Arguably, lifetime mortgages place the valuation process under greater scrutiny than most areas of the residential market and shifts in demand over the last three to five years have only sharpened that focus.
The market disruption that followed the 2022 mini-Budget highlighted this clearly. Rapid rate rises reduced affordability and tightened loan-to-value limits, slowing activity across the sector.
While volumes fell for a period, the underlying need to access housing wealth did not change. Pension income remained under pressure; household costs rose and property continued to hold a growing share of personal wealth. As rates eased, demand returned, bringing valuations back to the centre of lending decisions.
Recent UK Finance data shows 39,950 new loans advanced to older borrowers in Q3, up 18.4% year on year. The value of this lending was £6.5bn, which was up 24.7% compared with the same quarter a year previously. Within this, there were 6,040 new lifetime mortgages advanced in Q3 2025, a year-on-year increase of 3.4%, with lending values up nearly 4% at £530m. Later life lending now represents close to 8% of all residential loans and as volumes grow, the consistency and accuracy of valuations becomes even more important.
The valuation process itself is familiar one. Surveyors rely on the comparable method, using recent sales, local market knowledge and clear evidence to reach a fair market value. Access to historic sold data, floor plans and images allows surveyors to test assumptions and apply adjustments where properties differ in size, condition or layout. What changes in later life lending is the weight given to certain risks.
Unlike mainstream lending, where risk reduces over time, lifetime mortgages place the property at the heart of the lender’s exposure for the full term of the loan. Condition, maintenance and saleability therefore take on greater significance. Issues such as roof condition, damp, poor upkeep, cladding concerns or restrictive lease terms are assessed not just for their current impact, but for how they may affect a sale many years in the future. Even modest defects can become more serious if they point to long-term neglect.
Expectation management also plays a key role in valuation outcomes. Many later life borrowers have owned their homes for decades, may have limited insight into current market values and consequently may have unrealistic expectations about the value of their much-loved family home. Online estimates often overstate value or fail to reflect local conditions. When the reported value differs from expectation, it can feel like a reduction rather than a fair assessment. Early guidance from advisers, grounded in sold price evidence, can help align expectations and reduce challenges later in the process.
Our valuers also need to be empathetic and suitably sensitive in their approach when visiting the homes of later life borrowers, especially as they will be one of potentially only a few people to visit the property during the lending process. Therefore, our valuers also need to be mindful of any potential customer vulnerabilities and ensure that any related concerns are also reported to our clients in this respect under the relevant terms of our contractual obligations, coupled with the lender’s guidance notes.
Regional differences further shape valuation considerations. In London, the South East and the South West, higher property values often support larger advances but also bring greater scrutiny due to market volatility and higher exposure. In many northern regions, lower average
values mean tighter margins, making accuracy even more important. Areas with older populations tend to see higher volumes, reinforcing the need for consistent standards across regions.
Capacity and expertise also affect valuation quality. High-demand areas can stretch surveyor availability, and later life lending requires an understanding of specific lender criteria and long-term risk. Training new surveyors takes time, and experienced professionals still need support to apply guidance consistently across complex cases. Ongoing investment in skills and oversight remains essential as volumes rise.
Looking ahead, lifetime mortgage demand is expected to continue its gradual increase. As more people reach retirement with wealth tied up in property, valuations will play an even greater role in protecting both customer outcomes and lender security.
For lenders, the priority is clear. Strong valuation practice, consistent standards and early alignment of expectations are critical. When valuations are robust, they provide the confidence needed to support sustainable growth in the later life market and ensure the homes securing these loans remain sound for the long term.
Andrew Peters is associate director of technical services at Countrywide Surveying Services
