Mortgage Valuation Report

We are legally obliged to assess the value of the property for mortgage purposes and may obtain a valuation report (a Mortgage Valuation Report). However, this report will not be adequate for the purposes of someone wishing to purchase and live in the property.

The report may not reveal serious defects and there may be important inaccuracies or omissions. It is not a Structural or Building Survey Report and will be based upon a limited inspection.

We always strongly advise applicants to obtain their own report on the condition and value of the property, based on a fuller inspection. Applicants can make their own arrangements or, if they prefer, can choose a Homebuyer Report.

Where a property is valued at below the purchase price, and the loan is affected, a copy of the report can be provided to the customer, who will then have the option of a reduced loan or renegotiation of the purchase price. The valuation fee is non-refundable once a valuation has been carried out.

Homebuyer's Report

A Homebuyer's Report provides more detailed information for applicants on the condition of the property. The valuer will obtain an authority to undertake the Homebuyer report direct from the applicants.

A Homebuyer report may be unsuitable for some older or large properties, but the valuer will inform the applicants if this is the case.

The report will provide the applicants with a concise report on the state of repair and condition of the property, together with an opinion of its open market value. The applicants will also be advised as to whether the agreed purchase price is realistic in all the circumstances.

Major defects noted in the building will be listed in general terms, with recommendations which may involve seeking specialist services. The report will not list every minor defect observed and it must be emphasised that it is not a structural or building survey. The valuer will forward the report direct to the applicants.

We do not need to see the Homebuyer Report as we will obtain a separate Mortgage Valuation Report usually from the same valuer.

New Build Flats & Houses - Valuations

• The maximum loan to value on New Build Flats is 75%.
• The maximum loan to value on New Build Houses is 85%.

Please ensure you refer to the current product rates as product LTV restrictions apply per application type. Products may not always be available up to maximum LTV lending limits above.

Nationwide instructs it's valuers to value all new properties (flats, houses and maisonettes) on an 'as new' basis.

New properties may include a new build premium. A new build premium is the additional value in a property that diminishes once the property is occupied.

The definition of a 'new flat or house' includes maisonettes and means one that has not been occupied within two years of construction, conversion or refurbishment. This includes properties being bought off plan.

Home Reports in Scotland - Single Surveys

From 1 December 2008, all vendors of a residential property in Scotland must provide potential purchasers with a copy of a Home Report Pack which will contain a Single Survey, Energy Report and a Property Questionnaire. A generic Mortgage Valuation report will also be included.

Transcriptions

From 1 February 2010 the only transcriptions accepted are those arranged under the Scottish Home Report (single survey) process for purchase mortgages, introduced in December 2008, and those relating to new build properties in Scotland. Transcriptions are not accepted for remortgage applications.

For acceptance of these transcriptions the following points apply:

• The valuer providing the transcription must be the individual who prepared the original Home Report or inspected the new property.
• The firm employing the valuer must be on the Nationwide panel.
• The valuation figure must be no more than 90 days old.
• Where the valuation figure is a result of a 'refresh' of the original Home Report, it must be based on an internal/external inspection that has taken place within the last 90 days.
• The Valuation figure in any Scottish new build transcription must be a resale valuation and the report must contain the key statement confirming this.

The transcript will only contain the same information and valuation figure as the Single Survey. A valuer may however, at the request of the seller, update (‘refresh’) the report which could result in changes, including the valuation figure. To refresh a report the valuer must re-inspect the property.

Nationwide will instruct valuers to forward transcripts only if they have inspected (or re-inspected) the property within 3 months from receipt of our instructions.

Instructing valuations

• Where a Single Survey has been prepared by a panel valuer, request a transcription via NFI Online or MTE in the usual way.
• If the valuer is not on our panel the transcript request will be rejected by Countrywide surveyors.
• If when the instruction is received, a transcript cannot be issued, the request will be rejected by Countrywide surveyors.
  

Where a transcription cannot be provided we will let you know and we will arrange a valuation subject to payment of the relevant fee.

Exempt properties

The following properties are exempt from the requirement to have a Home Report Pack and will not therefore require a Single Survey:

• New and newly converted properties that are to be occupied as residential units for the first time.
• Properties already being marketed before 1 December 2008.
• There are no changes to the processing of these applications.