12 Questions with a Specialist Property Finance Broker: Valuations, Risks, and What It Takes to Get a ‘Yes’

Securing property finance in 2025 is not what it used to be. Deals that sailed through two or three years ago are now pulled apart by lenders, scrutinised line by line by underwriters, and down-valued by cautious surveyors. For investors, this has created a frustrating reality: optimism alone won’t get a deal funded anymore.

That’s where specialist brokers earn their keep. Having worked on hundreds of transactions – from small refurb projects to multi-million-pound developments – I know that success often comes down to three things: realistic assumptions, professional presentation, and a clear exit plan. 

At the recent PPN Cambridge panel discussion, hosted by the brilliant Joanna Carr, I answered some of the most common questions property investors ask me about today’s market. Here’s a selection, with my insights drawn from real-world deals:

1. How do market conditions influence the way you prepare property deals?

Rates and valuations are the two main drivers of whether a commercial property deal will work. I always stress-test finance against higher interest rates than we see today because, as the last two years have shown, markets can shift quickly. At the same time, valuers are far more cautious than they were during the boom years, so any appraisal must assume a more conservative approach to GDV (Gross Development Value).

The practical effect of this is that deals must be packaged with a greater margin of safety. Investors can no longer rely on optimistic assumptions or the hope that valuations will rise quickly. Instead, every deal must stand up to the scrutiny of lenders, valuers and underwriters. Building in this resilience upfront gives a project the best chance of surviving changes in the market.

2. Where do you see the biggest disconnect between property investors and lenders?

The inherent tension is that commercial property investors are naturally focused on the upside – they see potential, future demand, and long-term capital growth. Lenders, on the other hand, are really only looking at today’s risk profile. Their priority is whether the loan can be repaid safely under current conditions. This gap between optimism and caution is where deals can often fall apart.

My role as a broker is to bridge that gap by finding lenders who are aligned with the specific deal. That means knowing which lenders are open to a particular strategy – whether it’s a commercial-to-residential conversion, a refurb bridging loan, or a full ground-up new-build development – and being able to present the case in a way that reassures them. It’s about matching the investor’s vision (and available funds) with the lender’s risk appetite.

3. What is the most common issue with valuations?

Over-optimistic GDVs are one of the fastest ways to derail a deal. Developers understandably want to highlight the full potential of a project, but valuers are tasked with grounding those expectations in today’s market. If the valuation comes in lower than the developer’s estimate, the lender will always work off the valuer’s number, no matter how compelling the developer’s assumptions might be. Lenders will almost never overrule a valuer.

This means that developers must approach valuations with realism. Inflating numbers not only risks rejection but can also damage credibility with lenders. A more pragmatic strategy is to base projections on comparable evidence and recent transactions, even if those figures feel conservative. A deal that stacks up under cautious valuation assumptions stands a much greater chance of being approved.

4. What about rental assumptions – are they a source of friction too?

Absolutely. Rental income assumptions are another common point of contention. Investors often expect their properties to achieve the highest possible rent, especially if they’ve had positive experiences with past tenants or premium locations. Lenders, however, are far more cautious and will stress-test rental income at levels below the market peak.

It’s not unusual for a valuer to assess the ‘market rent’ at a lower figure than the current actual ‘passing’ rent. Lenders will usually default to the valuer’s figure, even if it feels unfair to the investor. That’s why I always advise clients to run their numbers at a stress-tested rent level. If the deal works under conservative assumptions, then it’s far less vulnerable to challenge.

5. From a lender’s perspective, what are the top reasons a deal gets rejected straight away?

I spent a large part of my career working at large global banks myself, so I have a really good insight into how they assess risk. The three fastest deal-killers are poor credit history, unrealistic numbers, and a weak or absent exit plan. 

Lenders want to know not just that the loan can be serviced during the term, but exactly how it will be repaid at the end. Particularly for bridging and development finance, this is the single most important thing lenders care about. If there’s no credible exit strategy – whether by sale or refinance – the deal will be rejected almost immediately.

Unrealistic figures and assumptions are other red flags. Overinflated GDVs, underestimated build costs, or unrealistic rental figures will quickly undermine a lender’s confidence in the borrower’s professionalism. And while poor credit isn’t always fatal, lenders will want a clear explanation and evidence that the risk is being managed. For example, does the developer have other sources of income or perhaps other properties in the background, that can be leaned on, if things don’t go quite to plan? Transparency and sound preparation are the keys to overcoming these hurdles.

6. How important is presentation when submitting to a lender?

Presentation is absolutely critical. Lenders may be reviewing dozens of deals each week, and if our deal submission ‘package’ looks incomplete or poorly thought through, it will go to the bottom of the pile. A strong presentation is clear, professional, and answers the lender’s likely questions before they even ask them. 

This is a key part of your broker’s role – to package every deal in a way that presents all the information to the lender as comprehensively, and hopefully compellingly, as possible.

