PROPERTY VALUATION GUIDE
Who Values My Home When Taking Out Equity Release?
The lender normally arranges the formal valuation of your home. It is not usually your local estate agent, and you do not normally need several estate agents to provide valuations.
The lender will typically instruct a professional property valuer or surveying firm to assess your home for mortgage-lending purposes. That valuation can affect whether the property is acceptable and how much you may be able to release.
This is normally the valuation that matters for the application.
An estate agent appraisal and mortgage valuation are not the same thing.
Condition, construction, location and saleability can all affect the result.
A lower value can simply mean the maximum available needs recalculating.
Who Actually Values Your Home for Equity Release?
When you make a formal lifetime mortgage application, the lender normally arranges the property valuation.
The lender will usually instruct a professional valuer or surveying firm to assess the property for mortgage-lending purposes. You would not normally choose whichever local estate agent or surveyor you believe might give the highest figure.
At My Later Life, we may initially use the property value you provide when discussing possible options. That can help us estimate what may potentially be available, but it is only a starting point.
Your estimated value helps with early calculations. The lender's accepted valuation is normally the figure used for the formal lending decision.
Is It a Local Estate Agent Who Values My Home?
Normally, no.
A local estate agent can still be useful because they may know what similar properties are selling for in your area. But an estate agent's appraisal is usually designed to estimate a possible marketing or selling price.
The lifetime mortgage provider generally relies on the valuation it has arranged for its own mortgage purposes.
Estate agent estimate
£450,000
An estimate of what the property might be marketed or sold for.
Lender valuation
£425,000
The figure the lender may use when calculating the mortgage.
Do Several Estate Agents Value My Property?
Usually not. You do not normally need to ask three or four estate agents to value your property and then take an average.
You can obtain more than one estate-agent opinion if you want a better feel for the local selling market, but those appraisals do not replace the lender's own valuation.
If you are unsure what value to use when first speaking to us, a sensible local estimate can help. Just remember that the formal amount available will depend on the lender's accepted valuation.
Is My Home Valued at Market Value?
The aim is generally to establish an appropriate market value for mortgage-lending purposes.
That wording matters because a lender valuation and an estate agent's suggested asking price are not necessarily the same thing.
RICS distinguishes between a marketing appraisal and a professional valuation. A mortgage valuer is considering the property as security for lending, using evidence such as comparable transactions and the characteristics of the property.
Read RICS guidance on residential valuations.
Recent selling prices of similar properties.
Maintenance, defects and general state of repair.
Property type, age and building method.
Local demand and surrounding environment.
Important where the property is leasehold.
How readily the property might sell in the future.
Estate Agent Valuation vs Equity Release Valuation
| Type | Who provides it? | Main purpose | Used by lender? |
|---|---|---|---|
| Online estimate | Automated property website | Rough indication | Not normally as the formal valuation |
| Local estate agent | Estate agent | Potential marketing/sale price | Not normally |
| Equity release valuation | Valuer instructed for the lender | Mortgage-lending assessment | Yes |
MYTH VS FACT
“I've Heard the Valuer Down-Values the Estimate of the House. Is That True?”
The concern
“My estate agent says £450,000, but the lender's valuer says £420,000. Have they deliberately down-valued it?”
The reality
Not necessarily. The valuer's role is to reach an independent professional opinion for lending purposes, not to deliberately reduce the value.
A lower valuation can feel disappointing, especially if you have already received a higher estate-agent estimate. But the two figures may differ because they are produced for different purposes.
- Comparable properties may have sold for less than expected
- The home's condition may affect value
- The property may have unusual construction
- The lease may be shorter than expected
- Structural concerns may have been identified
- The location may affect future saleability
- The original estate-agent estimate may simply have been optimistic
A lower valuation is not the same thing as a valuer deliberately reducing your home's worth.
How an Equity Release Valuation Fits Into the Process
You give My Later Life an approximate property value.
A suitable lifetime mortgage application is submitted.
The lender arranges the valuation it requires.
The lender receives the valuer's assessment.
If necessary, the amount available is recalculated.
What Does the Equity Release Valuer Look At?
The exact process depends on the lender and type of valuation, but where a physical inspection takes place the surveyor may look at the inside and outside of the property and its surroundings.
Outside
- Roof and walls
- Windows
- Extensions
- Garden and access
- Garage or outbuildings
Inside
- General condition
- Room layout
- Kitchen and bathroom
- Signs of damp
- Visible structural concerns
Local area
- Comparable sales
- Road and location
- Nearby commercial premises
- Local demand
- Future saleability
Will the Valuer Come Inside My Home?
Sometimes, but not every application necessarily follows the same valuation method. Depending on the lender, property and circumstances, the valuation may involve a physical inspection or another method the lender considers acceptable.
