Martyn Stones, Director of Technical Services at Countrywide Surveying Services, discusses the role of surveyors in the equity release market. Read on to find out more.
Unlike mainstream mortgage lending, our valuers are trained to understand that “the property is everything” in equity release and that consequently, much closer attention needs to be paid for example, to the longer-term saleability of the property – after all, lending isn’t for a two or five-year fixed term for start. In this vein, our later life lending clients also have some noticeably different requirements regarding the properties that they are prepared to lend on e.g. there may be strict limitations on the amount of flat roofing that is acceptable, whilst ex local authority flats and properties connected to private drainage arrangements involving more than four properties may also not be acceptable, to name but a few.
Our valuers also need to be empathetic and suitably sensitive in their approach, when visiting the homes of later life borrowers, who may for example, not have had their property professionally valued for some time and consequently may have unrealistic expectations about the value of their much-loved family home. Whilst also being one of potentially only a few people to visit the property during the lending process, our valuers also need to be mindful of any potential customer vulnerabilities and ensure that any related concerns in this respect are also reported to our clients in this respect under the relevant terms of our contractual obligations coupled with the lender’s guidance notes.
Finally, I was recently talking with someone who had been discussing the later life lending process with highly successful advisor in the sector and when asked what his secrets of success are and particularly in relation to the valuation process, he said that he always did his homework very carefully upfront to prevent any unwanted surprises or delays later in the process, not least regarding the likely value of the property but also regarding any elements of the property itself that might fall foul of the lenders requirements such as those outlined above. In the spirit of Consumer Duty and helping to ensure good customer outcomes this all seems very reasonable to me.
