Use evidence, not aspiration
Purchase price, market value, investment value and a post-works estimate are different measures. The structure must use the basis relevant to the proposed security.
Evidence the securityFCA-registered UK lender FRN 782472 (opens the FCA register in a new tab)
The valuation is not a formality.
The valuation anchors the security analysis and can change the available facility. Access, title, condition, planning and comparable evidence all influence how quickly the report can support a decision.
Read aloud by your browser
Bridging structure check
A £325,000 loan against a £500,000 property
65%
loan-to-value, against a 70% illustrative reference point
- Equity remaining
- £175,000
- Headroom to 70% LTV
- £25,000
Within a 70% illustrative LTV reference point.
A £325,000 loan against a £500,000 property is 65% loan-to-value; equity remaining £175,000.
Security risk: Your property may be repossessed if you do not keep up repayments on a loan secured against it.
Operator notesValue Condition and use Timing
What the valuation needs to establish.
A strong application makes the property easy to inspect and the relevant facts easy to verify.
Surface material issues early
Occupancy, disrepair, non-standard construction, planning, licensing and environmental issues can affect value, marketability and lender appetite.
Remove avoidable access delays
Confirm access, contacts, leases, plans and property documents before instruction. A fast valuation cannot compensate for missing information.
Practical context
The valuation can change both the amount and the route to completion.
A valuation is commissioned for the lender’s security decision. It may not adopt the borrower’s estimate or the price agreed between connected parties. The report can also identify legal, planning, condition or marketability points that need further work.
Borrowers can reduce friction by providing accurate property details, immediate access, tenancy and planning information, a schedule of works where relevant and evidence supporting the proposed exit. Hiding a weakness usually creates a later delay rather than a better outcome.
- Confirm the exact property, tenure, occupancy and charge position before instruction.
- Provide plans, leases, planning documents and works information in one pack.
- Do not size the transaction to an untested value with no margin for change.
Which suits you
Prepare for the valuation.
| Your situation | Usually the better fit | Why |
|---|---|---|
| The price was agreed between connected parties | Expect a full independent valuation | Connected prices are not relied on |
| The property is tenanted | Send leases and the rent schedule | Tenancies affect value and access |
| Works are planned | Send the schedule of works and costs | Supports a value after works |
| The deadline is tight | Book access before instruction | Access is the most common avoidable delay |
Worked example
When the valuation comes in low.
A buyer agrees £400,000 and plans to borrow 70%. The lender’s valuation comes in at £370,000.
Keep a cash buffer or a fallback for a low valuation before you commit to a deadline.
| Agreed price | £400,000 |
|---|---|
| Loan expected at 70% of the price | £280,000 |
| Lender’s valuation | £370,000 |
| Loan available at 70% of the valuation | £259,000 |
| Shortfall the buyer must fund | £21,000 |
Illustrative: lending is sized on the lender’s valuation, not the agreed price, at an illustrative 70% reference loan-to-value. Bridging finance is secured against property, which may be repossessed if repayments are not maintained.
Decision framework
Bridging valuations: use the comparison to make a funding decision.
The valuation protects the lender and tests the assumptions behind the exit.
Current market value
The value in the property’s present condition.
Restricted-sale assumptions
A shorter marketing period may produce a lower figure.
GDV
Relevant only where works and planning support a credible completed value; it is not the same as current security value.
Examples are educational only. Eligibility, pricing, security and final terms always depend on a formal assessment of your business, your documents and the facility proposed.
Who pays for the valuation?
The borrower usually pays, and the valuer reports to the lender. The cost is quoted before instruction.
How long does a bridging valuation take?
Often days once access is booked; complex or tenanted property takes longer.
Can I use my own valuation?
The lender instructs its own valuer, but your evidence (comparables, plans, leases) helps the report.
What if the valuation is low?
The loan reduces, or you add equity. You can challenge it with evidence, but plan for the possibility.
Official sources
Official guidance and legislation on the rules this page refers to. They explain the rules in general; take advice on your own position.
Lender view
A practical note from the lender.
BL
Bjorn Laku: commercial judgement
Bridging delays usually come from unclear security, weak exit evidence or legal details that should have been surfaced before the deadline became urgent.
Next step
Make the property ready to be underwritten.
Prepare access, title, tenancy, planning and works information before the valuer is instructed.