Who carries out the valuation
The lender instructs a surveyor from its approved panel, usually a firm regulated by RICS, the Royal Institution of Chartered Surveyors. The surveyor acts for the lender, not for you, and the report is addressed to the lender. You pay the fee, usually upfront.
Because a report is addressed to one lender, it is not normally transferable. Choosing the right lender before the valuation is instructed avoids paying twice.
Market value and restricted-period values
Market value assumes a normal marketing period with a willing buyer and seller. Many bridging lenders also ask for a value assuming a restricted period, commonly 90 days or 180 days. These reflect what the property might achieve if it had to be sold quickly, and are often lower than market value.
Some lenders lend against market value, others against the 90-day or 180-day value, particularly for specialist property, land or larger loans. The figure used makes a real difference to the maximum loan, so it is worth knowing in advance which basis a lender applies.
Types of valuation
- Full inspection: the surveyor visits, inspects and reports, the standard for most bridging
- Desktop or drive-by: a valuation from data and an external view, used by some lenders on standard property at lower loan to value
- Automated valuation: a data-driven figure, used selectively on straightforward cases
- Development or works valuation: the current value and the gross development value after works, with a review of costs
- Commercial valuation: based on rents, yields and lease terms, or trading for specialist property
Valuing works and development
For refurbishment and development, the valuer reports on today's value and the value once the works are complete, the GDV. The GDV relies on comparable sales of finished properties, and the valuer will test your assumptions. See gross development value explained.
If the valuation comes in low
A down valuation reduces the maximum loan. Options include putting in more of your own money, renegotiating the price, offering additional security, or approaching a lender that uses a different valuation basis. If you think the valuer has missed relevant evidence, you can ask the lender to put comparable sales to the valuer. Lenders will consider a well-evidenced challenge, but the decision rests with them.
Testing your figures before you apply reduces the risk. You can compare lenders, and their loan to value limits, on Instant Quotes.
Preparing for the valuer's visit
The valuer has a short time on site and relies on what they see and are told. To help them reach a fair figure:
- Make sure access is easy and every room, outbuilding and part of the site can be inspected
- Have the tenure, lease details, floor areas and any tenancy information ready
- For works cases, provide the schedule of works, costs, drawings and planning documents
- Share comparable sales you are relying on, with addresses and dates
- Point out improvements that are not obvious, such as a new roof or rewiring
The valuer is independent and will form their own view, but complete information reduces the chance of a cautious figure based on assumptions.
Common questions
What is a 90-day value?
The surveyor's view of what a property would achieve if sold within 90 days. It is often lower than market value, and some lenders lend against it.
Can I use my own valuation for a bridging loan?
Usually not. Lenders instruct their own panel surveyor, although some accept a report from a panel firm instructed for a different purpose if it can be readdressed.
Can I challenge a down valuation?
You can ask the lender to put further comparable evidence to the valuer. The lender decides whether to accept any change.
This guide is for general information only and should not be treated as legal, tax or financial advice. Lender requirements depend on the property and your circumstances.
