What lenders are really looking for in a valuation report?

At Credco, we review a lot of reports before they land on a lender’s desk. The same questions come up repeatedly, from both borrowers and introducers. Below is a simple guide to how lenders read a valuation, the red flags they notice, and the steps that make approval more likely.

“Sense check the Gross Development Value (GDV) and market values before the valuer sets foot on site. It avoids disruption.” (Hiran Patel, Credco)

What lenders check first

When a report lands, here’s the order most lenders read it:

1. Headline numbersMarket value and GDV. Then the 90-day value. A large gap between the market value and the 90-day figure will always get attention.
2. Comparable evidenceAre the comparisons recent, local, and genuinely comparable? Weak evidence gets picked apart immediately.
3. Assumptions and caveatsNotes such as “subject to planning” or “assuming build costs of X” are read closely, not skimmed.
4. Title and tenureShort leases, restrictions, or overage are instant pause points.
5. PlanningConsents and conditions are checked against timelines and budgets.
6. Development detailBuild costs and programmes must feel realistic in today’s market.
7. Income stress testOn investment assets, lenders run rents and yields through their own stresses to see if they still stack up.

Common red flags that stall deals

[Inset image placeholder: Marked-up valuation showing comparables and adjustments]

Typical timelines to plan for

For higher value or more complex schemes, allow 7 to 14 working days from inspection to report. Unusual assets, title quirks, or planning conditions can extend this. If your timetable is tight, a desktop or limited-scope report can provide an early steer before committing to the full valuation.

“Be realistic on GDVs. Agent best case figures will not fly with a lender.” (Hiran Patel, Credco)

A stronger real-world example

One recent case involved a borrower expecting a GDV of £3.2m. The initial report landed at £3m – £200k short. That meant the lender would only release 60% LTV instead of the 65% originally modelled, leaving a six-figure equity gap. We stepped in early:

The figure was revised upwards. The borrower avoided restructuring, and the loan was completed on time.

The lesson is simple: sense-check GDVs and market values before the valuer sets foot on site. That preparation avoids disruption and keeps the deal on track.

How to prepare so your valuation works for you

Before instruction

When instructing

After inspection

For introducers: packaging that earns trust

Introducers can make or break how a lender perceives a valuation. Here’s a quick checklist:

Miss these, and you risk slowing everything down.

Where Credco helps

Our role is to make the valuation support the deal, not fight it. We help you sense-check numbers, brief valuers, and structure requests so lenders see a clean, credible story. If you would like a second set of eyes on a draft report or evidence pack, we can review quickly and discreetly.

Hiran Patel Senior Advisor, Credco Hiran leads our structuring reviews and valuation prep. He brings lender-side experience that helps turn complex assets into clear, fundable proposals.

If a loan is secured against your property and repayments are not kept up, your property could be at risk.