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Mortgage Valuation
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A
mortgage valuation is an inspection carried out on behalf
of your mortgage lender to determine the amount and
terms of a mortgage offer. Your
mortgage lender will probably ask you to pay for the
valuation and will send you a copy of the report.
A
mortgage valuation is not a survey. It is a limited
inspection to identify problems that affect the security
of your mortgage lender's loan. A
property can have defects that are critical to a prospective
buyer, but are not of concern to the mortgage lender
and therefore won't appear in a valuation report. That
is why you should not rely on the information provided
by a valuation when deciding whether or not to purchase
a property.
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RICS
Homebuyer Survey and Valuation (HSV)
An
HSV is a service carried out to a standard format, defined
by RICS (Royal Institution of Chartered Surveyors),
and is designed as an economy package primarily for
properties built after 1900, which are of conventional
construction and in reasonable condition.
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An
HSV includes the following information :
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The
properties general condition |
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Any
significant defects, in accessible parts of the
property, which may affect its value. |
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Urgent
and significant matters that need assessing before
entering into exchanging contracts (or before making
an offer in Scotland) including recommendations
for any further specialist inspections. |
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Results
of testing walls for dampness and timbers for damage
including woodworm or rot |
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Comments
on the existence and condition of damp-proofing,
insulation and drainage (although the latter will
not be tested) |
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The
recommended reinstatement cost for insurance purposes
(the anticipated costs of re-constructing a building
in the event of damage by an insured risk e.g. Fire)
this is not the same as the market value of the
property |
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The
value of the property on the open market |
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An
HSV is not a detailed survey of every aspect of the
property and focuses only on significant and urgent
matters.
It
assists you in making: a reasoned and informed judgement
on whether or not to proceed with the purchase ; whether
or not the property is a reasonable purchase at agreed
price; assess urgent and significant matters before
you exchange contracts for the purchase.
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