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Mortgage Valuation

Most purchasers believe that the lender surveys the property to be purchased for them, and therefore do not have their own survey. This is not correct; the lender has a Mortgage Valuation carried out for themselves, not for you, you will be paying for it; although the cost may be concealed in the fees you will be charged.

The lender has the Mortgage Valuation carried out for two reasons, to make sure there is not a fraudulent application, and if you default the property can be sold to recover their money. The inspection is very brief, as is the report, a copy is sometimes provided to the borrower.

If the mortgage is arranged by the estate agent that is selling the house they will get to know the valuation, and any whether the valuer has spotted any other major issues.

The lender should inform you that the Mortgage Valuation is not a survey, but unfortunately either they do not, or it does not register with the borrower, as most believe that they do not need to have a survey done as they can rely upon the lenders survey.

Your Solicitor should inform you that you should have a survey and not rely upon the mortgage valuation, when this happens it is often late in the day when costs and fees have been incurred; if you do not proceed with the purchase due to an adverse survey you will lose the money you have paid out. It is better to have an early survey, rather than a late one.