Is it a full structural survey?
Not necessarily. A mortgage valuation is primarily for the lender and should not automatically be treated as a comprehensive structural survey carried out for the homeowner.
Will photographs be taken?
During a physical valuation, photographs and measurements may form part of the valuer's record.
Will the valuer tell me the value on the day?
Do not assume they will. The valuer may still need to review comparable sales and other information before completing the formal report.
Should I Prepare My Home for the Valuation?
You do not need to make your home look like a show home. The valuer is not judging your choice of furniture or decoration.
Make relevant rooms, garden areas and outbuildings accessible.
Useful evidence about extensions, repairs or lease changes may help.
Tell the valuer about significant works, while remembering they still form their own opinion.
Known property issues should be dealt with openly.
What Happens If My Home Is Valued Lower Than Expected?
A lower valuation can reduce the maximum amount available through a lifetime mortgage.
| Original estimate | Lender valuation | |
|---|---|---|
| Property value | £450,000 | £400,000 |
| Illustrative maximum at 30% | £135,000 | £120,000 |
| Amount required | £110,000 | £110,000 |
In this example, the lower valuation still provides enough borrowing. If the homeowner needed £130,000, the lower valuation could create a £10,000 shortfall.
The percentage above is purely illustrative and does not represent a particular lender or current product.
Can I Challenge an Equity Release Valuation?
Sometimes it may be possible to ask whether the lender will consider a valuation review.
A challenge normally needs evidence. Simply saying “I think my home is worth more” may not be enough. Useful evidence could potentially include recent sales of genuinely comparable nearby properties.
Even if a review is considered, the lender or valuer is not required to change the original figure.
Can Another Equity Release Lender Value My Home Differently?
Potentially. Different lenders can use different valuation firms, surveyors and property criteria.
But that does not mean homeowners should repeatedly apply elsewhere simply hoping to obtain the highest possible valuation. Another valuation might be similar, lower or higher.
At My Later Life, the first step would be to understand why the original valuation caused difficulty and then consider whether another suitable lender or another solution is appropriate.
What If the Property Is Given a Zero Valuation?
A zero valuation is different from simply receiving a figure lower than expected. It can indicate that the property is not considered suitable security for that particular lender in its current circumstances.
- Serious structural concerns
- Unacceptable construction
- Major disrepair
- Legal problems
- Location concerns
- Saleability issues
If this happens, the reason should be investigated carefully before another application is made.
This links naturally to our separate My Later Life guide: “Why Has My Equity Release Application Been Declined?”
MY LATER LIFE
How My Later Life Can Help With Your Property Valuation
At My Later Life, we can help you understand:
- How the lender's valuation affects the amount available
- Whether the lower value creates a borrowing shortfall
- Whether a property issue has been identified
- Whether another suitable lender may have different property criteria
- Whether another later-life option should be considered
We can search across suitable equity release lenders and plans available through our service.
The aim is not simply to find a lender that gives the highest property valuation. The aim is to find a suitable later-life solution for your circumstances.
Equity Release Valuation FAQs
Who values my house when I take out equity release?
The lifetime mortgage lender normally arranges the formal valuation and instructs a professional valuer or surveying firm for its lending purposes.
Is it a local estate agent?
Normally, no. A local estate agent can provide a useful estimate, but the lender generally relies on its own valuation process.
Do I need three estate-agent valuations?
Usually not. Multiple estate-agent opinions may help you judge the local market, but they do not replace the lender's formal valuation.
Does an equity release valuer deliberately down-value properties?
No. The valuer's role is to reach an independent professional assessment for lending purposes. A figure may be lower than expected, but that does not mean it was deliberately reduced.
Does a lower valuation mean I have been declined?
No. A lower property valuation and a declined property are not necessarily the same thing.
Can I challenge the valuation?
You may be able to ask whether a review can be considered, depending on the lender and evidence available. There is no guarantee the figure will change.
Need help with your valuation?
Not Sure What Your Home's Valuation Means for Equity Release?
My Later Life can explain how the lender's valuation affects the amount available and help you explore suitable lifetime mortgage and later-life options.
Call 0207 100 4255Use Our CalculatorWho Values My Home for Equity Release? The Final Answer
When you apply for equity release, the lender normally arranges the formal valuation of your home.
You do not usually need several local estate agents to value the property, and your equity release adviser does not decide the final figure.
If the valuation is lower than expected, that does not automatically mean your home has been deliberately “down-valued”, and it does not automatically mean the application has been declined.
At My Later Life, we can help you understand the valuation, what it means for your application and what suitable later-life lending options may be available.
Important information: Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.
A lifetime mortgage is a loan secured against your home. Interest can be added to the amount borrowed and may compound over time.
N.B. “This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.”
My Later Life " Blog written by Simon Oliver .
