When asked if Lenders should have the right to withhold valuation reports, Naismiths Managing Director, Blane Perrotton had this to say to Development Finance Today;
“If the developer has grossly exaggerated the value of the finished project or hugely undervalued the projected cost of construction, the valuation will send alarm bells ringing, allowing the lender to make an informed decision. However, in these instances, the lender would almost certainly share the valuation with the developer, so any shortcomings, exaggerations or uncertainties can be addressed.”