Your House Survey Has Flagged Problems. What Happens Next?
You have found a home you like, agreed a price and started making plans. Then the survey arrives, raising concerns about the roof, damp or something you had not noticed during the viewing.
It can be unsettling. Having worked in estate agency before becoming a mortgage adviser, I know how much thought and emotion goes into buying a home.
The next step is to understand what the findings actually mean before deciding whether to proceed, renegotiate or reconsider.
This guide covers standard private purchases in England and Wales.
The lender's valuation and your own survey
The lender's mortgage valuation helps it assess the property's value and suitability as security for the mortgage. It is primarily for the lender's benefit and does not replace a survey carried out for you.
Your own home survey is something you commission and normally pay for yourself. It looks at the condition of the property and can identify defects or areas that may need further investigation.
The level of detail depends on the type of survey and what the surveyor can inspect. RICS Home Surveys are visual inspections and have limitations, so ask your surveyor to explain anything you do not understand.
When should you arrange your survey?
RICS recommends arranging a survey after your offer has been accepted.
That does not necessarily mean you need to book it immediately. You will normally be paying for the survey yourself and it can be a considerable additional cost, so where timescales allow, I generally prefer clients to let the mortgage application and early conveyancing work make some progress first.
For example, it may make sense to wait until the lender's valuation has taken place and your solicitor or conveyancer has received the initial legal paperwork. In some cases, waiting until the formal mortgage offer has been issued may also be sensible.
This can reduce the risk of paying for a survey only for an early mortgage or legal issue to prevent the purchase from progressing.
The important thing is not to leave it so late that there is insufficient time to investigate problems, obtain quotations or renegotiate before exchange.
Ask your surveyor what needs attention
A survey can contain a lot of information and not every item will need immediate action.
Ask your surveyor:
Which issues need urgent attention?
Which are normal maintenance items to budget for?
What needs further investigation before exchange?
If specialist checks are recommended, follow them up at the stage advised by your surveyor.
A mortgage offer is not confirmation that the property is free from defects.
Get a clearer picture of repair costs
If the survey identifies work that may be required, obtain written quotations so you have a clearer idea of the likely cost.
RICS recommends obtaining at least two quotations from experienced contractors before making a legal commitment to buy.
Check what each quotation includes, any exclusions, VAT and additional costs such as scaffolding or access.
It also helps to separate necessary repairs from improvements you would choose to make anyway. Repairing a defective roof is very different from deciding that you would like a new kitchen.
Can you renegotiate the house price after a survey?
Before exchange of contracts, you can ask to renegotiate the agreed price if the survey uncovers significant problems.
The seller does not have to agree, and reopening negotiations can put the purchase at risk.
If you decide to renegotiate, explain your concerns clearly through the estate agent and support the request with relevant survey findings and repair quotations where possible.
It is also worth considering whether the price you originally agreed already reflected the property's condition.
From my estate agency experience, keeping the request clear, evidenced and reasonable gives everyone a better basis for the discussion.
A survey does not automatically entitle you to deduct the full cost of every repair from the agreed price.
Keep the mortgage and legal paperwork up to date
If the purchase price changes, tell your mortgage adviser and your solicitor or conveyancer.
The revised price will need to be reported to the lender so the mortgage can be reviewed and updated where necessary. Your adviser can also confirm whether the change affects your borrowing, deposit or loan-to-value.
If the survey uncovers a significant property issue, ask your adviser or solicitor or conveyancer whether the lender needs to be informed.
If the seller agrees to carry out repairs, ask your solicitor or conveyancer how the agreement should be documented and your surveyor or relevant specialist how the work should be checked.
What if you no longer want to proceed?
Sometimes the survey changes how you feel about the property completely.
Consider whether you can afford the repairs, whether you are comfortable with the work involved and whether the property is still the right purchase for you.
In a standard private sale in England and Wales, the purchase becomes legally binding when contracts are exchanged. Before exchange, you can usually withdraw, although you may still have survey, legal or other costs to pay.
If you are considering withdrawing, speak to your solicitor or conveyancer about your particular circumstances.
How Healthy Financial Services can help
My estate agency background informs the property buying support I provide alongside mortgage advice.
That can include helping clients understand the wider buying process, consider survey findings and approach property negotiations where appropriate.
Technical assessments and repair advice belong with the surveyor or relevant specialist. Legal advice belongs with your solicitor or conveyancer. My buying support does not replace either.
If you are buying in Reading, Berkshire, Oxfordshire or Buckinghamshire, you can contact Healthy Financial Services to discuss your plans and the support available.
This article is for general information only and does not constitute personalised mortgage, legal or surveying advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.
