Ever wondered how the banks value your house before the repossess?

Mortgage arrears always bring stressful and uncertain times. Lenders undertake valuations as part of the repossession process, not only to understand the current value of the property but also to gauge the potential recovery amount if the property must be sold. This valuation is important for any steps the lender might take, from renegotiating terms to proceeding with repossession. Understanding this process can provide homeowners with clearer insights into their situation and potentially highlight avenues for action.

Once a homeowner falls into arrears and communication and breaks down or repayment plans fail, lenders usually decide to assess the property’s value as a step to repossession or as part of efforts to restructure the mortgage. These methods can be one of several methods:

Desktop Valuation: Conducted remotely, using online data and comparative market analysis. 

Drive-by Valuation: More in-depth, this method involves an external examination of the property and its neighbourhood. 

Full Valuation: This involves a detailed inspection of the property’s interior and exterior and is the most accurate value assessment. 

Professional valuers or surveyors, often independent from the lender, carry out the valuation. They consider various factors, including property size, condition, location and comparative