When you buy a house and need a mortgage, a lender will require a mortgage valuation. The valuation advises the lender of the value of a property and of any characteristics of the property including significant defects which might affect its value as security for the proposed loan. They are not surveys, which have more detail, but are for the benefit of the lender, rather than the purchaser.
The mortgage valuation involves a brief inspection (usually less than 20 minutes in length) and should not be confused with a survey. The report is for the lender and is very much a pro-forma in style and is usually only two to three pages in length. Many, but not all lenders provide a copy of the valuation report or an extract from it to their loan applicant.
If you have a query about a lender’s mortgage valuation, you should contact your mortgage provider to see if it is willing to raise the matter with the valuer.
The process an assessment of the property structures and assets including grounds, but more importantly, its locality, social amenities, surrounding property and the market history of the area which together with other aspects is used to form an opinion of what the property might achieve in price when placed on the open market for sale.
This price can vary wildly from area to area and construction type to construction type as well as aesthetic appearance, current fashion, community perception and crime figures to name a few.
The arrived at figure can be affected in the short term by Politics, Finance, Employment etc which may subsequently require a re-assessment of the valuation.
This process is also used by Landlords in order to calculate a “Rental Value” and “Rent Review”.