“Nowadays people know the price of everything and the value of nothing,” said Oscar Wilde and it’s still true today that the price expected or paid for something doesn’t always reflect its value. Property is a solid example of this, and it’s why the valuation sits at the heart of every property or bridging loan.
The valuation shapes how much a lender can advance, how quickly a deal can move, and whether the offer stays on track to completion.
With more lenders entering the market and brokers facing rising pressure to deliver fast solutions, a smooth valuation can make the difference between success and a lost deal.
Why strong valuation partnerships matter
The speed and certainty that brokers look for is forged by close working links between lenders and their valuation panel firms. A well-managed panel ensures surveyors understand the pace of short-term finance and the level of detail the lender needs, while the lender understands how each firm works and the instructions and support they require. The strength of this kind of partnership keeps service levels steady, can often reduce delays and gets problems addressed early, before they affect a case.
Choosing the valuation
Not every case needs the same level of inspection. The choice depends on the property, the level of risk, the loan size and the planned exit.
A full valuation is used for most bridging, commercial and development cases. It gives the lender a full view of the property and is especially important when refurbishment or conversions are planned, which may lift the value later. It could be either a Red Book valuation or a Short Form.
A desktop assessment works for simple, low-risk properties where strong comparable data is available, so unlikely to be used for cases where any development is planned. But with a 48 hour turnaround, it helps reduce cost and can move cases forward at speed.
An automated valuation (AVM) is done in minutes and can be suitable for standard residential properties at low leverage, though it is also rarely used where works are involved.
The key point here for brokers is that the valuation type must match both the property and the deal, so advising clients early avoids confusion and reduces the risk of last-minute change or delay.
How brokers help keep deals on track
Brokers need to do a certain amount of handholding through the valuation process. Preparing the client for what will happen and why it matters helps avoid all manner of frustration. This way clients can ensure access is arranged in advance and all the relevant documents, including planning paperwork, lease details and works quotes, for example, are ready to go. Full disclosure is also key and any known issues, however small, should always be raised at the outset.
Brokers are also a key player in terms of lender management. A valuation must reflect current market conditions, and it is helpful to explain this to clients early, especially if the client has a view of value that may not align with comparable market sales.
If a concern is raised in the report, brokers and lenders can work together to protect the deal, whether that involves supplying further detail, adjusting the structure, or clarifying the exit.
Strong communication between surveyor, lender and broker aligns processes and means cases progress at the pace clients want and expect. When everyone understands the plan, the process feels smoother and the risk of late-stage surprises falls, which is what everyone wants.
A strong valuation builds the base of every bridging case
The valuation shapes the loan, the timeline and the client’s wider plan. We work with a national panel of surveyors who understand the pace and detail required in bridging. Valuations are instructed quickly, with close contact maintained between the bank, the valuer and the broker so issues are picked up quickly. I find full valuations cover most bridging cases, while desktops and AVMs offer a faster route if appropriate for the property.
For refurbishment cases, we review the cost plan, the works timeline and the expected finish in tandem with the valuer. This supports a fair and informed view of the post-works value and we always lean on the expertise of our underwriters and our business development team.
Oscar Wilde was right; start with the value, not the (hoped-for) price. It’s the best way to take the drama – although he’d have enjoyed too – out of the deal.
Roz Cawood is MD for property finance at StreamBank
