Definition
A professional assessment of a property's market value, carried out by a qualified surveyor for lending, investment, or transactional purposes. For secured lending, lenders require a formal Red Book valuation prepared by a RICS-registered valuer. Development finance valuations will typically include the current site value, the gross development value on completion, and may include a valuation at various stages of construction.
See also
Closely related terms.
Red Book Valuation
A formal property valuation prepared in accordance with the RICS Valuation Global Standards, known as the Red Book.
RICS (Royal Institution of Chartered Surveyors)
The leading professional body for surveyors and property professionals worldwide, setting standards for valuation, surveying, construction, and property management.
Gross Development Value
The total market value of a development upon completion, encompassing all units and any commercial elements.
LTV (Loan to Value)
A lending ratio that expresses the loan amount as a percentage of the current market value of the property being used as security.
Further reading
Guides that touch this term.
Guide
RICS Red Book Valuations for Development: What Lenders Require
A comprehensive guide to RICS Red Book valuations in development finance, covering what lenders require, how valuations are structured, and how to ensure your scheme is accurately assessed.
11 min read readReadGuide
Development Finance Application Checklist: Documents You Need
A comprehensive checklist covering every document lenders require for a development finance application, from development appraisals to contractor tenders and planning evidence.
11 min read readReadGuide
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 min read readRead
Where it shows up
Finance products using this term.
Service
Development Finance
Senior debt funding for ground-up residential and commercial developments.
From 6.5% p.a. · Up to 65-70% LTGDVReadService
Bridging Loans
Short-term finance for acquisitions, auction purchases and time-sensitive deals.
From 0.55% p.m. · Up to 75% LTVReadService
Commercial Mortgages
Long-term finance for commercial property acquisition and refinancing.
From 5.5% p.a. · Up to 75% LTVRead
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