Shawbrook extends lending remit with desktop valuations

The lender is also resuming lending in Scotland which it was forced to pause earlier this month due to the coronavirus restrictions.

Shawbrook will be using the desktop valuations process to support its existing automated valuation model (AVM) usage which allows it to lend at up to 75 per cent loan to value on single dwellings.

It will build desktop commentary into case applications that may not meet AVM requirements, allowing more cases to be considered.

“Shawbrook has also issued documentation disclosing the full split of their approach to valuations across all application types, along with a detailed fee scale in support of its panel of professional broker partners,” it said.

“This allows property investors and landlords to benefit in spite of the current restriction in valuation instructions, and helps to move applications forward in support of funding requirements.

“Given the ongoing uncertainty, having a set fee scale also manages any cost expectations on day one which provides additional comfort for both broker and client,” it added.

Guidelines

Desktop Assessment will be restricted to an upper value of £1m within the M25, and £500,000 for all other locations.

For a residential flat, up to four floors the lender will use an AVM and desktop. If these are satisfactory, there will be no further valuation requirements.

For small houses in multiple occupation (HMO) or semi-commercial property it will only use the desktop valuation and a formal offer will be issued subject to physical re-inspection.

For a large HMO, multi-unit block, commercial property, HMO conversion or flat over four storeys a formal offer will be subject to a full valuation in future.

Important issue

Shawbrook head of sales Gavin Seaholme said valuation was an important issue regardless of the current challenges, and building desktop commentary to support AVM applications was a straightforward solution to cater for this situation.

“The key is allowing both AVMs and/or desktop valuations in order to arrive at a completion,” he said.

“The fact that brokers can instruct the desktop day one and have the comfort of one set fee inclusive of the reinspection, is the level transparency we look to apply across the board.

“In terms of our stance around lending into Scotland, this was always something that was to be a temporary measure, and we are delighted to be able to support this region moving forward.”