The finance provider applies its own credit, legal and technical policies. This guide helps prepare an instruction; see valuation for financing and mortgage for service scope and deliverables.
Ask the intended user before instructing
Before appointing a valuer, check whether the institution requires an approved panel, template, instruction, validity period or delivery channel. Confirm the exact intended-user name, interest to be valued, required date and application reference. A current report prepared for another user or purpose may not meet its requirements.
Do not assume an institution's name can simply be added after issue as though it were an original intended user. A change of user or purpose requires the valuer's review and may need a new scope or report.
Define the property and interest
State location, property type, area, use, condition and occupancy, and whether the instruction covers land, a building, a unit, a development or a portfolio. Define the interest being valued from available records. The valuer does not give a legal opinion on title validity or mortgageability; those matters belong with the institution and appropriate advisers.
If collateral also includes machinery or equipment, separate it in the schedule and review machinery and equipment valuation, as its data, inspection and markets differ.
Prepare information before inspection
Useful information may include available title records, address, plans and area, permitted or stated use, leases, occupancy and income, development plans, costs and completion status, and intended-user instructions. Disclose gaps or conflicts early.
Arrange access to the relevant scope, identify the site contact, and flag inaccessible areas, safety requirements and material changes in condition, occupancy or scheme because these may affect scope and analysis.
Value, asking price and loan amount are different
An asking price is selected by a seller and may change through negotiation. A transaction price reflects specific parties, circumstances and timing. An opinion of value is tied to a definition, date, assumptions and scope. The provider determines the loan amount using value alongside its policies, lending ratio, affordability, risk and security; a value conclusion does not guarantee approval or the same lending proportion.
From instruction to report
- Review intended-user requirements, purpose, asset and valuation date.
- Agree scope, fees, timetable, information and responsibilities.
- Review documents and coordinate inspection.
- Gather and analyse evidence using appropriate methods.
- Prepare, review and issue the report to the engagement parties.
Timing depends on complete information, access and asset complexity; one programme does not fit every case.
Frequently asked questions
Does a valuation guarantee finance approval?
No. It may be one input. Approval, amount and terms remain for the finance provider under its procedures.
Can a sale valuation be used for a mortgage application?
That should not be assumed. Purpose, intended user, basis, date and scope may differ. Ask the institution and valuer what is required.
Who selects the valuation firm?
This depends on the intended user's policy. Check its panel or appointment process before commissioning work.
Can a development property be valued?
A scope can be considered after reviewing ownership information, plans, permits, costs, completion, assumptions and intended-user requirements. The result or method should not be predetermined.
Prepare the institution's instructions and start
Confirm the institution's requirements, then provide the application reference and available documents without placing sensitive personal data in the initial description.