What is an audit valuation?

littlened

We've applied for a mortgage and been told that the lender will perform an audit valuation..what's one of those?

Robert_Sterling_3

Have you ask the lender?

littlened

Still waiting to hear from them

luckyfool

The lender instructs a second "audit" valuation by their own firm of valuers to double check the initial figure. This is normally done at the lenders expense and they will normally run with the lower of the two valuation figures. It's typically done on bigger mortgages or by specialist lenders and is done to minimise the risk of an incorrect or fraudulent valuation causing the lender to lose money.

Robert_Sterling_3

Thank you for that clear explanation. :T :T :T

littlened

luckyfool wrote: »

The lender instructs a second "audit" valuation by their own firm of valuers to double check the initial figure. This is normally done at the lenders expense and they will normally run with the lower of the two valuation figures. It's typically done on bigger mortgages or by specialist lenders and is done to minimise the risk of an incorrect or fraudulent valuation causing the lender to lose money.

Thanks for that.

I wonder if it has anything to do with the fact we're paying £82,500 for a 4 bed house with two bathrooms and a garage, they probably think there's something seriously wrong with it, but there's not.

although, the boiler has been stolen since the last valuation, but we've had the price knocked down by 2.5k to compensate for this

Diseydi

Its great to find out that other people are asking about audit valuations - I am buying a house of from a family who have had a mortgage offer (apparently) from a specialist lender (Beacon Home Loans) for the house that they are buying. However on the day that we were due to exchange their lenders solicitors issued a questionnaire to be answered following an audit valuation. Does anyone know how long this process should take and do I need to worry ie: could their mortgage offer be retracted?

Carla0909

Hi,

I have just received a mortgage offer from Beacon Home Loans with the clause regarding the audit valuation, can you just confirm that everything went ok for you?

luckyfool

With Beacon it can be random on about 1 in 10, or where the comparable sales cited by the valuer are outwith tolerances. i.e. They cant find comparable properties selling within 10% of the valuation within the last 3 months locally. This is common just now due to the state of the property market.

Carla0909

Have you dealt with Beacon much? They were totally new to me till I started looking for a mortgage. Been in touch with Beacon today, they don't seem to think there should be a problem, though just a pain as I live in Scotland and I need to get my missives concluded!!!!! Do you know how long they usually take to have the audit valuation carried out? Good to hear that this isn't just me and it really is because of the state of the market. Anyway just wanted to thank you for your help.

luckyfool

Instructed within a 3 or 4 days, should happen within a couple days of that, and another 48 hrs to get back to them. Subject to access to the property of course.