Mortgage Valuation lower than property worth

Mark_petty · 9 September 2006 at 5:15PM

Hi

I'm in the process of selling my shared ownership flat. The couple who are buying it are getting a mortgage via portman. They had the valuation survey last week and it came back that they valued it £6500 less than what I got it valued at.

The thing is because its a shared ownership proerty at the very beginning I had to get an external valuation company to come in and value it, this cost me £150. But still the portman value it at £6500 less.

Does anyone know what happens now? I still have the valuation certificate, will that help to convince the Portman that they have made a mistake.
A smaller flat in our building sold for more than the portman are suggesting a year ago.

Has anyone ever convinced a lender that they have valued a property wrong?

Thanks in advance

UK007BullDog · 9 September 2006 at 6:22PM

It depends on the lender. In the case of the Portman it could be that they will not accept any other surveyors survey or revaluation.

With some lenders one could argue.

Is the couple buying from you using a broker? He might be able to argue the case for them to the lender.
From the couples point of view, if they have paid for the survey up front they might jump ship, if they go with a new lender they would have to pay a survey fee again. If however they went with a free surveyor deal they might be able to go and find a new lender and then either go survey free again or pay out of their pockets the difference. However this means more credit checks on them which is very bad for them getting a mortgage.

Remember a survey is not 100%, send in 10 surveyors and you will get 10 different reports. Its all very subjective. Plus they will go on the state of the property compared to those in the area and the prices they have sold for. I also have a feeling that surveyors are down valuing across the board, especially flats that were build in the last 0 to 48 months.

Carter_2 · 9 September 2006 at 6:34PM

If I was the buyer I wouldnt be in any hurry to get another survey done. A second one could also turn out the same way. The difference seems to be quite a bit considering it is also 25% ownership though.

Mark_petty · 9 September 2006 at 6:34PM

Thanks

They have gone directly to the Portman. We will just have to wait and see what the Portman say

Mark_petty · 9 September 2006 at 6:43PM

Carter wrote:

If I was the buyer I wouldnt be in any hurry to get another survey done. A second one could also turn out the same way. The difference seems to be quite a bit considering it is also 25% ownership though.

Sorry not sure what you mean when you say the difference seems to be quite abit? its 50% ownership.

I could understand if we came up with the amount but we paid an external surveyor to come and value it so we had a fair price.

UK007BullDog · 9 September 2006 at 6:51PM

Do you know the name of the survey company the Portman used?

Portman = Mortgage Works. We placed a mortgage with Mortgage works and they downvalued. They would not budge so had to go to Mortgage Express in the end. They said all their surveys are final. No discussions.

Carter_2 · 9 September 2006 at 7:00PM

Sorry Mark I do not know why I thought it was 25% shared ownership. What I meant was the difference between valuations seemed quite a bit in only one year especially as it was shared ownership (ie not purchasing the whole property).

I know Portman can use SPS Surveyors (SecureMove Property Services Ltd) if that is any help?

MortgageMamma · 9 September 2006 at 7:15PM

Hi

There is plenty of scope for appealing a mortgage valuation with any lender. Firstly, if you can provide evidence of what the other property that was smaller sold for a number of years ago they will take this into account - you can get this information from www.ourproperty.co.uk

Then, if you can find out either from the above website and/or local estate agents what similar properties in your road have sold for in the last 12 months that would support your case also. The copy of the survey you have done will also back it up. Finally, you could get an estate agent to value your property for sale purposes, ask them to confirm the value in writing to you. This should also help.

Don't be afraid to challenge a lender on issues such as this, if you are prepared to pay a revaluation fee they could send somebody else around from another firm to look at the property again.

As always, you would have to be absolutely certain that your property is worth mroe before doing this.

For info, I have not seen any evidence of down valuations, particularly with Portman and I must have given them about 20 cases since January.

UK007BullDog · 9 September 2006 at 7:37PM

We do a lot of BTL and use mortgage works more than Portman. Mortgage Works would not budge and got quite rude with us even asking if we could kinda discuss the survey.....

Colleys run a very tight ship and had to go elsewhere as they down value a lot of property. It could be their way of "helping" to keep the lid on the high price rises?

But then what is a down valuation? We look on websites to check how properties similar to the clients sell for. Then of course every client is proud of their property and think they will get top "dollar" and a little bit more. But this might be totally over exagerated. Plus the estate agents as well have their role in the whole process by inflating the prices as well, so if it does not sell it gets reduced to the "real" market place price.

Mark_petty · 9 September 2006 at 7:43PM

UK007BullDog wrote:

Do you know the name of the survey company the Portman used?

Portman = Mortgage Works. We placed a mortgage with Mortgage works and they downvalued. They would not budge so had to go to Mortgage Express in the end. They said all their surveys are final. No discussions.

Nope not sure what company Portman used, will ask the buyer.

TEDDYRUKSPIN · 9 September 2006 at 8:01PM

Basically the ball is on the customer who is buying your flat/house. Every bank/building society use a special broker of surveyors who come to your house and carry out the survey.

Being honest, if you don't want to budge on the new valuation price, just don't sell it at that price? No sell equal no loss!

Mortgage Valuation lower than property worth

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