Everything you need to know about valuations

Whether you're buying, selling, refinancing, or simply curious about the value of your property, understanding valuations is essential.

What is a property valuation?

A property valuation is the process of determining the estimated market value of your property.

It is an objective assessment of a property's worth, taking into consideration various factors such as location, condition, size, and comparable sales in the area.

A Chartered Building Surveyor will be able to carry out a property valuation on your behalf, making notes and taking photographs to create their valuation report.

When is a valuation needed?

Other than when buying or selling, there are a number of reasons why someone might need a property valuation;

Help to Buy – You will need a property valuation if you are looking to sell a Help to Buy property. This is because owners are required to repay 20% of their Help to Buy Equity Loan so, when the property is valued before the sale is made, they will need to repay 20% of the property’s current value based on the valuation report.

For those looking to pay off their Equity Loan, even if you’re not selling, you will still need a valuation to calculate the value of the equity loan to understand how much you need to pay back.

Shared Ownership – Known as ‘Staircasing’ some property owners only own part of their property and pay rent for the other parts. Gradually, they will acquire more areas of the property over time, reducing their bills and increasing their equity.

However, you will need a valuation the more of the property you attain to understand it’s current value, which ensures you are paying the current market value when you secure the next part of the build.

Matrimonial Valuations – Navigating a divorce is stressful enough as it is but when you both own a property, this is where it can get even more complicated. A valuation of your property can help settle disputes, working out how much and what you are both entitled to when it comes to your property.

The property valuation, conducted and written up by the surveyor, will state the property’s actual worth, ensuring you both come to a fair agreement based on facts during the divorce proceedings.

Probate Valuations -You will also need your property valued if you have inherited it. The valuation report can then allow you to make an informed decision about the future of the property and is particularly helpful if delegating parts of the estate away to multiple inheritors.

Additionally, HMRC will require the executor of an estate to have the property valued as this will affect the inheritance tax.

Factors influencing property valuations

Location: Proximity to schools, parks, public transport, shopping centres, and employment hubs can significantly impact property values.

Property Size and Condition: Larger and well-maintained properties typically command higher prices.

Market Conditions: The state of the real estate market, including supply and demand, interest rates, and economic conditions, can affect property values.

Recent Sales: The prices of recently sold properties in the area serve as benchmarks for property valuations.

Renovations and Upgrades: Home improvements, such as kitchen upgrades or adding a new bathroom, can increase a property's value.

Environmental Factors: Nearby environmental factors, such as pollution or flooding issues, can impact property values too.

Is a property valuation different from a mortgage lenders valuation?

Many people often confuse the different types of valuations available to them. A mortgage lender’s valuation is not the same as a property valuation.

A mortgage lender’s valuation is a lot less detailed than what you will get with a property valuation. It’s usually 2 – 3 pages long and is mainly for the mortgage lender’s use so that they can have a good understanding of your property’s worth.

This type of valuation ensures that it is in the mortgage lenders best interest to give you a mortgage on that property, whereas a property valuation is for the property owners use so they can understand the value of their property.

Why property valuations are important

For buyers, a property valuation helps ensure they are not overpaying for a property. For sellers, it helps set a competitive asking price to attract potential buyers.

Additionally, when homeowners want to refinance their mortgage, the lender often requires a property valuation to determine the current value of the property, which affects the terms of the new loan.

Local governments also use property valuations to calculate property taxes. An accurate valuation can ensure that homeowners don’t pay any more than they need to.

It’s important to note that mortgage lenders rely on property valuations to assess the potential return on investment and make informed decisions about buying or selling residential properties.

Finally, it's good to note that property valuations are not static; they can change over time due to various factors, so it's essential to periodically assess your property's value to ensure you're making the most of your investment.

Who are we?

Sillence Hurn’s Chartered Building Surveyors are RICS qualified with extensive experience of building surveying across London and the South of England.

From advice around feasibility, cost planning, undertaking the work in the current market, specifying works, overseeing and managing the implementation of changes, our chartered building surveyors will be able to identify any upgrades and advise you on the best measures going forward.

Read more about our solutions here:

Technical due diligence
Project management
Dilapidations consulting
Cost management
Monitoring Surveying
Party Wall
Contract Administration
Planned Preventative Maintenance 

Email us at enquiries@sillencehurn.co.uk or call our Southampton team on 02380 014786 / London at 020 3143 2128

All blogs

Related content

  •  SH Advice Hub - Blog
  •  Residential / Advice hub / Building surveys / Business advice and tips
  •  22nd September 2023
  •  Blog
  •  Residential / Building surveys / Business advice and tips
  •  11th September 2023
  •  SH Advice Hub - Blog
  •  Residential / Advice hub / Building surveys / Business advice and tips
  •  25th August 2023
  •  SH Advice Hub - Blog
  •  Residential / Advice hub / Building surveys / Business advice and tips
  •  27th July 2023

Are we a good fit?

If you're looking to work in partnership with a company that will put your needs first, whilst offering a unique and progressive approach to building consultancy services, then engage with us - get in touch, follow us, connect... whatever is best for you!