Is it part of the Home Report?
The Home Report by law consists of three documents: the Energy Report, Single Survey and Property Questionnaire.
A Mortgage Valuation Report (MVR) is a limited inspection of a property required by the banks and building societies to assess the suitability of the property, in its present condition for mortgage purposes. It doesn't report in detail the condition of the property unless it is so severe it may affect the value or saleability. The surveyor reports what can be seen within the property and its general condition.
Who is it intended for?
The Mortgage Valuation Report is for the benefit of the purchaser and their mortgage lender. It is designed to give enough information for their lender to decide whether the property is safe to lend on, and up to what amount.
When would you require a Mortgage Valuation Report?
A Mortgage Valuation Report would typically be required when you have agreed a sale with a potential purchaser and they require mortgage funding to complete the purchase. The Mortgage Valuation Report will only be valid for 12 weeks which means that after this period, you will need to purchase a new Mortgage Valuation Report (please note, this does not mean the whole Home Report) and pay the additional cost for this. You will have to pay for a new Mortgage Valuation Report every 12 weeks until your property is sold.
Who should pay for a Mortgage Valuation Report?
You have no legal requirement or obligation to pay or instruct a Mortgage Valuation Report to sell your property. There are three approaches to the issue of who pays for a mortgage valuation.
1. You - A Mortgage Valuation Report is instructed by you at the same time as obtaining your Home Report. You then agree to keep this document valid for the duration of the sale of your property until the sale is concluded. View diagram »
2. Buyer - You instruct a Home Report to enable the sale of your property. When you find a purchaser, they instruct their own Mortgage Valuation or as if often the case; receive a free valuation from their lender. View diagram »
3. You & Buyer - You instruct a Home Report to market your property. When you find a purchaser, you negotiate with them to pay the costs or a proportion of the Mortgage Valuation Report. View diagram » Doing this removes the unnecessary cost of purchasing a new Mortgage Valuation every 12 weeks, especially in the current market where it could take over a year to sell your home.
Purchasing a Home Report with a Mortgage Valuation is entirely your choice. This website is aimed at allowing you to make an informed choice, a choice that is not driven by someone else's desire to make a sale or relieve you of your hard earned money. You may want to ensure that your Home Report comes with a Mortgage Valuation from the start and will be accepted by all major lenders regardless of the lender your purchaser chooses to obtain funding from. This is fine as long as you are fully aware of all the issues and costs involved and you have made that informed choice.
A number of lenders insist upon their own Surveyors to carry out the Mortgage Valuation Report. You will hear the term panel used a lot in relation to lenders and acceptable surveys. Lenders typically have a panel of surveyors; this is a list of firms it will accept valuations from. Some lenders may view as we do that a Mortgage Valuation provided by the Seller of a property for the purchaser's lender is a massive conflict of interest and insist on an independent valuation. Furthermore, the majority of mortgage / remortgage products available on the market at the present time will offer your purchaser a free or heavily discounted valuation report. You will not know at the start of your sale which lender your purchaser may use for funding, if they need funding at all or if they will get a free valuation. It may be that the costs of obtaining the valuation at the start by you are unnecessary.
Please be aware, if you find that the Mortgage Valuation provided cannot be used by the purchasers lender, you will receive no refund of the fees paid.
The important thing to bear in mind is that you are under no legal obligation to provide a Mortgage Valuation Report. It is your choice. By purchasing a Home Report with MVR you may face unnecessary additional costs. There is no Chartered Surveying firm that produces a MVR acceptable to every single lender and mortgage lenders are constantly reviewing their lending panels and criteria.
I am told that obtaining a Mortgage Valuation at the start will make the completion of my sale much smoother.
Again, in today's market; no Chartered Surveyor of any worth should be guaranteeing you that you will receive the same valuation on a Mortgage Valuation Report at the beginning of your sale as at the end.
Every Chartered Surveyor providing Home Reports must be a RICS registered valuer. They must all follow the same professional standards and rulebooks.
It may take several months to over a year to sell your property and in today's climate, the valuation given at the start of your sale may well vary by the time you agree a sale.