As lenders begin to emerge from an exceptionally busy period of dealing with enquiries under the Coronavirus Business Interruption Loan Scheme and supporting customers with repayment holidays, and cashflow management issues, we are seeing a significant number of borrowers refinancing to reinvest elsewhere. Take advantage of the historically low bank of England base rates, and some acquisitional and development activity.
Where property is offered as security it must be valued and, in the past, inspected. Obviously, the latter, under current restrictions, is problematic. This has been identified as a substantial factor which is hindering the delivery of new loans, which also has ramifications for liquidity in the wider economy.
In the meantime, we are offering desk-top valuations, with some rare exceptions where we can both inspect and comply with Government restrictions. Typically, these exceptions might be bare land development sites or, very occasionally, vacant properties. We will draw from a range of sources of information in order to comply with our client’s requirements as well as the RICS Global Standards 2020 (Red Book). Our valuations are currently subject to the RICS issued uncertainty clause, reflecting the highly unusual market conditions.
We therefore recommend that borrowers and lenders alike prepare in advance to support a valuation by having as much information to hand which is independently sourced or verifiable before approaching valuers. This information may include previous valuation reports, survey reports, marketing particulars, planning applications or information that shows the arrangement, condition and specification of the property.
Our valuation professionals know valuers play a key role and are doing all we can to help ensure the current market frictions are mitigated as much as possible.
For further information on our valuation service, please click here.
If you would like to speak to a property specialist, please contact us.