What lenders are really looking for in a valuation report?

If you are raising development finance, a bridge, or refinancing a completed scheme, the valuation report is the point where a lender’s view hardens into numbers. Get it right and things flow. Get it wrong and you could face extra equity, restructuring, or a stalled deal.

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 numbers – Market 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 evidence – Are the comparisons recent, local, and genuinely comparable? Weak evidence gets picked apart immediately.
3. Assumptions and caveats – Notes such as “subject to planning” or “assuming build costs of X” are read closely, not skimmed.
4. Title and tenure – Short leases, restrictions, or overage are instant pause points.
5. Planning – Consents and conditions are checked against timelines and budgets.
6. Development detail – Build costs and programmes must feel realistic in today’s market.
7. Income stress test – On investment assets, lenders run rents and yields through their own stresses to see if they still stack up.

Common red flags that stall deals

• Over-optimistic GDVs or agent “best case” numbers with no evidence.
• Comparables from the wrong streets or outdated sales.
• Hidden risks in the title or planning that surface late.
• Unrealistic build costs, ignoring current labour and materials.
• Exit plans that rely on tight refinance tests or very fast sales.

[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:

• Gathered fresh local comps from the past three months, including one off-market sale.
• Provided a breakdown of build quality and spec upgrades to justify higher-end values.
• Engaged with the valuer directly, sharing evidence in a clear schedule.

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

• Collect real like-for-like comparable sales with dates, photos, and adjustments.
• Review planning status and outline how conditions will be met.
• Get titles reviewed for restrictions, rights, or overage.
• Pressure test build costs and programme against current supply chains.
• Draft an exit plan with a plan B if timelines shift.

When instructing

• Brief the valuer with your evidence pack.
• Clarify scope: do they need to report a 90-day figure?
• Provide full site and scheme details upfront.

After inspection

• Read assumptions and caveats carefully.
• If a figure looks off, challenge with hard evidence.
• Keep the lender informed to avoid surprises.

For introducers: packaging that earns trust

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

One-page borrower summary (track record, current asset position)
Evidence pack upfront – not buried in appendices
Clear, credible exit plan (with timelines that survive stress tests)
Early disclosure of quirks (planning conditions, title restrictions, lease lengths)
Valuation request letter that frames the right scope (market value, 90-day, residuals)

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.