URGENT please! Re: remortgaging and property valuation query-please can anyone advise

Lullo

Hi,:hello:

We are in the process of (hopefully) remortgaging our own residential property, which was last remortgaged 2 years ago, when we moved our mortgage to the Woolwich , who instructed a Valuer to "value" our property. They did NOT come and inspect our house, though - they just did it via the internet apparently., and valued our property at £375,000.

As above, we are now in the process of applying to the Woolwich, to release "equity", by way of a "further advance". However, this time, after signing the application for a "further advance", the Woolwich have advised that have instructed their Valuer's, who have been in touch with us, to arrange an appointment for later this week, for the Valuer to call around and inspect our property.

We are rather concerned however, that even though it was valued just 2 years ago, for re-mortgaging purposes, they will - given the present state of the property market - "under-value" our property, which will result in our not being able to obtain the full amount of the "further advance" which we require.

We have tried asking the firm of Valuers, how they calculate the value of the property. i.e. is it somewhere ABOVE the "rebuilding" cost for insurance purposes, but LOWER than the actual Selling price? (if that makes sense). We have checked with our Insurers, who have advised that our current Building Sum Insured is approx. £246,000.

So surely, when valuing our property, the Valuer MUST take regard of this Building Sum Insured - plus ALSO the actual value of the plot of land winthin which our detached house is built. The "value" of the land alone (approx. one third of an acre" will be worth approx. £150,000.

So does anyone PLEASE know just how "remortgage" valuations work? i.e. how do the valuers "calculate" the value. Should it AT LEAST be the Building Insurance value?

Many thanks for reading - will be really grateful for any ideas, please.
Kind Regards
Lullo

geoffky

How can they undervalue your house? it will be valued for todays market and depending on where you live it will be -20% off your price 2 years ago unless you have gone and done major work on it..

luckyfool

It bears absolutely zero relation to the insurance rebuild value. Its based on what a valuer thinks it would sell for right now in todays market. He or she would base that on comparable sales data locally for similar properties, and the internal and external condition of your house.

Dan_1976

The rebuild can and I have seen it higher than the value, although rare!

Look at sold prices in the area, not for sale, sold! It will give you an idea. You have to accept that it is 2009 and a different market than 2 years ago. I would sit tight and see what they say.

dunstonh

given the present state of the property market - "under-value" our property

It wont under value. It will give a value based on current market prices and probably based on the basis of a quick sale.

We have tried asking the firm of Valuers, how they calculate the value of the property. i.e. is it somewhere ABOVE the "rebuilding" cost for insurance purposes, but LOWER than the actual Selling price? (if that makes sense). We have checked with our Insurers, who have advised that our current Building Sum Insured is approx. £246,000.

Rebuild has nothing to do with it. Its desirability, location, style of house, features, comparison with recent sales and how the market is trending.

So surely, when valuing our property, the Valuer MUST take regard of this Building Sum Insured

So, if I go out take out a building sum insured that is £500k higher than my realistic house price, do you think the lender will lot me borrow £400k more?

SouthCoast

Please let us know what figure the valuer puts on your property.

maryotuam

Can you cope without remortgaging? It is not a good time to try and release equity as houses are worth less now than 2 years ago due to the housing bubble bursting.

chivers1977

They will use comparables to come to a valuation ie other properties that have sold within the local area within the last few months. If it is downvalued from your expectations, this is the only way that you will be able to challenge the valuation

Lullo

Hi again - many thanks for all the replies.

Well, the Valuer has been this morning, and actually (or appeared so) seemed quite helpful.

We will now have to wait until about next Tuesday before the woolwich inform us of what the valuation came out at.

Thanks again
kind regards
Lullo

kikovuk

Hi, can you please let us know what happend with valuation. We are in a similar situation. We had today the guy from Barclays/Woolwich and i want to know what to expect.
We have had the mortgage approved but i have a feeling that they will say that it is below the 30% deposit and they will change the interest rate to the higher option.
Was the valuation any close to what you hoped for or was it close to what mouseprice website quotes?
Thanks