bank got me in wrong LTV bracket !!!

emmaBZ · 20 August 2008 at 3:57PM

hi can anyone shed any light on this ......we are looking to fix for 5 yrs at present our bank has our house estimated valuation at £143000 now i know for a fact its worth more like £200000.....we are a semi and along road a mid terrace is on market for £192000 and most sell around here for that around price , now problem is our mortgage is £120000....putting us at 85% LTV when if they had valuation correct it would put us well below the 75% LTV ..( WHICH MAKES A DIFFERENCE WHEN WE LOOK AT INTEREST RATES for fixed 5 yrs ) .i have been told i have to pay for it to be revalued aprox £350 ... but i dont know how they came up with the current estimated valuation....we bought the house on RTB from council ABOUT 5 YRS ago and wondered if its worth paying and getting it sorted or requesting they Re-Value it free off charge as its thier mistake ????

hostman · 20 August 2008 at 4:16PM

The valuation will be correct in the present market.

The mid terrace can be advertised at whatever price the owners like, doesn't mean it will sell at that price.

What have similar properties sold for in your area in the last 12 months? Use www.houseprices.co.uk and www.home.co.uk to check.

Also, in a market down turn, certain types of properties become harder to sell / value, flats and ex council houses to name two.

This is the new paradigm. You need to realise the market is in dire condition. Property has been overvalued for a long time, driven up by laxed lending. The banks created the bubble, the same people at said banks are popping the bubble.

_Andy_ · 20 August 2008 at 4:38PM

If you want a full valuation it sounds like this particular mortgage product requires it.
Really though I think you need to be a bit more realistic and accept that it will undoubtedly come in at less than what you anticipate it is worth, given the market at the moment.

emmaBZ · 20 August 2008 at 5:11PM

i knew someone would say im over estimating but no....18 months ago a end terrece next door sold for £187000.( which has shared access to the mid terrece) ...and a semi ( which ours is ) went for £205000...now whilst prices have come down there is no way by £65000 ...also we have never had a valuation from our bank the only valuation we had was from council when we bought house...which the bank accepted....i am 99.9% sure its worth ATLEAST £190000 and thats allowing for recent state of market....

_Andy_ · 20 August 2008 at 5:16PM

That being the case, pay for the valuation but don't take it personally when it comes in at less than what you anticipate.

hostman · 20 August 2008 at 5:22PM

emmaBZ wrote: »

i knew someone would say im over estimating but no....18 months ago a end terrece next door sold for £187000.( which has shared access to the mid terrece) ...and a semi ( which ours is ) went for £205000...now whilst prices have come down there is no way by £65000 ...also we have never had a valuation from our bank the only valuation we had was from council when we bought house...which the bank accepted....i am 99.9% sure its worth ATLEAST £190000 and thats allowing for recent state of market....

18 months ago house prices were booming at an unsustainable 10%+ a year.

Fast forward to today, we're likely to see 15% off this year alone, followed by another 5-10% off in 2009. In some areas and certain types of property, expect to see -50% before this thing bottoms.

Your house is worth what someone is able to borrow. Forgive me, but a council house over £200k? Worlds gone mad.

FraudBuster · 20 August 2008 at 6:20PM

Properties were selling at auction yesterday for below half price.

http://www.housepricecrash.co.uk/forum/index.php?showtopic=84821

neverdespairgirl · 22 August 2008 at 2:52AM

emmaBZ wrote: »

i knew someone would say im over estimating but no....18 months ago a end terrece next door sold for £187000.( which has shared access to the mid terrece) ...and a semi ( which ours is ) went for £205000...now whilst prices have come down there is no way by £65000 ...also we have never had a valuation from our bank the only valuation we had was from council when we bought house...which the bank accepted....i am 99.9% sure its worth ATLEAST £190000 and thats allowing for recent state of market....

That would be only a 6% drop, and it's likely to be a lot more than that.

You shouldn't be suprised if the full valuation comes in considerably below £190k

Toughluck · 22 August 2008 at 10:18AM

emmaBZ

Just from the figures you gave and the arguement you are putting across does sound like a big drop. However, reality needs to step in here. If a professional person is not willing to give you what you want so that you can get a better deal, you know that in the end you are wrong and the property is just not worth what you think. You nor the lender can do anything about it.

I do hope you pay for a survey and get more than £160K so you get your 75% deal, but asking for £17K more in a declining market is like asking the rain to stop falling in the UK during the summer.

dunstonh · 22 August 2008 at 10:28AM

Are the other properties you are comparing it to ex council as well?

beecher · 22 August 2008 at 10:52AM

Is it Halifax's valuation for an existing customer? Don't they use a computerised system to judge LTV? I don't see them agreeing to do a survey for free because of 'their mistake' if it just their software judging how much your property has gone down in price. The difference between the rates Halifax offer isn't that great (0.2% I think) - does it make a huge difference to what you'd pay?