The mortgage valuation is for the benefit of the mortgage lender. It is designed to give enough information for the lender to decide whether the property is safe to lend on, and up to what amount. In most cases, the bank will pay the valuer for their report but in some instances, you the borrower may be asked to arrange for the valuation to be carried out.
The valuation is based on the valuers knowledge of comparable prices in the locality. It may also give a “minimum reinstatement value”, which is the amount of money it would take to rebuild the property from scratch, should it ever be necessary. Later, the mortgage lender will ask to see evidence that a suitable buildings insurance policy is in place, together with confirmation that you are covered for the minimum reinstatement value
Selecting a valuer
Most banks will have a panel of valuers to choose from. Many of these will be chartered professionals and therefore be members of the Society of Chartered Surveyors Ireland. Ask to see if they are chartered because they are then required to carry out the valuation, to what is recognized as the international best practice, ‘RedBook’ standard.