What To Expect From a Property Valuation

22 July 2022

Shirley Mushet, ESPC independent mortgage adviser, has given us her insight into what lenders take into consideration within the valuation process. Currently, we are experiencing a buoyant market, where properties are often selling more than their Home Report valuation. 

 

First, consider the Home Report valuation. A lender will only lend up to the Home Report valuation, and not what you have paid for the property. If you choose to offer more than this, you need to account for it within your own funds. Equally, if you manage to purchase for below the valuation, the lender will use the purchase price rather than the Home Report valuation for the mortgage offer.

 

So, how does this work? For example, if a property has a Home Report valuation of £200,000 and is purchased for that exact amount. The buyers deposit will be £20,000 (excluding any fees). In this case, they could be offered a 90% loan to value mortgage, with the 10% deposit. 

 

If you pay £210,000 for the same property, you will need to supply the £10,000 over the Home Report valuation, which means, you are then left with a £10,000 or 5% deposit and as such, are looking for a 95% loan to value mortgage. 

 

If you are fortunate enough to pay under the Home Report value, the lender will use the purchase price as the value, NOT the Home Report value. In the above example, if an offer of £190,000 was accepted, this becomes the value and NOT the £200,000 Home Report valuation. 

 

However, this isn’t the only element considered by lenders when considering a mortgage application. Bear in mind that all lenders differ on the type of property they want to lend money on. They want to know the property they are mortgaging is desirable (resaleability) and each lender has different views on this.

 

What do lenders look for in a property?

 

Firstly, it must be habitable which generally means wind and watertight with a working kitchen and bathroom. Lenders tend to also have individual views on the construction of a property and whether it is something for them, such as; flats, roofs, multi storey blocks, steel frames, concrete construction and other non-traditional construction types. Furthermore, lenders will also have differing views on properties above or adjacent to commercial premises.

 

The property’s condition can also cause concern for a lender. For example, if a property is showing signs of structural damage, damp or infestation they may want a specialist report undertaken and could decide to retain money until work is carried out or, they could decide to not lend at all. 

2022

How Can I Add Value to My Kitchen? 2022-08-05 How Can Buyers Gain an Edge in a Busy Market? 2022-08-04 A Guide to Understanding EPC Certificates 2022-07-26 What To Expect From a Property Valuation 2022-07-22 Speeding Up the Conveyancing Process 2022-07-18 Housing Market Predictions 2022-07-07 How Does an EPC Rating Affect My Mortgage? 2022-07-04 Most Common Property Questions Answered 2022-06-23 Overpaying a Mortgage 2022-06-17 The Buying Process in Scotland 2022-06-14 What Happens as a Home Valuation? 2022-06-09 What is a Closing Date? 2022-06-03 Here's What You Need to Know About Downsizing 2022-05-30 What Does 'Property Chain' Mean? 2022-05-26 Why You Need the Right Insurance When Taking Out a Mortgage 2022-05-24 Staging Your Home for Selling 2022-05-17 Buying a House in Cash 2022-05-10 The Selling Process in Scotland 2022-05-05 Strongest Ever Spring Sellers' Market 2022-05-03 Understanding a Home Report 2022-04-26 How Will the Cost of Living Crisis Affect the Property Market? 2022-04-22 A Guide To Buying a House or Flat in Scotland 2022-04-18 Thinking of Buying an Investment Property? Here's What You Need to Know 2022-04-12 What's Happened to the Property Market Since Covid-19? 2022-04-06 Energy-Saving Tips For Your Home 2022-04-01 Understanding Your Property's Value 2022-03-28 Why It's Best To Sell Your Home Before Buying Your Next Property 2022-03-24 The Differences Between Buying and Selling Property in Scotland and England 2022-03-21 The Differences That Come with Using a Solicitor Estate Agent 2022-03-16 Want To Sell Your Home Fast? Here's Our Top Tips! 2022-03-10 Fixed Rate or Variable - What's the Best Mortgage? 2022-03-08 Building Survey's - What are they? 2022-03-03 Questions every first-time buyer should ask! 2022-03-01 What Is Required for a Successful Mortgage Application? 2022-02-22 Your Offers Been Accepted - What Happens Next? 2022-02-15 Joint Property Ownership - Everything you need to know 2022-02-09 Mortgages in 2022 - What Could Happen? 2022-02-05 4 Tips for Saving a Deposit 2022-02-01 Reminder - The Law on Fire Alarms is Changing 2022-01-25 The 2022 Scottish Property Market - What Will Happen? 2022-01-21 Top Mortgage Tips for First Time Buyers 2022-01-18 What's the difference in using a solicitor estate agent? 2022-01-11

