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← The Refinance Step
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Question
Why does a RICS surveyor's valuation at refinance focus on comparable sales rather than the investor's refurbishment costs?
1
Because market value reflects what a buyer would pay in the current market, not what an investor spent — if local comparables only support a lower valuation, the refurbishment expenditure is irrelevant to what the lender will lend against
2
Because refurbishment costs are considered confidential commercial information that surveyors are not permitted to access
3
Because RICS regulations prohibit surveyors from considering improvement costs in their assessments
4
Because lenders want to avoid over-lending on properties where costs have been inflated by unqualified contractors
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