Mortgages.scot

Can a Lender refuse to share a valuation? Picking through more questions that have been asked over the last few weeks, this one came in by email from a visitor in relation to valuation sharing by lenders. Another interesting question and one that does confuse buyers in general so worthy of some comments so that everyone understands what the position is here. The question asked is:

My lender says they had the valuation done and it’s ok but won’t share it with us, my husband, well we both are confused as we paid them for it so why can’t we even see what was said!!!

The issue here is that the lender is instructing a valuation for their use, even though you are paying for it, it is part of the mortgage process. They are instructing a basic valuation of the property to determine nothing more than it is good security, what its value is and whether there is anything they need to be aware of.

The contract is between the lender and the valuer, this is why you don’t get to see it, despite paying for it. Having said that, the valuer still has a duty of care to ensure they report any concerns they have seen, which may mean further specialist reports. The lender must inform you of these.

The reality is the valuer when acting for the lender is simply making sure they are lending against good security, they are not doing a detailed inspection that many uncover details that you as the purchaser are interested in.

If the lender is comfortable lending based on that report then there is actually no need for you to see the report as it likely won’t tell you that much.

Ultimately it is up to you to determine whether to instruct your own valuation. But when would you? I will use a couple of examples.

If there are any concerns in the report the lender will raise them with you.

New build property valuation

In the case of a new build property, the main points of interest are the value and the warranty that is usually for 10 years to protect you against defects in the build or general issues with the finishings. There is little value in obtaining a new report for your own purposes unless you have specific concerns.

Older property valuations

With older properties it gives comfort that a basic valuation finds nothing of particular interest worth reporting on, however, given the age of a property and based on your own viewing, you may be concerned that there is work required beyond basic decoration that warrants a reduction in the price of the property, even if the lender’s report says it is worth what you expected.

In this case, you may find it useful to instruct your own valuer to visit the property and direct them to look in areas that you are concerned with and report back on them. If they find nothing then at least you have additional comfort before purchase. If anything is discovered then you have the report comments to go back and discuss with the seller.

That does not mean you will get a reduction in price, but it will at least put you in a better position to know what you are buying and what may be required in additional cost.

It is more outlay, of course, however, it is always going to be better that you know as much as you can before tying yourself to a long term commitment.

You can find out more about valuations on the RICS website.