Arnold & Baldwin has introduced a number of remote valuation options for lenders, enabling them to lend more confidently at higher LTVs, on larger loan sizes, and on complex buy-to-let mortgages, including HMOs.
Working in conjunction with Property Risk Inspection Ltd, the chartered surveyor has introduced a menu of different approaches available to lenders to remotely value a property, providing 80% coverage of all properties in England.
The first option is a traditional desktop valuation by a RICS registered valuer. This includes Ordnance Survey map validation, general insurance qualification, flood risk assessment, subsidence risk, and collation of online datasets to establish the market valuation.
Where there is insufficient data to rely on the desktop valuation, perhaps because the property has been recently refurbished or extended, and access is not possible as the occupant is self-isolating, the vendor can take geotagged, time restricted photos of the key property components and upload them straight to the surveyor to strengthen the remote valuation using the Property Risk Inspection ‘MyHomePhotos’ application.
As a further step to manage risk and provide added confidence, Arnold & Baldwin can send a Property Risk data gatherer to take additional external photos and measurements, providing street views, and assessment of land and outbuildings for more unusual properties.
Arnold & Baldwin is also able to arrange a physical internal inspection at a later date to validate the original valuation where lenders require this as part of their funding lines.
Joe Arnold (pictured), managing director of Arnold & Baldwin, said: “Like all businesses, we have needed to adapt and evolve very quickly in recent weeks. Physical property inspections are still possible in some situations and RICS will soon be announcing guidelines to facilitate a safe way for more inspections to be carried out, more frequently.
“Realistically, however, remote valuations are going to be an integral part of the market for quite some time and so we have introduced a menu of options for lenders that addresses some of the limitations of remotely valuing a property.
“Lot of feedback suggests that properties fail a traditional desktop valuation because there isn’t enough data, and so we have identified ways that use technology, creativity and expertise, to provide the extra information that’s required.
“Traditional desktop valuations can exclude significant parts of the market. For example, there are often restrictive parameters on loan size, which can leave high value clients without any options. Similarly, many non-bank specialist lenders have restrictions on the use of remote valuations as part of their funding lines. We believe that our solution addresses many of these issues and would welcome a conversation with any lender that wants to discuss how working with Arnold & Baldwin can enable them to grow their lending in the coming months.”