Valuation nightmare!!!

sdooley

Robert, it's a difficult situation and one more and more people are going to find themselves in. Longer fixed rates may be a good idea not just for interest rate risk but also because there may not be deals available at the end of short deals.

Surveyors are human and will try to set a value that is helpful - which is why most buyers will find it comes out at what they offered for the house, unless they didn't bargain hard enough. With £220,000 though I think you were being greedy - even you admit you didn't expect that to go through - this will have pushed the surveyor the other way as it seems completely out of sync with both your purchase price and the neighbour's sale price.

If you do go to other lenders, might suggest you put your estimate of the value of the property at what you need it to be (say perhaps £185K), the valuer may match it - valuation is an art not a science.

Sonofa

sdooley wrote: »

valuation is an art not a science.

Black art at best

Conrad

Well I'm currently looking for a B2L, in Europes fasting expanding town (not City) and will only pay about 70% of last years price. There is masses of choice and few buyers, so in reality all of our homes are only worth what the market is prepared to pay.

Of course lenders are valueing at the likely sum to be achieved in a 'forced sale basis', as that is the likely figure the lender will recover following repossession.

I have been offered a few repos, and for sure myself and it would appear all other buyers simply wont offer more than 70% of last years price - why would I.

Incidentaly for anyone interested I can achieve a ney yield after all costs of 9 - 11% renting as a secure professional HMO (yes there is such a thing, and no voids aren't a concern)

herbsmithherbsmith

In some London boroughs the average house price has gone up to about 10 or more times average income in recent years.
This bubble has been pricked and the air is rapidly escaping.
For example, I know of a flat that was sold in south London for £39,000 in 1995 but which was resold this year for £200,000.
Inflation has increased by about 1.5 times since then so the price in 1995 terms would be about £60,000.

I think there's going to be a lot of negative equity.

bigbloke45

Kez100 wrote: »

So, what's the difference between a value of a house for re-mortgaging and a value for selling? Apart from the fact the former is an attempt at guessing the latter they are one and the same thing.

The difference is the value a lender will estimate for a remortgage and be prepared to lend against.

The valuation you get when you want to sell your property is a guess at what you put it on the market for. What you actually get depends upon what someone is willing to pay for it.

So they are NOT one and the same thing at all; the first is a benchmark against what you Can borrow, the second is a "punt" to see if you can get any potential buyers to have a look at your property.

This is the world of commerce!

shell1000

if you are concerned about the valuation level and have issues with the exterior/interior condition, pay extra for an internal inspection like i did.

Cost me more but was piece of mind. Also be more flexible with the loan to ratio deal you want. I'm not sure it will help in your case but i was borderline 75 ltv and had a survey done to find i was 76.67 (my house had returned to its 2006 value) and couldnt get the 75 ltv deal i wanted. So went with first direct on the 80 ltv.

This is a commonly re-occuring question so I just thought I would explain what I did. Hopefully mine should be completing very soon

chivers1977

The only way that you will get a valuation challenge agreed is to provide details of three similar properties that have sold in the immediate area within the last three months. If you cannot provide this, your valuation challenge will not be successful and you will need to chose an alternative, more expensive product. There will be no other way to amend the valuation returned.

neverdespairgirl

robertg wrote: »

An identical house just 8 doors up sold a few months ago for £215k but the valuer seems to have ignored that.

A few months ago - a lot has changed since then!

Why did you value yours @ £5k more than the identical house sold for a few months ago? May have shot yourself in the foot, there.

stevetodd

robertg wrote: »

I wouldn't have said we were in a property hotspot and perhaps £220k was a little optimistic in the current climate but it's certainly not worth £165k either. Based simply on other properties in the area sold recently I would have said £200k was about right.

An identical house just 8 doors up sold a few months ago for £215k but the valuer seems to have ignored that.

We had a similar problem with our valuer, we bought a blt, no problem with the price valuation but he came up with a ridicleous rental valuation of £800/month. I spoke to the valuer and explained that on the day he surveyed the house it was already rented out at £1,000/month. I might as well have tried to discuss it with my dog. The building society witheld £65,000 (luckily I had that spare in a savings account, otherwise the deal would have fallen through) because we fell foul of the rent to loan ratio calculation. Anyway after buying it we rented it out at £1,150/month (he was only out by 44%) we had a choice of 4-5 interested potential tenants.

TighterThanTwoCoatsOfPain

stevetodd wrote: »

.... we bought a blt....

Hmmmmmm love them... plenty of mayo, now your talkin!