Loan Media Inc

For those considering Equity Release as a way of supplementing their income in retirement, there are a number of factors that need careful consideration. One of these is the property value, and whether it will provide a sufficient lump sum for immediate release or to have as an equity release drawdown facility.

Talk to any adviser, and they will tell you they have experience of submitting their clients application and valuation fee only to find that the surveyor down values the property, upsetting all the plans and expectations of the client.

From the advisers point of view this just means additional work, a new Key Facts Illustration and a change to the equity release application. For the applicant however, it could mean that the case does not proceed if the funds available would be insufficient for their needs. This could mean paying for a valuation that can not be used.

It is therefore vitally important that before completing an application for a lifetime mortgage or any other equity release product, you seek the advice of a qualified equity release adviser. Even if the adviser does not provide a home visit, they are well versed in carrying our research online to get a good idea of the value of the property so that you do not fall victim to the surveyor's pen.

As well as seeking advice, the internet provides a good deal of information that you can access to ensure you have a realistic idea of current property values yourself. Websites like Rightmove, OurProperty and Mouseprice, which are available to the general public, allow you to see actual property sale prices within your own postcode and surrounding area. The information on those types of websites is taken from the Land Registry's data and provides a much more reliable guide to what a property is worth. As we all know the asking price advertised is seldom the sales price achieved.

Seeking advice on the subject of house values really can reduce the likelihood of disappointment, and the risk of a wasted valuation fee. Whilst it's not possible to predict the valuation figure a RICS surveyor will arrive at with 100% certainty, as property sizes, styles and values can vary even between adjoining streets, knowing the ballpark that your property value is in, really can save disappointment later on.

A note of caution. Many people choose to request a market appraisal from their local estate agent. This in itself is not a bad idea, but all too often provides a view of the asking price rather than the likely selling price. If looking to your local Estate Agent you should ask for the anticipated selling price as well as the asking price. After all, the valuer appointed by the equity release provider, will not use asking prices when looking at comparable properties to arrive at his valuation. He will rely on properties of similar type that have been sold within the last 3 to 6 months.

If having completed your own research, you find you believe your property value to be higher than the adviser's assessment; it may be worthwhile playing devils advocate, and asking yourself the following questions.