One of the first things to stop as Lockdown came into force was the physical valuations of residential properties by Surveyors. This meant that Lenders were reliant on Desk Top surveys or AVM’s (Automated Valuation Model) to enable them to issue Offer Letters. As properties were not being physically valued, then a level of caution came into play and Loan to Values reduced to 60-65% in the Buy to Let Lending Market, during April and May.
The great news is that, subject to strict hygiene procedures and properties being empty or Tenants leaving the property for a short time, Surveyors have been able to get back to work during June. This has included Single Units, HMO’s and Multi-Unit Blocks. Initially, they are clearing the backlog of instructions pre COVID 19, but we are now seeing new instructions being undertaken and Loan to Values are returning to the usual levels of 75%.
Surveyors have faced challenges during this crisis and are having to adapt to new practices. Read below the thoughts of Chris Mitchell Chartered Surveyor and registered valuer at Eddisons Taylors. This was a Q & A article in the Commercial Broker Magazine of the National Association of Commercial Finance Brokers in June 2020: –