The secured property is independently valued for suitability and market value.
All secured property is valued by a panel valuer under instructions from Apac. An Apac panel valuer has to qualify with necessary experience, be a member of a professional valuer body or association, and have professional indemnity insurance.
The market valuation is required to be conservative and valuers are required to comply with specific written guidelines from Apac relating to valuation and independence, including the need for the valuation to be used for loan security purposes. Valuations will generally provide two or three valuation methods. All construction/development loans are assessed on a “cost to complete” basis.
For building developments a quantity surveyor is engaged to certify payments and update costs to complete as the project proceeds.
We will have secured property revalued whenever we consider that a significant change may have occurred in the property’s value, and at any other time we consider it to be in the best interests of Investors.
Please note that for investments that hold second ranking mortgages over the secured property, we may be unable to obtain our own independent valuation. In those circumstances, we will provide the valuation information that we have been able to obtain about the secured property.