The valuation of your home is a critical stage of your equity release journey, and understanding the process can help you feel fully informed and confident about this next step.
In this comprehensive article, we’re giving you a full rundown of what to expect during the valuation process and how you can best prepare in advance to avoid unexpected delays.
What is a property valuation? Is it different when releasing equity?
A property valuation is the process where a designated surveyor will research and visit your home to estimate its market value. You will have had one before, likely from an estate agent, if you have ever sold your home.
When you decide to release equity, the valuation process is similar. The surveyor will consider the area you live in and the property itself to decide how much it is worth, make a visit to your home, and then conclude the estimated value.
The estimated value from the surveyor may differ from an estate agent's valuation, as they are assessing your property not for immediate resale, but for long-term value. While an estate agent may focus on cosmetic details and the likely interest of buyers, a Qualified Surveyor will consider your home’s features and how they might affect resale in the distant future.
So why do you need a valuation?
The valuation is a realistic assessment of your whole property and is a pivotal part of the equity release process. To take out a loan against your property, your lender will determine how much you can borrow based on a valuation from the surveyor.
What is involved in the valuation process?
The specific valuation process will depend upon your property and the requirements of your chosen lender. However, every valuation process will likely follow these similar steps:
1. Schedule the visit
After your adviser has submitted your application, your lender will arrange for a qualified surveyor to contact you and schedule an appropriate visit your property.
2. Prepare for the valuation
Before they arrive, ensure that any pets are secure, the entire property is accessible, and be aware the surveyor may want to discuss any renovations or major additions you have made to the property.
3. During the valuation
The surveyor may ask you questions about the property and how long you have lived there during their visit. They may also take photos of key areas to help with deciding the final figure.
4. After the valuation
The surveyor will then complete a report and send it to your lender. Your application will then move onto the next stage, where the lender will then use the valuation and the surveyor’s report to underwrite your application.
Important factors to consider...
#1 Duration of the valuation:
The surveyor may not spend a long time physically at your property, but they will have spent time beforehand researching:
- Recent sale prices for properties in your local area.
- Your lender’s criteria.
- The exterior condition of the property.
The visit to the property acts as a ‘final check’ so that they can ensure their report is accurate.
#2 Each case is unique
Every customer and property will have different circumstances and needs. The valuation process may differ depending on your lender and the information they require to be able to offer you the loan.
Your equity release adviser will be with you through every step, offering you support so that you have a full understanding of what is happening with your application at each stage.
#3 Equity release is a specialised product
Before you even get to the valuation stage, you will need to have decided with an adviser that equity release is the right option for you. There are many factors to consider before releasing equity, so having specialised, personalised advice is essential.
Summary Summary
The valuation process is a key step in your application journey that will have an impact on how much you can release, and now that you know what to expect, you can feel confident in preparing for this stage of your equity release process. If you have any further questions about the valuation process, your adviser will be able to provide expert knowledge and guidance to see you through to completion.
“Royal London Equity Release” is a trading name of Responsible Lending Limited. Responsible Lending Limited uses Royal London branding under licence from Royal London Marketing Limited. “Royal London”, the “Royal London logo” and “Royal London Equity Release” are registered trademarks of The Royal London Mutual Insurance Society Limited. Responsible Lending Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 763158. Registered in England and Wales under company number 09801855. Registered office: Princess Court, 23 Princess Street, Plymouth PL1 2EX. Responsible Lending Limited is a wholly owned subsidiary of the Royal London Group. Being a wholly owned subsidiary of the Royal London Group does not alter Responsible Lending Limited’s regulatory responsibilities.
