- Common valuation types
- Full physical, desktop, AVM
- Typical turnaround
- 3-10 working days
- Common downvalue range
- 5-10% below asking or agreed price
- Who pays
- Borrower, via fee at instruction
Types of valuation
A full physical inspection by a RICS surveyor is standard for higher-value or complex commercial property. Desktop valuations, based on comparable data without a site visit, are increasingly used for lower-risk residential-style security and smaller bridging loans. Automated valuation models (AVMs) are used sparingly, mainly for low-LTV residential security.
What valuers actually assess
Beyond market value, valuers report on condition, structural issues, environmental risk and, for investment property, rental value and tenant covenant strength. For development finance, they also assess gross development value based on the completed scheme.
- Market value in current condition
- Estimated rental value for investment security
- Structural or environmental red flags
- Gross development value for build projects
When a valuation comes in below expectation
A downvalue doesn't automatically kill a deal — lenders size the loan against the lower figure, which usually means either a larger deposit, a reduced loan amount, or renegotiation with the seller. Being prepared for a 5-10% variance from the outset avoids the shock derailing the transaction.
Instructing the valuation efficiently
For time-sensitive deals like auction purchases, instructing the valuer on day one — often before legal work even completes — is one of the most effective ways to protect a tight completion date, since valuation slots can be booked out for a week or more in busy areas.
Frequently asked
Who chooses the valuer?
The lender instructs and selects the valuer from their approved panel, even though the borrower typically pays the fee upfront.
Can I challenge a valuation I disagree with?
Yes, though successfully challenging one usually requires new comparable evidence rather than simply disagreeing with the figure — lenders will consider a formal appeal with supporting evidence.
Does a desktop valuation cost less than a physical one?
Generally yes, and it's also faster, which is why lenders use it where the risk profile allows, particularly on smaller bridging loans.
How long is a valuation valid for?
Most lenders treat a valuation as valid for three to six months; beyond that, a revaluation or update letter may be required before completion.
Does the valuer know what I've agreed to pay?
Yes, this is usually disclosed as part of the instruction, but valuers are required to assess independent market value rather than simply confirm the agreed price.
Worried about a downvalue derailing your deal?
Talk to us before instruction and we'll help set realistic expectations and choose a lender whose panel fits the property.
Related reading
Situations this applies to
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