in establishing the correct market value of a property prior to negotiating a purchase, or indeed a sale.Valuations can also be undertaken for a variety of other purposes including taxation, matrimonial/family division, insurance, probate or probate/inheritance tax.
A valuation for mortgage purposes is not a survey. It is a limited inspection of the property that a mortgage lender commissions to ensure that it is suitable security for the money being lent to the purchaser.
Mortgage lenders will probably ask purchasers to pay for the valuation and many will provide a copy of the report, although some will not disclose the full information. It is unlikely that a mortgage valuation will cover items in detail that would be identified in during the course of a survey inspection. There may be significant defects or structural problems that would cost a huge amount to put right- and possibly not appear in a mortgage valuation report.
It is therefore really important that a buyer commissions their own survey so that an informed and reasoned decision may be made regarding the purchase of any property.
An insurance valuation is an estimate of the cost of rebuilding a property for insurance purposes. This type of assessment is completed in accordance with the Building Cost Information Service (BCIS) guidelines as recommended by the Royal Institution of Chartered Surveyors (RICS) and Association of British Insurers (ABI).
It is important to ensure that a building has adequate insurance cover. The cost of rebuilding can often exceed the Market Value of the property, especially older individual buildings. If a building is not adequately covered, it is unlikely that an insurer would fully settle any claim.