Re-mortgage Valuation

N1ck

Advice required

I am in the middle of a re-mortgage with the Alliance & Leicester. The surveyor came round a few weeks ago and valued my property at 70k below the value I had applied for. My value was based on the estimates of 5 estate agents and a property for sale of a similar size 200 meters from my property

I have since found out that 3 properties on the next street to mine all with similar size properties have sold for the asking price I have submitted, one for 10K and one for 25K more then the value I submitted.

I have written a letter of complaint to A&L and I am waiting their reply. Does anyone know if they are legally allowed to undervalue a property and if they do is there a regulatory body I can complain to?

many thanks
Nick

ToMonkey

You'll get the answer the valuation is final, they coventry did this to me a few weeks ago.

They sent someone to do a valuation who valued my 4 bed for 130 the people that did the valuation have got a 2 bed on the corner of the street up for 154.

They offered no explanation except the valuation is final.

N1ck

Not great news. I just wondered as three properties have sold for the value I submitted or higher in the last 6 weeks, surely they would have to act by the market value!?

lazysaver_2

This is so frustrating but you can see why they are doing it. They are probably valuing at 10-15% less to cover themselves as the market is still falling, but £70k seems outrageous.

Does make me laugh that estate agents/valuers are reporting improvements in the market but then come out with valuations like these!

As said above - their decision is final.

BTW, does your council tax get reduced as well?! Thought not :rolleyes:

pinkpinkfizz

I'm in a very similar situation and I'm gutted!

Using a broker we decided to go with the Coventry for our remortgage and picked a product/term that suited us. Our application was based on our own valuation (would of expected our broker to advise us if we were wrong/changes in the way things are done) however the "drive by" valuation, which cost us £199 upfront, payable to the Coventry has come up £35,000 less. so that product is no longer suited to us. :mad: If we had known that this was a possibility that this would happen we would of looked more closely.

We are £199 down, and back to square one and terrifed the same thing will happen again. We simply can't afford to lose any more money

Should the borker not have given us better advice?

I have no idea what we do now.

koexelek

pinkpinkfizz wrote: »

I'm in a very similar situation and I'm gutted!

Using a broker we decided to go with the Coventry for our remortgage and picked a product/term that suited us. Our application was based on our own valuation (would of expected our broker to advise us if we were wrong/changes in the way things are done) however the "drive by" valuation, which cost us £199 upfront, payable to the Coventry has come up £35,000 less. so that product is no longer suited to us. :mad: If we had known that this was a possibility that this would happen we would of looked more closely.

We are £199 down, and back to square one and terrifed the same thing will happen again. We simply can't afford to lose any more money

Should the borker not have given us better advice?

I have no idea what we do now.

I always advise all my clients that any valuation fee is a gamble, and you could lose your money if the surveyor doesn't like the property in question.
This applies to both purchases and remortgages

happybroker

pinkpinkfizz wrote: »

I'm in a very similar situation and I'm gutted!

Using a broker we decided to go with the Coventry for our remortgage and picked a product/term that suited us. Our application was based on our own valuation (would of expected our broker to advise us if we were wrong/changes in the way things are done) however the "drive by" valuation, which cost us £199 upfront, payable to the Coventry has come up £35,000 less. so that product is no longer suited to us. :mad: If we had known that this was a possibility that this would happen we would of looked more closely.

We are £199 down, and back to square one and terrifed the same thing will happen again. We simply can't afford to lose any more money

Should the borker not have given us better advice?

I have no idea what we do now.

with the best will in the world the broker will take what you tell them in good faith regarding the value of the property. Certainly there are website that can help but this is a problem that is rife and affects brokers, clients, estate agents.....the list goes on.

I've just had one client see the valuation come in at £110k less than the only similar property in his area sold for 3 months ago (35% lower) and again, no one at the surveyors office or the bank will entertain a discussion over it.

pinkpinkfizz

Thanks for your replies.

I know nothing about mortgages etc so please be kind, I wondered about this..

On the product Key facts document the £199 fee is listed as a booking fee and the amount set as Valuation is FREE

If we're not going ahead with them, then surely there is nothing to book and we can get our £199 back?!

I know I'm cluching at straws and my money is gone....

N1ck

If properties have sold in the area (within a few hundred meters) I don't understand how they can value a great deal lower.

SaveMeTheMoney

Bought our house two years ago and deal has now ended and we are looking for a new deal. Had our house valued and surveyor says it is worth £100k less than when we bought it! We had estimated that it had lost 55-60k, based on what houses selling for, but nothing we can do now. Feel sick at the thought of having 'lost' so much money. No idea what to do as regards remortgaging now.

pinkpinkfizz

Seems like there are a lot of people in the same boat. I know if our broker had told us there was a risk to our £199 that we wouldn't have gone for that product. plain and simple.

Hind sight is a wonderful thing!