If your Lender has arranged a property valuation, then that valuation is purely for your Lender to be able to assess the adequacy of the Property as security for its proposed loan to you. If the valuer decides the property is not worth what you are purchasing the property for, they may down value the property which means you may need to renegotiate the purchase price. The lender could also decide not to grant an offer on the property, meaning you may need to approach another lender to see if they would be willing to lend. The valuation report is based on a limited inspection and contains much less thorough and detailed advice about the Property than you need as a prospective owner and occupier. The valuation report is not a structural survey which requires a much fuller inspection and gives much more detailed advice about the Property.
A question that is often asked if whether you will need a survey, as well as a mortgage lenders valuation. As often purchasers are happy to proceed with the lender’s basic valuation. We would always recommend that a structural survey is undertaken in addition to the lender’s valuation, as you are not able to rely on the lender’s valuation. The survey can also pick up on issues that may come at a cost to you in the near future, if this is picked up prior to proceeding with a purchase, you can ask the seller to rectify any issues before exchange and completion.
The valuation can also come at a cost to you, which the lender may ask you to pay upfront prior to the valuation or add to the loan. Although some lenders, may offer one valuation free of charge. This differs between mortgage lenders.
Physical ValuationÂ
For a physical valuation the valuer will attend the property, they will attend the property, take pictures and put together a report for the mortgage lender.
Desktop ValuationÂ
If a desktop valuation is completed, this is done completely remote based off information in the local area. This is usually done when there is a new build property, mortgages will be granted prior to the property being signed off by building control and part way through the build, so it may not be safe for the valuer to access the property to complete the valuation.
Drive by valuationÂ
This is often used for a remortgage rather than a new property purchase. This is exactly as described, the valuer will often drive by the property and assess the valuation based off this along with knowledge of the local area. They may have a walk around the exterior of the property and the local area too to assess the value.
