The job losses come as part of a bigger move to merge the two existing support centres into one by the end of October.
Colleys has suffered a fall in demand for valuations and surveys as the number of housing transactions shows a marked decline year-on-year.
Employees were notified on Monday of the move which will affect 106 valuers currently operating throughout the UK and a further 34 business processing staff in Birmingham.
The Preston office will absorb the work from Birmingham as well as continuing to manage work from Preston, with staff numbers there to stay the same.
The unions Accord and United were notified of the decision to streamline operations beforehand and Lloyds Banking Group says it will continue to consult with them.
The group is looking to redeploy staff within the company where possible, and will be offering voluntary redundancy packages for staff that cannot be retained.
Brian Abram, head of valuation and surveying services, says: “Regrettably, the changing nature of our market makes this move necessary.
“It is essential that we adapt to the prevailing market conditions to ensure that we are better positioned for current and future market conditions.
“Following these changes, Colleys will continue to be one of the biggest valuation companies in the country.”