Valuation lower than expected

quixonte

Hi All,

I'm currently looking at a re-mortgage deals, everything seemed to be going fine as my mortgage advisor had said with the expected value of my property I would have had an LTV of 69%. The valuation report has come back and its putting me at an LTV of 80%. We where looking at an offer from the abbey of 5.74% on the 75% LTV. I accept that at the end of the day the value is the value - though I would argue that its worth more as recent sales have been closer to my expected value of 268k rather than the 240k from the current valuation.

When I spoke to my current provider they said according to the halifax valuation index the property value would be 268k. I've never come across the halifax valuation index is it mumbo jumbo that my current lender (skipton) are using or is it something that lenders actually look at ? Now to my question..... I was wondering that if I went to the halifax would they use that 268k value or is that unlikely to happen ? I'm a little weary of doing lots of credit checks on my account, but I guess a second shouldn't be too bad.

Any advice appreciated.....(i do like a good rant)

Thanks,
Q

theGrinch

a valuation is nothing more than an adjusted matter of opinion. what some people are finding at the moment is that two valuers can be 30% different in their assessment of a property's value.

This doesnt help when some valuers instantly knock 10% off the market value.

You need to remember that the valuer is instructed by the lender and will get a lot of business from the lender. They have no reason, if in doubt, to take any chances on a valuation.

Turning to you substantive question. Recently there has been a rise in these desk top valuations - as the quantity and quality of databases improves. In fact, two years ago the halifax did my remortgage without sending in a valuer, however my previous lender was also from the HBOS group.

Maybe you could ask the Halifax or an experienced broker if they will send in a valuer. As your current lender is the skipton, they may send a valuer in.

If they do, then its down to you not to be passive, but to influence the valuation to what you consider is the true market value. You can hand the valuer all the evidence of recent SOLD prices. If you can get written current valuations from local agents then that would help.

feisty1

is it mumbo jumbo quote

no is the easy answer

if u want free valuation u will just have to accept what they say..with BOS if u challenge valuation u must submit 3 comparables of properties in yr immediate area

if u appoint yr own valuer u will have to pay & may get the same result

they are all (quite rightly) erring on the side of caution

quixonte

Thank you both for your comments.

theGrinch, puts it well that it is someones opinion.

I'm quite happy with challenging the valuation as I think it is inaccurate and I've already given my mortgage advisor a list of half a dozen properties from nethouseprices with the details of neighbouring properties. Hopefully, he can convince them. I will instruct him to try halifax as well - no harm in trying. Otherwise I may plump to stay with skipton as the rate they are offering is not far off abbeys and has a lower product fee.