The Intermediary – January 2026 - Flipbook - Page 59
L AT E R L I F E L E N D I N G
Opinion
Valuations sit at the
heart of lifetime
mortgages
A
rguably, lifetime
mortgages place the
valuation process
under greater
scrutiny than
most areas of the
residential market. Shis in demand
over the last three to five years have
only sharpened that focus.
The market disruption that followed
the 2022 mini-Budget highlighted
this clearly. Rapid rate rises reduced
affordability and tightened loan-tovalue (LTV) limits, slowing activity
across the sector.
While volumes fell for a period,
the underlying need to access housing
wealth did not change. Pension
income remained under pressure;
household costs rose and property
continued to hold a growing share
of personal wealth. As rates eased,
demand returned, bringing valuations
back to the centre of lending decisions.
Recent UK Finance data shows
39,950 new loans advanced to older
borrowers in Q3, up 18.4% year-onyear. The value of this lending was
£6.5bn, up 24.7% compared with
the same quarter a year previously.
Within this, there were 6,040 new
lifetime mortgages advanced in Q3
2025, a year-on-year increase of 3.4%.
Managing expectations
Later life lending now represents close
to 8% of all residential loans and as
volumes grow, the consistency and
accuracy of valuations become even
more important.
The valuation process itself is
familiar one. Surveyors rely on the
comparable method, using recent
sales, local market knowledge
and clear evidence to reach a fair
market value.
Access to historic sold data, floor
plans and images allows surveyors
to test assumptions and apply
adjustments where properties differ
in size, condition or layout. What
changes in later life lending is the
weight given to certain risks.
Unlike mainstream lending, where
risk reduces over time, lifetime
mortgages place the property at the
heart of the lender’s exposure for
the full term of the loan. Condition,
maintenance and saleability therefore
take on greater significance.
Issues such as roof condition, damp,
poor upkeep, cladding concerns or
restrictive lease terms are assessed
not just for their current impact, but
for how they may affect a sale many
years in the future. Expectation
management also plays a key role in
valuation outcomes. Many later life
borrowers have owned their homes
for decades, may have limited insight
into current market values and
consequently may have unrealistic
expectations about the value of their
much-loved family home.
Online estimates oen overstate
value or fail to reflect local conditions.
When the reported value differs from
expectation, it can feel like a reduction
rather than a fair assessment. Early
guidance from advisers, grounded
in sold price evidence, can help
align expectations.
Our valuers also need to be empathic
and suitably sensitive in their
approach when visiting the homes of
later life borrowers, especially as they
will be one of potentially only a few
people to visit the property during
the lending process. Therefore, our
valuers also need to be mindful of any
potential customer vulnerabilities
and ensure that any related concerns
are also reported to our clients in this
respect under the relevant terms of
our contractual obligations, coupled
with the lender’s guidance notes.
ANDREW PETERS
is associate director of technical
services at Countrywide
Surveying Services
Place matters
Regional differences further shape
valuation considerations. In London,
the South East and the South West,
higher property values oen support
larger advances but also bring greater
scrutiny due to higher exposure.
In many Northern regions,
lower average values mean tighter
margins, making accuracy even
more important.
Capacity and expertise also affect
valuation quality. High-demand areas
can stretch surveyor availability,
and later life lending requires an
understanding of specific lender
criteria and long-term risk. Training
new surveyors takes time, and
experienced professionals still need
support to apply guidance consistently
across complex cases. Therefore
ongoing investment in skills and
oversight remains essentia.
Looking ahead, lifetime mortgage
demand is expected to continue its
gradual increase. As more people
reach retirement with wealth tied
up in property, valuations will play
an even greater role in protecting
both customer outcomes and
lender security.
For lenders, the priority is clear.
Strong valuation practice, consistent
standards and early alignment of
expectations are critical. When
valuations are robust, they provide
the confidence needed to support
sustainable growth in the later life
market and ensure the homes securing
these loans remain sound for the
long term. ●
January 2026 | The Intermediary
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