EXPERTS
Agony agent Readers put their property questions to our guest panel of experts: solicitors, mortgage advisers, property gurus and shared ownership providers
THIS MONTH’S PANEL OF EXPERTS
Rupi Hunjan, Managing Director, Censeo Financial
Joel Taylor, Business Development Manager, Owen Paulo
Why you need a valuation Q I am a first time buyer and I wondered why does a lender need a valuation for the property I am interested in and what does it cover? Petra Beatty, Surbiton A When you buy a property and apply for a mortgage, your lender will carry out a mortgage valuation as part of your mortgage application.The lender will want to know if the property’s value, relative to the sale price, is sufficient to secure your loan. This is a deciding factor in whether your mortgage application is approved.The valuation is payable by you, and can range up to £1,500, although some mortgage products include a free valuation as part of the product – if you use a mortgage broker like Censeo, it will search all lenders for the best product for you.The fee will be discussed with you when applying for your mortgage. Although you may pay for the report, you may not get a copy or even see what the surveyor has written. It’s important to remember that the lender’s valuation is not a detailed survey.The lender’s valuation is based on the surveyor’s knowledge of comparable prices in the locality. It involves a brief inspection, takes typically no more than 30 minutes to carry out, and should not be confused with a detailed survey looking at the condition of the property. The findings of the mortgage valuation are for the benefit of the lender, rather than you. It advises the lender of the value and of any characteristics of the property that might affect its value. Its scope is to establish if the property will act as viable security for the loan you’ve asked for. If your mortgage application is refused based on the lender’s valuation, your lender will usually tell you why.You’ll also find out if the surveyor believes your property is overpriced. Traditionally, a lender’s valuer would have visited your property to compile a short report. However, these days they are increasingly opting to value properties using recent sales data online and, if required, will drive past the property. You may be considering buying off-plan with your home still under construction. In these situations, the lender’s valuer will usually visit the sales office and inspect the plans, using their local knowledge and recent sales data online to provide a valuation and in some circumstances, revisiting the property once the property has been completed. Do go to censeo-financial.com for more information.
Hellyn Fairbrother, Regional Sales Manager, London & the South East, Guinness Homes
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We need your questions... If you have any queries, or difficulties in understanding the property buying process, our panel of experts is waiting to help. Send our team your questions on buying property, shared ownership, legal issues, or your financial problems and we’ll find the best person from the panel to give the advice you need.
Email your questions to: lynda@ rsttimebuyermag.co.uk
Rupi Hunjan
94 First Time Buyer February/March 2025
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