In the last blog post, we provided tips to help home buyers with a mortgage to ensure security for their Lenders. We discussed how there are huge benefits to hiring a local and knowledgeable surveyor with a good understanding of lending requirements.
But it’s not just homeowners buying with a mortgage that could benefit from this kind of guidance.
Surveyor Services for Cash-Buyers
Cash buyers can also gain an advantage in the property market by seeking advice from a surveyor with a Lenders’ approach to determining whether a property provides satisfactory or unsatisfactory security.
It’s safe to say that most cash purchasers will want to sell their property on at some time in the future. But if they don’t seek out help from a surveyor when they purchase their property, it’s likely that they will be at a disadvantage to buyers with a mortgage as they will not be aware of any inherent issues that would otherwise be flagged by a residential valuation surveyor and cause the Lender to deem the property as unsuitable security. This would not only restrict the number of potential buyers considerably but is also likely to have an impact on the property’s resale value.
In the previous post, the type of construction and location of a property were referenced as factors that residential valuation surveyors take into account when they determine whether it will be acceptable to a Lender or not. Therefore, a surveyor that doesn’t carry out mortgage valuations is unlikely to be able to spot issues that would instantly raise alarms bells for Lenders.
What Constitutes Acceptable Security For Lenders?
Unfortunately, Mortgage Lenders do not have a unified code of guidance as to what constitutes ‘acceptable’ or ‘unacceptable’ security. Each Lender has different views on what is acceptable and what is not. For example, when a building defect or other issue is noted during an inspection, one Lender might require the residential valuation surveyor to immediately decline the property – whereas another Lender would instead require further investigations to be carried out to assess the extent of the problem. If there is evidence of progressive or structural movement, this Lender would perhaps request a report from a structural engineer prior to the release of funds to purchase the property.
Evolving Lender Guidelines
Amongst the many different Mortgage Lenders out there, there are also widely varying attitudes to other potential issues or building defects, including dry rot, re-roofing and electrical re-wiring. As Lender guidance evolves, it’s clear that even attitudes to previously unspeakable issues as Japanese knotweed can change. And that’s exactly why it pays to appoint a surveyor that’s experienced and already engaged in dialogue with Mortgage Lenders.
Surprisingly, this is not a necessity for home-buyers; a surveyor without any working knowledge of Lender guidance can produce a report for potential homebuyers that will satisfy RICS requirements by providing certain information about the condition of property.
But buyer beware: what this report won’t do is protect the homebuyer from issues which may arise when they come to resell the property.
If you’re looking to buy a property and would like to speak to a surveyor with extensive experience of Lender guidelines and requirements in and around North-West London, please call Hilltop Surveyors on 07932 907267 or email firstname.lastname@example.org