I didn't see this in Home & Garden Jess. No matter, but sorry for the delay anyway.
Extreme, you say? I should think it is. None of these people ever show any initiative, and take decisions for themselves. Of course the lender says it has to be done. They would say that. It means that someone else has the responsibility of ticking the box.
In hindsight, all renovations should be completed before re-valuation.
This case is largely drivel. It's most likely a simple proprietary textured wall covering. Even it were the old asbestos containing Artex, it should present no problem. It is only hazardous if easily crumbled (friable.) The process of removing it just makes things worse.
Any idea when the coating was applied?