If you own a home in London and are considering listing it for sale or remortgaging the property, it’s a good idea to know how properties are valued in the different areas of London and which factors have an impact on the decision of the surveyor. If you are in the process of buying a property, this is also worth understanding since your mortgage lender may request a mortgage valuation survey to be carried out on the property to determine that it is worth what the sellers are asking for it and that they are not risking lending you more money than the value.
How Surveyors Carry Out a Property Valuation in East London
If you want to remortgage your home or are in the process of buying a new property, your mortgage lender is likely to conduct a valuation of the property to ensure that the figure that they are lending you is in line with what the property is worth.
Surveyors will carry out this type of valuation survey in one of two different ways. Most commonly with mortgage valuation surveys, the surveyor will not be required to visit the property and will carry out the valuation from their desk. They will do this by researching the recent selling prices of similar properties in the specific area of London where your home is located, along with researching the local area since factors such as the proximity to schools, healthcare, transport links, shopping, and more can impact the value of the home.
On the other hand, some valuation surveys that are carried out by the mortgage lender will require the seller to visit the property in person. This is more likely to be the case for properties in London that are listed buildings or where the property has been constructed using non-standard materials. A lender who is new to lending in that particular area of London may also require the surveyor to visit the property. This will usually involve a quick look around the property to confirm the key features and look for any defects that may impact the value. It will take around fifteen to thirty minutes.
What’s Considered During a Property Valuation in South East London?
Surveyors can be instructed to carry out a valuation survey on the behalf of the seller, buyer, or mortgage lender. In any case, the surveyor will usually check the features, location, condition, and size of the property, along with taking into account similar properties in the local area to get a clearer idea of how much the property in question is worth. Some of the main factors that the surveyor will consider when surveying your London property include:
No matter where the property is located in London, the basic specifications such as the size, number of bedrooms, number of bathrooms, garden and outdoor space, layout, fittings and fixtures, and more, will be some of the biggest contributors to how much the property is valued to be worth. Generally speaking, the more rooms a property has, the higher quality the fittings and fixtures, and the larger the property is, the more it will be worth.
The appearance of the property will also have a large part to play in how much the surveyor deems it to be worth. First impressions matter and surveyors know that no matter what area of London the property is in, how potential buyers feel about the property based on their first impression might impact how much they are willing to pay.
Generally speaking, a property will be valued higher when it is clean, well-maintained, and in good repair with good curb appeal, compared to a property in the same area that isn’t very well-maintained, dirty, and looks run down from the outside. The appearance of the rooms inside will also be considered; rooms that are well-decorated, clean, and modern are likely to add more to the value of the home compared to rooms that have old, peeling wallpaper or faded, marked paint and are in need of cleaning and modernisation. This is due to the fact that buyers are often willing to pay more for a property that they are not going to need to do a lot of work on to improve the appearance.
Some properties in London have distinct characteristics, which adds to their value. In areas of London with lots of properties that have maintained original period features over time, you can usually expect to pay more in comparison with similar homes in other areas. Edwardian homes, for example, that are quite common in some areas of London, often have original window frames or fireplaces that can add to the value of the property if they are in good condition.
The surveyor will also take the potential of your London property into account when providing a valuation. Some buyers are willing to pay more for a property that has a lot of potential to do everything they want with it. Potential for future expansions or renovation can have an impact on the value of the property since it offers an opportunity to buyers to significantly increase the future value of their home. For example, a large loft that could be converted to another bedroom or a lot of outdoor space that will allow for extensions to be built can have a positive impact on the value.
Some additional features in your property that might impact its value will also be taken into consideration by the surveyor. Space for a home office, for example, is a huge factor when valuing homes right now due to the increased prevalence of working from home, so these might be factors that are based on the current trends and things that home buyers are looking for the most. Storage space, such as a large garden shed, garage, or basement, may also impact the value of the property since this is something that a lot of buyers often look for.
How Do Municipal Property Valuations in East London Work?
Surveyors will take the local area into account when determining the value of any property in London. In the capital, there are various factors that go into determining how much a property is worth aside from the basics that are mentioned above, which will impact any property regardless of the location. Since London is a very desirable city to live in, property prices here are naturally higher due to the proximity to the capital. However, the exact location of the property in London will be considered by the surveyor when determining the value. Along with considering the recent selling prices of similar properties in the London area, surveyors will also consider the proximity to desirable areas in the capital, proximity to attractions, workplaces, transport links, and more. In London, you will usually expect to pay more for a property that has the convenience of being located close to an Underground or Overground station, for example. The proximity and quality of schools, healthcare, and other amenities in the area will also be considered.
What About Commercial Property Valuation in East London?
Along with residential properties, London is home to a number of commercial properties that offer a range of different business opportunities. Similar to residential properties, commercial properties will also need to be valued if they are being sold or bought. If you are considering selling a commercial property in London, there are a few additional factors that will be taken into consideration. Valuations will often include the property’s business potential, including the size of the property, nearby competition, and footfall in the area. In the case of commercial properties, the value will often be heavily based on the number of people that visit the area regularly and how easy the property is to get to. Because of this, commercial properties in London that are located close to major Underground and train stations, tourist attractions, and other popular areas tend to be priced higher compared to those that are on the outskirts or otherwise further away.
How Long Does a Property Valuation Last?
Both residential and commercial property valuations will only be valid for a limited amount of time due to market fluctuations and changes that can change the value over time. For residential properties in London, the valuation that you receive for your home will only be valid for around three to six months. Your surveyor will usually provide you with more information on how long you have until the valuation is no longer valid. This is worth keeping in mind if you are selling your home in London since if your home has not been sold after a certain amount of time it might be necessary for you to have a second valuation carried out. Improving the property or changes in the local area can also change the valuation and invalidate the latest figure.
Throughout London, property values vary based on location, features, proximity to amenities, and much more. Understanding the different factors that go into providing a value figure for your property is important if you are selling, buying, or remortgaging in London.