Cherry Orchard Funding - Valuations
Why does a lender need a property valuation report?
To check the value is as expected and the property will serve as suitable security for the loan.
What are the different types of reports?
Automated Valuation Model (AVM) – No human interaction and uses algorithms to provide a valuation. Suitable for low-risk, ‘standard’ properties with historical data.
Desktop Valuation – Surveyor uses data available online, and comparables, and assesses the property without a visit.
Full report – Surveyor attends the property, takes pictures and measurements, and writes a full report to the RICS Red Book standard.
Why does Cherry Orchard use full Red Book reports?
- Usefulness and completeness of information. The report will include; comparable properties, recent sales data, rental analysis, location information, external and internal pictures, and gross development value (GDV).
- We can lend the maximum possible against the true value of the property.
- The report also proves useful to the borrower to check their plans for the property are feasible and highlight any issues.
What is Cherry Orchard’s process?
- We use local, independent RICS valuers - we can work to tight timeframes and can have an inspection attended within 2 days and the report returned within a further 3 working days.
- We will use our panel, or any other valuers that meet our criteria, (we are happy to take recommendations) and provide you with quotations which include the timescale for the completed report.
- For urgent cases, we speak with the valuers on the phone to get quick confirmation of price and timescales.
- We will instruct the valuer, who will contact the borrower for payment – Cherry Orchard do not add any additional fees for the valuation. The borrower pays the same fee we are quoted.
- Once the report is received it will be reviewed by Cherry Orchard within 24 hours.
How do Cherry Orchard use valuations?
- We look at the Market Value figure, not the 180 or 90-day figure (which can be lower).
- We review the strengths, weaknesses, opportunities and threats to the property – and check against our initial underwriting.
- We will share the report with you and discuss any concerns and the resolutions.
- We do not use the report to change your rate, LTV or term.
- We can use a report you already have, if it meets our criteria, and is re-addressed.
How we can help
Unregulated bridge loans
Purely residential security property
Up to 75% LTV
Loans up to £1,000,000 gross
All interest fixed and retained
For More Information
Call Paula Storey
Director of Sales on 07968 940517
Email your requirements to
paula@orchardfunding.co.uk