Will The Lender Value My House

Will the lender always value the property when purchasing?

If you are applying for a new mortgage on a property the lender will always do a valuation but the type of valuation can differ. Some lenders will do a physical valuation where they appoint a valuer to go to the property and do a valuation for the lenders purpose. Once the valuation is done they will then send the report to the lender for the lender to assess.

Sometimes lenders will do what is called a 'desktop valuation', where they will not physically go to the property but they will use a surveyor to sit and compare against other properties in the area and old listings. Sometimes lenders will try to do a desktop valuation however they may then request a physical one if the data they have is very old and likely to be very inaccurate.

Lenders can also do an Automated Valuation also known as AVM which is the same as desktop valuation but all done by an automated system. Although this is a lot quicker than a physical valuation, it can sometimes cause the property to be down valued as it is not always a true indication of the properties value and any work done on it.

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It is important to know that these valuations are just for the lender purpose and not for the purchases so it is important to consider having a private valuation or Homebuyers Report done by a registered chartered surveyor to ensure the property you are purchasing is priced right, safe and in good condition. We can organise this for you with our local Nottinghamshire based surveyors.