2021

How the Scottish Housing Market has Changed Over the Last 50 Years 2021-12-27 Can I Get a Mortgage Without Permanent Residency? 2021-12-20 Property Conversion - Everything You Need to Know 2021-12-15 Asking Price - Everything You Need to Know 2021-12-06 Using a Home Report When Buying a Property 2021-11-29 What is Shared Ownership? 2021-11-24 What You Need To Know About Getting a Mortgage When You're Self-Employed 2021-11-19 So, What Is a Mortgage Agreement in Principle? 2021-11-08 Why You Should Use a Solicitor Estate Agent When Moving House 2021-11-03 Thinking of buying a listed property? Here's what you should know 2021-10-26 Everything You Need to Know About EPC Registers and Certificate Guides 2021-10-25 How much can I afford to borrow? 2021-10-20 Nine Steps to Selling Your Home 2021-10-18 Climbing the Property Ladder 2021-10-11 Fire Alarm Laws are Changing in Scotland 2021-09-27 Research You Should Conduct Before Buying a Property 2021-09-20 The LIFT Scheme and How You Can Use It To Buy a Home 2021-09-17 The Latest Scottish Government Guidance on Property Viewings 2021-09-10 NORMAL SERVICE BEING RESUMED IN A BUOYANT HOMES MARKET 2021-08-31 Should You Refurbish Your Property? 2021-08-18 Preparing Your Home for a Successful Sale 2021-08-13 Mortgage Interest Rates - What are they? 2021-08-09 Helping You Consider the Right Location for Your Next Move 2021-07-26 Tips For First Time Buyers To Help Get Them on the Property Ladder 2021-07-19 Scotland's First Home Fund is Closed, What Other Schemes Can Help First Time Buyers? 2021-07-12 Retirement Interest Only Mortgages - What You Need To Know 2021-07-07 How the UK Mortgage Market Has Changed Due to Coronavirus 2021-06-30 How To Boost Your Mortgage Deposit 2021-06-21 New Rules For Fire and Smoke Alarms in Homes Across Scotland 2021-06-17 Preparing To Put Your House on the Market in 5 Key Steps 2021-06-14 How Much Mortgage Can I Get For My Salary? 2021-06-09 How Long Does it Take to Buy Your First House or Flat? 2021-06-02 Is Your House Ready to be Sold?: House Selling Checklist 2021-05-31 What is a Mortgage Agreement in Principle? 2021-05-25 All You Need To Know About EPC Registers and Certificates 2021-05-19 Making the Most of House Viewings 2021-05-12 How the Coronavirus Pandemic has Changed the Priorities of Scottish Home Buyers 2021-05-05 Top Tips on Preparing to Buy a House 2021-04-26 What You Need To Know About Overpaying a Mortgage 2021-04-21 Advice on Buying a Property During the Covid-19 Pandemic 2021-04-14 How the UK Mortgage Market Has Changed Due to the COVID-19 Pandemic 2021-04-13 Scotland's First Home Fund: Applications Now Closed 2021-04-09 Scotland's First Home Fund 2021-04-07 Scottish Stamp Duty Holiday: How Did LBTT Change and When Did it End? 2021-04-06 Property Questions Answered 2021-04-02

2020

Tayside housing market back with a bang 2020-12-10 Digital Guide 2020-05-27

2019

The property market across Scotland - Quarter Two 2019 by SPC Scotland 2019-10-16 LORD PROVOST OPENS NEW-LOOK CENTRE 2019-09-17 The Dundee property market 2019-06-24 A 427 MILLION BOOST FOR THE HOMES MARKET 2019-01-21

2018

Budget Proposals to the ADS Rate 2018-12-18 BUYING OR SELLING GET THE FACTS 2018-08-24 BUYING INTO LIFE ON THE WATERFRONT 2018-08-23 As moving day looms dont panic just prep 2018-05-17 THE BEST OF BOTH WORLDS FOR HOMEBUYERS 2018-04-03 HOME COMFORTS FEND OFF BEAST FROM THE EAST 2018-03-07 V&A DATE MILESTONE FOR THE WATERFRONT 2018-03-02 FLAT SALES EDGE TOWARDS £100 MILLION 2018-01-23 PROPERTY SALES PUSH TOWARDS THE £440 MILLION MARK 2018-01-08

2017

FESTIVE GREETINGS FROM ALL AT THE TSPC 2017-12-19 PUTTING DUNDEE ON THE MAP 2017-11-15 TIME TO BRING YOUR HOME TO THE MARKET 2017-11-01 AUTUMN IS A GOOD SEASON FOR SELLING 2017-10-17 HIGH PROFILE OPTION FOR TOP PROPERTIES 2017-10-09 MARKETING YOUR PROPERTY TO THE MAX 2017-08-21 DO YOU LIKE TO BE BESIDE THE SEA? 2017-06-15 TIME LOOMING FOR A RE-MORTGAGE 2017-06-09 HAS THERE BEEN A BETTER TIME FOR A HOUSE SALE 2017-05-26 TIME TO PUT YOUR FLAT ON THE MARKET 2017-05-04

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