This doesn’t mean glossy graphics – it means well-structured, evidence-backed information. A robust presentation shows that the borrower understands the risks, has planned for contingencies, and has the necessary commitment and experience (either personally or within their team) to deliver the project more or less on time, and more or less on budget. 

In short, a polished, professional submission can be the difference between approval and rejection.

7. How do you stress-test deals before taking them to lenders?

My philosophy is to stress-test harder than clients expect. I’ll model scenarios with higher interest rates, lower rents, and more conservative valuations than they may have assumed. The reason is simple: if the deal still works under tougher conditions, then it has a strong chance of approval. If it only works under perfect circumstances, it’s probably not ready for lenders.

This approach can be frustrating for investors who are eager to move quickly, but in practice, it saves them time and money in the long-run. There’s nothing more frustrating for an investor or developer than spending a few thousand pounds on a valuation, only to find out that their GDV estimate is way off. 

By identifying weaknesses early, we can adjust the deal structure, equity component, or exit plan before it ever reaches a lender’s desk. It’s far better to find out now than to be rejected later.

8. If the numbers don’t quite stack up, what options are there?

Often, the solution isn’t as complicated as investors think. Reducing the loan amount, bringing in additional equity, or agreeing to roll up interest (or even to service the interest, to deliver more funds on Day 1) can all help to make a deal more viable. The key is to show lenders that the borrower is flexible and committed to finding a workable structure.

Each of these adjustments demonstrates that the investor understands the lender’s concerns and is willing to mitigate risk. Sometimes that might mean a smaller profit margin in the short term, but it can also mean unlocking a deal that would otherwise have been declined. Flexibility is often the difference between getting the deal done and walking away empty-handed.

9. How do you handle things when a surveyor down-values a deal?

Down-valuations are part and parcel of today’s market. While they can be frustrating, the worst thing an investor can do is panic. The first step is to review the valuer’s report carefully. If there are factual errors or missing comparables, these can and should be challenged. Lenders will sometimes reconsider if a legitimate case is made.

If the valuation still stands, switching to a different lender may also be an option. Different lenders work with different surveyor panels, and valuations can vary significantly between firms. While it may feel like a lottery at times, persistence and adaptability often pay off. The key is not to take a down-valuation as the end of the road.

10. What’s your advice if a project only works at one optimistic valuation figure?

If a project only works at the top end of a valuation range, then the reality is it’s probably too risky. Valuers and lenders will rarely align with the most optimistic projection. If your deal depends on that one top-end figure, it’s better to walk away before committing capital, time and emotional energy.

Investors sometimes see walking away as a failure, but in truth, it’s a form of discipline. Remember the old adage: “a good gambler has no memory”. In other words, try not to get too emotionally invested in any one project. Passing on marginal deals preserves capital for stronger opportunities. In a market where caution rules, focusing on projects that work under conservative assumptions is the smartest way to build sustainable success.

11. Why do you think most commercial mortgage deals fall apart?

Most deals don’t collapse because the idea is inherently bad. They usually fail because the numbers don’t stack up. Lenders want to see feasibility under realistic conditions, and if the deal can’t demonstrate that, it won’t progress. The good news is that many ‘failed’ deals can be reshaped into viable ones with the right adjustments.

This is why working with an experienced broker matters. We know how to structure the numbers, stress-test assumptions, and present the case to lenders in a way that maximises the chance of success. Many projects that initially appear unworkable can be revived with tweaks to loan size, equity, or exit strategy. It’s about seeing the deal through the lender’s lens.

12. What’s the single best tip for investors who want to increase their chances of a ‘yes’?

The golden rule is to make it as easy as possible for a lender to approve the deal. That’s easy to say, of course! What it means in practice, is being well-prepared, realistic in your assumptions, and crystal clear about your exit. If you can show the lender that their risk is low and their repayment is secure, you’ve already done most of the work.

Of course, having a broker who specialises in your type of deal makes all the difference. Lenders trust brokers who consistently bring them well-structured cases. A good broker doesn’t just submit the deal – they shape it, prepare it, and negotiate it in a way that aligns with what the lender wants to see. That partnership can be the difference between a yes and a no.

Final Thoughts

In today’s market, property finance for investors and developers isn’t about chasing the most optimistic scenario – it’s about structuring deals that are resilient, realistic and lender-ready. 

For investors, the challenge is no longer simply finding opportunities, but proving that those opportunities can withstand robust lender scrutiny. And for lenders, the goal is to minimise risk and protect their capital. while still demonstrating flexibility and an appetite to enable projects to move forward.

As a specialist property finance broker, my role is to stand in the middle of that equation. I bring deep knowledge of lenders’ criteria, valuations, and deal structures, and I use that knowledge to give my clients the best possible chance of approval. If you’re serious about making property deals stack up in today’s market, don’t leave it to chance. The difference between a ‘no’ and a ‘yes often comes down to preparation – and the right broker.

👉 If you’d like to talk about your next project, you can reach me at Clear Idea Finance.