When buying or refinancing a property, it’s common to assume that all valuations are the same. However, a market valuation and a mortgage valuation have very different purposes, and understanding the difference can protect buyers from overpaying, unexpected costs, or false assumptions about a property’s true worth.
In Cornwall’s fast-moving property market, clarity matters. Here’s what homeowners, buyers, and investors need to know.
What Is a Mortgage Valuation?
A mortgage valuation is carried out on behalf of the lender, not the buyer. Its purpose is simple:
To confirm that the property provides sufficient security for the loan being requested.
It is:
- Required by most mortgage lenders
- Designed to protect the lender’s financial risk
- Often brief and limited in detail
- Not a survey, and not a full assessment of condition
A mortgage valuation is not carried out to protect a buyer’s interests in the property or its condition. The valuer will only assess the property where relevant to the lender’s lending criteria, and it is not a survey.
In some cases, the lender may not even visit the property. Some mortgage valuations are performed as:
- Drive-by assessments
- Desktop valuations using data and comparables
- Automated valuation models (AVMs)
A mortgage valuation does not identify defects, repair needs, or potential risks to the buyer.
What Is a Market Valuation?
A market valuation determines the current open-market value of a property, based on:
- Location and local market activity
- Comparable recent sales
- Property size, type, and features
- Condition and presentation
- Unique attributes or risks
Unlike a mortgage valuation, a market valuation identifies the property’s true value in today’s marketplace. It is used for:
- Independent valuation for buying or selling decisions
- Divorce and matrimonial settlements
- Probate and inheritance matters
- Shared Ownership and Help to Buy
- Tax and financial planning (Capital Gains Tax, Inheritance Tax, etc.)
- Property investment analysis
A professional market valuation is independent, evidence-based, and tailored to the client.
Typical Key Differences at a Glance
| Feature | Mortgage Valuation | Market Valuation |
| Who’s it for? | The lender | The buyer or property owner |
| Purpose | To assess loan security | To determine true market value |
| Property inspection | Minimal or none | Typically in-person and more detailed |
| Identifies defects | Not typically, unless relevant to lender criteria | Assesses overall general condition but is not a survey; unknown defects may not be identified |
| Suitable for negotiations | Not typically | Yes, depending on purpose |
The Risk of Relying Only on a Mortgage Valuation
Many buyers mistakenly believe that a mortgage valuation confirms:
- The property is in good condition
- The price is fair
- No major repairs are required
However, this is not the case. A mortgage valuation may overlook:
- Structural issues
- Damp and timber decay
- Roof defects
- Electrical and heating risks
- Leaks
- Coastal/weather-related deterioration
These issues can lead to thousands of pounds in unforeseen repairs, especially in Cornwall, where older buildings and coastal exposure are common.
Why a Market Valuation Can Save Money
A market valuation can help buyers:
- Avoid overpaying
- Support price negotiations
- Identify value risks based on condition
- Strengthen decision-making
For sellers, it can help:
- Identify a realistic asking price
- Reduce sale times
- Reduce the risk of fall-throughs
- Provide confidence when entering the market
Cornwall’s Market: Why Accuracy Matters
With Cornwall continuing to attract strong buyer demand, holiday home interest, and coastal premiums, pricing can be complex. Two similar properties can vary widely in value depending on:
- Location
- Condition, construction, specification, fixtures and fittings
- Size, age, gardens, parking, outbuildings, and garages
Final Thoughts
A mortgage valuation protects the lender.
A market valuation protects you.
If you’re buying, selling, settling an estate, assessing tax liabilities, or managing property assets, a market valuation offers accurate, evidence-based insight into your property’s true worth.
Need a Professional Market Valuation?
Cockrams Surveyors provides valuations by RICS Registered Valuers across Cornwall, offering honest, expert guidance backed by local market knowledge.
Contact us today to discuss your property and arrange a valuation.
