Every bridging loan rests on the value of the property used as security. The valuation sets the maximum loan, informs the lender’s view of risk and can affect the timetable. Understanding how it works helps borrowers avoid surprises.
In short: A bridging lender will usually instruct an independent RICS-registered valuer to report on the property. The report may include the market value, a restricted sale value over a shorter period, and, for projects, a value after works. The loan is sized against these figures.
Who carries out the valuation?
Most lenders instruct a surveyor from their own approved panel, regulated by the Royal Institution of Chartered Surveyors (RICS). The valuer acts for the lender, not the borrower, and the borrower normally pays the fee in advance.
What figures might the report include?
- Market value: the estimated price in an open market with a normal marketing period.
- Restricted sale value: the price expected if the property had to be sold within a shorter period, such as 90 or 180 days.
- Gross development value or value after works: for refurbishment and development, the expected value once the work is complete.
- Rental value, where the exit depends on letting.
How can delays be avoided?
Provide access details promptly, share any planning documents, leases and schedules of works, and give the valuer recent comparable evidence if you hold it. A clear picture of the property and the plan helps the valuer report quickly. For how valuation feeds into loan size, see our guide to loan-to-value, and for the end-to-end process, how bridging finance works.
Frequently asked questions
Who pays for a bridging loan valuation?
The borrower usually pays the valuation fee, even though the valuer is instructed by and reports to the lender.
What is a restricted sale value?
The price a valuer expects the property to achieve if it had to be sold within a shorter period, often 90 or 180 days.
Can I use my own valuation report?
Lenders normally require a valuation from their own panel of RICS-registered surveyors, addressed to the lender.
How long does a bridging valuation take?
It depends on the property and the valuer’s availability. Prompt access and complete documents help avoid delays.
Important information
Ponte Finance PLC is a private lender, not a bank, and is not authorised or regulated by the Financial Conduct Authority. Lending is for business purposes only and is not available to consumers or for property occupied, or to be occupied, by the borrower or a family member as a home. All loans are secured against property, and the property may be repossessed if repayments are not maintained. This article is for general information only and reflects publicly available data at the date of publication. It does not constitute an offer of finance, a forecast, or financial, investment, tax or legal advice. Ponte Finance PLC is registered in England and Wales, company number 15859004, registered office 225 Clapham Road, London SW9 9BE.