Understanding Property Surveys 📝

When you’re buying or selling a home, one of the most important steps in the process is the property survey. At Edwards & Gray, we know this can be a confusing part of the journey, especially with different levels and outcomes to consider. That’s why we’re breaking down the three main types of surveys, what they involve and how they can affect your sale or purchase.

🏡 Level 1 Survey – Mortgage Valuation

A Level 1 survey, also known as a mortgage valuation, is carried out on behalf of the buyer’s lender, not the buyer. It’s used to confirm that the property is worth the amount being borrowed.

Here’s how it works:

• The lender instructs a surveyor from their panel to carry out the valuation.
• The surveyor may visit the property for a brief inspection (usually around 15 minutes), or carry out a “desktop” valuation using comparable sales data if the buyer’s deposit is substantial.
• The valuation report is sent directly to the lender.

Outcomes can include:

• ✅ Full mortgage approval
• ⚠️ A “down valuation” if the surveyor believes the property is worth less than the agreed sale price
• 🚫 A £0 valuation in rare cases (due to major issues like subsidence or lack of facilities), meaning the lender won’t offer a mortgage

If a down valuation happens, buyers and sellers may renegotiate, try another lender or return the property to market. In cases where the home is deemed unmortgageable, it may only be suitable for a cash buyer.

🔍 Level 2 Survey – Home Buyers Survey

A Level 2 survey is a more in-depth inspection requested and paid for by the buyer. It’s especially popular with buyers who want reassurance before exchanging contracts.

What’s included:

• A thorough visit (usually lasting 1.5 to 3 hours) to inspect visible elements like the roof, windows, drainage, electrics and more
• A clear “traffic light” rating system for condition:

🟢 Green (no issues)

🟡Amber (monitor or minor repairs)

🔴Red (immediate repairs or safety concerns)

• Accompanying photos and written notes

Important to know: Sometimes items will be rated as red (CR3) simply because the property lacks certificates, such as a gas safety certificate or planning permission for an extension. These are usually resolved during conveyancing.

If a Level 2 survey uncovers issues, buyers may:

• Request repairs before exchange
• Negotiate the price to cover unexpected costs
• Proceed regardless if the price is still deemed fair

If no agreement is reached, the sale may fall through.

🧱 Level 3 Survey – Building or Structural Survey

Level 3 surveys are the most comprehensive and typically chosen for:

• Older properties
• Homes in poor condition
• Unique or non-standard construction

What to expect:

• Usually a 2 to 4 hour visit
• In-depth checks such as lifting floorboards, testing moisture levels
• A detailed, written report (no traffic lights here)

These surveys offer deep insight into a property’s structure and potential repair costs. Just like a Level 2 survey, they can lead to renegotiations if major issues are discovered.

🏠 How Edwards & Gray Can Help

We work closely with buyers and sellers to guide them through every step of the property journey and we work with a fantastic local surveyor who we can recommend too! If you’re not sure what to expect or how to handle the outcome of a valuation or survey, we’re here to offer expert advice and support.

Whether it’s helping sellers prepare for inspections or assisting buyers in making informed decisions, our experienced team is by your side from valuation to completion.

📲 Thinking of selling or buying? Get in touch with Edwards & Gray today for honest advice and friendly support at every stage.