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SURVEYS There are three different types of survey that give different levels of investigation into the state of the property - all costing different amounts that you, the buyer, pays for. A Valuation Survey : lenders won't give you money until it is completed. This is to assure the lender the property is worth the amount you are borrowing. So if anything should go wrong they will be able to recover the money they've lent you. Home Buyers Valuation & Survey : much the same as above, but it also looks at the property's basic condition and state of repair. A Full Structural Survey : this is much more detailed and as a result will cost a lot more. If the property is very old or in a bad state of disrepair it might be worthwhile to go for this. Some lenders may demand a full structural survey before lending you money. If the survey reveals any nasty shocks, now is the time to reconsider. If you do decide to proceed, negotiate an appropriate price reduction based on quotations as to the cost of what needs to be done. Any major problems could be very expensive to put right and you need to be sure that you can afford it. Your lender may insist, that as a condition of the loan, that remedial work is carried out. Sometimes, lenders may withhold part of the agreed advance unless and until certain work is done. Only then will the lender release the balance of the loan monies. In the meantime, however, you will have had to pay for the stipulated work to be carried out. Such mortgage retentions often mean buyers having to seriously reassess their finances. Finally lenders may refuse to lend you the money, as they could view the property as no longer being of the value agreed. Many lenders are linked to survey companies, they may not always give you the best deal, so shop around. If you have problems with your survey or surveyor you can complain to the Royal Institute of Chartered Surveyors which has an arbitration service.
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