Video Transcript

Well, there are a couple of factors here. The original valuation report will be addressed to a specific lender who may or may not be proceeding with a loan application. That lender’s consent needs to be sought to free up the valuer to provide advice to another lender. If the original lender refuses, then the valuer has a conflict of interest and can’t act for a new lender. If the original lender consents, then that valuer is free to act. But the new lender may require different basis of values or different assumptions and special assumptions. They might have different requirements in their instruction letter too, which will involve amending or updating the report. More calculations might be required, which is obviously more work.

The original report might not comply with the new lender’s requirements.

So, the original report might not comply with the new lender’s requirements. It’s also worth noting that a valuer’s insurance company might prevent them from working with a specific lender or specific types of lenders. Some insurers don’t permit valuers to work with peer-to-peer lenders, for example, or prevent them from undertaking valuations for bridging lenders. The last thing to consider is that if the original valuation was done for a first charge loan and the new report is needed for a second charge loan, then the valuer will have to provide insurance cover to the new lender too, which obviously involves a cost to them and is potentially an additional risk to the valuer.