Development, change of use and impact on views can have a huge effect on value.
Understanding a location is critical. A mortgage valuation makes many assumptions and is based on what the valuer sees at a particular moment in time. Just as the valuer cannot see an environmental or flood risk, they will not see a development risk.
A leafy edge of town location with a rural views could be transformed by a new housing development or, worse still, industrial/commercial buildings. We have identified numerous examples where a significant change to an area would impact the value of a property and expose lenders to risk of over valuation. Equally, the property may represent a solid investment for lending security and have hidden value against which a client may enjoy capital growth and a positive relationship with their lender.
Make sure the solicitor uses DevAssist products, or see some of the many firms that do on our clients page.