Valuation of a new build

sgh1976

More of a curiosty than anything else but when the banks send out for a property to be valued, as per the mortgage agreement, how do they get a value on a place that isn't even built yet?

Mrs_Bumble

They don't like to lend off plan usually. Lots of problems as the builder may not complete the build, completion could be delayed, the mortgage offer will only be valid for 3 or 6 months and won't be extended. By this point the purchaser will have exchanged and is committed to complete and the property could be worth less than the original valuation and therefore can be lots of problems.

In answer to the question though the valuer would attend the build, base the valuation on comparison properties in the build and local market knowledge and will estimate a conservative valuation.