Most frequently asked Questions?

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Why does a lender insist on a Mortgage valuation?

A mortgage valuation is a requirement of the lender to ensure that firstly the property is valued at the least the price you are paying for it. From this figure they can determine whether the amount you wish to borrow is in-line with their terms and conditions and the property is considered to be good security. The lender will have the 'First Charge' or 'Primary Charge' on the property and would therefore have an interest until you have repaid the loan.

The Surveyor will report to lender if there are any major defects and the potential re-sale value of the property should they need to re-sell the property in the event of you defaulting on the loan and the property is repossessed. The valuation fee is paid for by the purchaser and the report is the property of the lender, therefore, you will not usually be able to see a copy - even though you have paid for it.

The initial valuation may highlight structural or areas of concern to the lender which may result in the lender insisting that a more detailed surveyors report is instructed and any specialist report may be necessary. This can often happen if the original surveyor notes in his report if he has noticed, for example severe damp or dry rot. Any costs associated with these reports would need to be paid by you.