Table of contents
What is a loan security valuation?
A loan security valuation is conducted to determine the value of a property or asset being used as collateral for lending, such as for a commercial mortgage.
Property, business and asset valuations
As an RICS-regulated firm, we provide Red Book valuations across all sectors and specialisms. Whether you may need to value your property, business, or asset, contact our commercial valuations team today.
What is the purpose of a loan security valuation?
The primary purpose is to establish whether the loan amount can be secured against the property value and, should you default, whether the lender can realistically recoup the amount.
An accurate and comprehensive loan security valuation on your commercial property will enable banks and other financial institutions to make informed decisions on whether any loan they make to you will be secure.
Getting it right, therefore, is of vital importance both to you and to the future profitability of your commercial business.
What is considered in a loan security valuation?
Reputable banks and other lenders will only consider a valuation report prepared in accordance with the Royal Institution of Chartered Surveyors (RICS) Red Book. These reports consider various factors, including:
- Location – The building’s geographical location and its desirability
- Condition and quality – Its physical state and construction quality
- Supply and demand – The availability of similar assets and demand for them
- Market conditions – Current economic factors affecting valuations
- Income generation – The income it can generate, such as a property’s rental value
- Tenant reliability – How dependent and financially stable the existing tenants are
- Alternative use potential – The possibilities for repurposing the space to enhance value
- Planning permissions – Existing or potential permissions that could impact future income
- Energy efficiency – The energy performance and sustainability
- Sustainability over loan period – The building or item’s ability to maintain its value throughout the loan term
"At Eddisons, we conduct thorough valuations in strict accordance with RICS requirements, ensuring accuracy and reliability in our assessments."
How do I get a loan security valuation for commercial property?
Getting a loan security valuation is straightforward when you choose Eddisons. We will explain the process and arrange a free consultation when you call 0800 051 2593. During your consultation, we will explain how much the services will cost and the expected timelines to carry out the work.
Who should complete a loan security valuation?
If you are considering raising money and need a loan security valuation, you should approach an experienced and professional RICS-qualified chartered surveyor. This will give you peace of mind that the figure they arrive at is accurate and validated by RICS and should something go wrong further down the line, they have professional indemnity which will offer legal protection.
Experts in commercial property
Contact our team of leading auctioneers, property agents, and RICS-qualified surveyors today.
Why should I use Eddisons for a loan security valuation?
Accuracy and compliance with RICS standards are of utmost importance when it comes to loan security valuations. We can deliver these thanks to our extensive knowledge of various sectors and over 180 years of experience.
Our services are highly rated by past customers too, with 100% of reviewers recommending our experts on Reviews.IO.
Get a loan security valuation now
Contact our experienced advisory team today for more information on how we can provide an accurate loan security valuation. You can either call 0800 051 2593 or complete the form below to start the process.
In the meantime, why not read our news and insights page to learn more about our work and the property industry?
Get in touch with us for your valuation
Please fill out the fields
