Rock concert crowd with hashtag not all suits and ties

All About Property Valuations

Last updated: November 13, 2023

Property Valuation

When it comes to buying or selling a property, understanding the intricacies of property valuations is crucial. Whether you’re a first-time buyer or a seasoned real estate investor, navigating the world of mortgage valuations and property assessments can be a daunting task. In this comprehensive guide, we’ll delve into the essential aspects of property valuations, answering key questions to demystify the process.

What is a Property Valuation?

At its core, a property valuation is an expert’s assessment of the value of a property. This evaluation is based on a variety of factors, including the property’s condition, location, size, and recent sales data in the area. The ultimate goal is to determine the market value of the property – the price it could reasonably fetch in the current real estate market.

James on computer

What Does a Property Valuation Involve?

A property valuation is a meticulous process conducted by a qualified property surveyor. The surveyor inspects the property, considering both its internal and external features. This involves evaluating the structural integrity, condition of fixtures and fittings, and any potential issues that may affect the property’s value. Additionally, the surveyor takes into account recent sales data and market trends to provide an expert opinion on the property’s value.

How Much Should a Property Valuation Cost?

The cost of a property valuation can vary depending on factors such as the property’s size, location, and complexity. Typically you can expect to pay a few hundred pounds for a standard property valuation. Keep in mind that this cost is a small investment compared to the potential financial ramifications of an inaccurate property valuation.

Do I Have to Get a Property Valuation as Part of the Mortgage Application Process?

Yes, in most cases, a property valuation is a mandatory step in the mortgage application process. Mortgage lenders use this assessment to ensure the property’s value aligns with the requested loan amount. The valuation acts as a safeguard for both the borrower and the lender, helping to prevent overvaluation or undervaluation of the property.

Man in black T shirt working at desk in brightly covered office

What Happens if the Property Valuation is Less Than I’ve Offered for the House?

If the property valuation comes in lower than your offered purchase price, it can have significant implications. Your mortgage lender may only be willing to finance the property up to its appraised value, leaving you to cover the shortfall. This situation could lead to renegotiations with the seller, a higher down payment requirement, or, in extreme cases, the termination of the deal.

What Happens if the Property Valuation is Higher Than My Offer?

While less common, a higher-than-expected property valuation can work in your favour. It means you’re getting a property with a higher market value than the purchase price, potentially building instant equity. However, keep in mind that your mortgage lender will typically base the loan on the lower of the purchase price or appraised value, so your mortgage terms may not change.

How Long Does a Property Valuation Take?

The duration of a property valuation can vary, but on average, it takes a few hours to complete. Factors such as the property’s size, condition, and location can influence the time needed for a thorough assessment. Once the survey is complete, the property surveyor compiles a detailed report that typically takes a few days to reach the mortgage lender.

Members of the Hudson Rose team looking at a phone and smiling under neon sign

How Long Does a Mortgage Offer Take After the Property Valuation?

After the property valuation is complete, the mortgage lender reviews the surveyor’s report and considers it alongside your mortgage application. The time it takes to receive a mortgage offer can vary, but it typically ranges from a few days to a few weeks. This timeline may be influenced by factors such as the lender’s workload, the complexity of your application, and any additional documentation required.

Can a Mortgage be Declined After a Property Valuation?

Yes, a mortgage can be declined after a property valuation, though it’s relatively rare. If the valuation reveals significant issues with the property or if your financial situation has changed since the application, the lender may reassess your eligibility for the loan. It underscores the importance of ensuring that your financial affairs are in order and that the property meets the lender’s criteria.

In the intricate world of property transactions, understanding the nuances of property valuations is vital. From the initial assessment by a property surveyor to the potential impact on your mortgage application, each step plays a crucial role in the homebuying process. By familiarising yourself with the intricacies of mortgage valuations, you empower yourself to make informed decisions and navigate the real estate market with confidence. Remember, a well-informed buyer or seller is better positioned to secure a fair deal and avoid potential pitfalls in the ever-evolving landscape of property transactions.

The Hudson Rose team having fun in front of their Cheltenham branch

Hudson Rose are a team of whole of market mortgage advisors based in Gloucesteshire. They like to do things a bit differently and you won’t find any suits or ties in their colourful offices! Nonetheless they have a plethora of 5 star google reviews and a great reputation for really looking after each and every client. Why not give them a call today to discuss your remortgage options!

And if you’d like some more juicy mortgage info, look no further:

My Savings Are Greater Than My Mortgage: Should I Pay Off the Debt or Keep Saving?

How Your Family Could Help You to Buy a Home in Hereford

Remortgaging in Oxford? To Fix or Not to Fix…?


Hudson Rose Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.
Hudson Rose Services Ltd, trading as Hudson Rose. Registered Office: 7 Bridge Street, Nailsworth, Stroud, GL6 0AA
Registered Company Number: 11008147 Registered in England. FCA 799302

Hudson Rose Services Cirencester Ltd, trading as Hudson Rose. Registered Office: 78 Dyer Street, Cirencester GL7 2PF Registered Company Number: 13349772 Registered in England

There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances. This will typically be £499. There is no charge for any initial consultation.

Your Home may be Repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Not all forms of Property Development Finance are regulated by the Financial Conduct Authority

Copyright 2023 - Hudson Rose Services Limited