Mortgage guide
How Valuation Works for Expat Investment Properties
Compare bricks-and-mortar, hybrid and yield-based valuations, and how each method affects the property value used for lending.
- Published
- 13 Apr 2026
- Last reviewed
- 13 Apr 2026
- Reading time
- 2 min
How Valuation Works for Expat Investment Properties
Brick and Mortar Valuation
This method is based on comparable residential property sales in the local area. It is commonly used for standard buy to let properties and smaller HMOs.
Hybrid Valuation
A hybrid approach considers both comparable sales and rental income. It may be used where a property has some commercial characteristics but still aligns partially with residential comparables.
MV1 / Yield-Based Valuation
This method values a property based on the rental income it generates, using an investment yield. It is commonly used for larger HMOs, serviced accommodation, and social housing properties.
Why Valuation Method Affects Borrowing
The valuation method directly influences the property value used for lending calculations. Yield-based valuations can result in higher or lower values depending on income performance, which in turn affects maximum borrowing and lender choice.
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