How to find out value of house before re-mortgaging?

clairehi

Hi all,


what happens if I apply for a remortgage deal which has a max LTV (say 75%), pay for a valuation and discover it does not meet the LTV criteria? DO we forfeit the valuation and/or product fee?

we bought our house less than 3 years ago but I have no idea how much it is worth now as there are no direct comparables (and v few houses selling!). Based on house purchase price (Apr 06) LTV is now 72%.

Baz_2

Well you need to be as honest as you can be with yourself with regards to the value.

Try to find similar sized houses that are up for sale now. Then knock off 10 - 20% of that. Then use the landregistry sale prices of similar sized houses over the last month. www.nethouseprices.co.uk and www.ourproperty.co.uk are good for that.

The you can use the houseprice indexes from nationwide and the halifax just google nationwide house price index and the similar for the halifax. You just pop in your purchase price and date and it estimates the value. But as that works on quarters you need to deduct another 5% from those.

Also www.zoopla.co.uk is good too.

Some lenders will refund you on a adverse valuation. Just check first, I know HSBC will refund.

It depends on whether the lender are looking for positives to back up you valuation or are looking for negatives to discredit it. Its quite easy to find both. As your so close to 75% I wouldn'r gamble the fees with any lender that wouldn't refund it.

koexelek

In this market, best to go for a remortgage deal that includes a free valuation, if you are unsure about your property value.

A lot of properties seem to get valued at 76% and 61% loan to value by the surveyor ( instrucred by the lender) these days :rolleyes:

JayZed

Claire, in addition to Zoopla, you might try the Nationwide HPI calculator (www.nationwide.co.uk/hpi) and the Halifax equivalent (http://www.hbosplc.com/economy/housepricecalculator.asp). None of these is going to be particularly accurate as they don't take into account the specifics of your own property, neighbourhood etc, but should give you some guidelines.

If you apply for a loan on the assumption of a LTV under 75% and then the lender values it at less, the lender will almost certainly offer you its deal for the relevant LTV instead (which won't be as good). If you choose not to take this, then whether you get the valuation fee back probably depends on the lender, but I wouldn't count on it.

choccybuttons

Hi

We brought our house 2006 went for new mortgage 75%ltv to discover the bank only valued it with 92%ltv, as they are very strict. Look around your area for house the same as yours which is selling for the least amount of money and that will give you some idea. Beware of free valuations with lenders as some are only free if you get the mortgage approved. On the estate where we live all house virt same, some are asking 140k others 110k, ours was valued at 115k by the lender.