Page 29 - ESPC July 2022

EXPERT ADVICE

What to expect from
a lender’s property

valuation

Shirley Mushet, an ESPC Mortgages
independent mortgage adviser, gives
insight into what lenders consider in
the valuation process.

e are currently experiencing a if an offer was accepted at £190,000 this The condition of a property can also cause
buoyant market, where properties becomes the value NOT the £200,000 concern for a lender. For example if a property
Ware often selling in excess of their Home Report valuation. is showing signs of structural movement,
Home Report valuation. damp or infestation they may want a specialist
However, this isn’t the only element report undertaken and could decide to retain
The first thing to consider is the Home Report considered by lenders when considering a money until work is carried out or may decide
valuation. A lender will only lend up to the Home mortgage application. Keep in mind that all not to lend at all.
Report valuation, and not what you have paid lenders differ on the type of property they
for the property. If you offer more than this, you want to lend money on. They want to know What’s the next stage? At ESPC Mortgages
need to account for it within your own funds. that the property they are mortgaging is we can help you check which lender would
Equally, if you manage to purchase for below desirable (resaleability) and each lender accept an application on a particular
the valuation, the lender will use the purchase differs in their view of this. property. As such, if you are happy with the
price rather than the Home Report valuation for home valuation, and a mortgage lender has
their mortgage offer. What do lenders look for in a property? First confirmed the potential to lend you can go
of all, it must be habitable which generally ahead and make an offer.
But how does this work? For instance, if a property means wind and watertight with a working
has a Home Report valuation of £200,000 and kitchen and bathroom. Lenders will also Get mortgage advice today
is purchased for £200,000. The buyer has a have individual views on the construction
deposit of £20,000 (this excludes any fees). In of a property and whether it is something ESPC Mortgages is a team of independent
this case they could be offered a 90% loan to for them such as flat roofs, multi-storey mortgage advisers based in Edinburgh. With
value mortgage, with the 10% deposit. blocks, steel frames, concrete construction many years of experience, they are well-
and other non-traditional construction types. placed to help you purchase your property.
If you pay £210,000 for the same property, you In addition, lenders will also have differing Get in touch with the team on 0131 253 2920
or fsenquiries@espc.com.
will need to supply the £10,000 over the Home views on properties above or adjacent to
Report valuation, which means you are then commercial premises.
left with a £10,000 or 5% deposit and as such
are looking for a 95% loan to value mortgage.
The information contained in this article is provided in good HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP
If you are lucky enough to pay under the faith. Whilst every care has been taken in the preparation of the UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS
Home Report value, the lender will use information, no responsibility is accepted for any errors which, SECURED AGAINST IT.
despite our precautions, it may contain.
the purchase price as the value NOT the ESPC UK LTD is an appointed representative of Lyncombe
Home Report value. In our example above, The initial consultation with an adviser is free and without consultants which is authorised and regulated by the Financial
obligation. Thereafter, ESPC Mortgages charges for mortgage Conduct Authority.
advice are usually £350 (£295 for first-time buyers). YOUR
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