What is Valuation Fee?

Full Definition

A valuation fee covers the cost of a mortgage valuation, a relatively brief inspection carried out by a surveyor on behalf of the lender purely to confirm the property is worth at least the amount being lent against it, and to flag any obvious, serious defects that might affect that value. It is not the same as, and does not replace, a homebuyer's report or a full structural (building) survey, both of which a buyer can commission separately, at their own additional cost, for a much more detailed assessment of the property's condition -- something a purely lender-focused mortgage valuation does not attempt to provide, which is why relying on the mortgage valuation alone can mean a buyer misses defects that only a fuller survey would catch. Many mainstream mortgage lenders now offer a free standard valuation as part of a mortgage product, particularly on residential purchases and remortgages, though a fee may still apply for larger or non-standard properties, or where an accelerated or more detailed type of valuation is required; buy-to-let and commercial mortgage valuations are also more likely to carry a separate charge. Because a mortgage valuation is arranged for, and reported to, the lender rather than the buyer, some lenders will not release a copy of the valuation report to the applicant at all, or will only share a limited summary, reinforcing that it should not be treated as a substitute for the buyer's own independent survey.

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