Poor Mortgage Valuation

Sparky24

Can anyone help - back in December I moved house to the house of dreams. There was stiff competition to puchase, based on much larger than average plot size, and location right on the edge of an estate overlooking green fields, good school catchment etc etc etc.
The house was on market for £315k, and we had to offer £314k to purchase. Unfortunately the mortgage valuation came back at only £295K which meant that even with savings we had to go 95% LTV to purchase.

The owners, estate agents and everyone we spoke to could not believe this low valuation - which was based on two smaller properties in poor locations in the estate, and one some 5 miles away!
We have now done the house up, modernised the batchroom, added a conservatory and converted the garage into a office / living space.

Can anyone advise what the above changes may have added to value, and if other lenders would take this into account in any revalue of the property for remortgage purposes? Are remortgage valuations a paper exercise or does someone take work etc into account. Local comparisons are now up at the £310k mark but our lender will not revalue for us in an attempt to gt better 80% or even 75% LTV mortage offers. Is it worth paying £4-500 and getting our own valuation?

Please help.

dunstonh

Can anyone advise what the above changes may have added to value

Estate agents are typically over pricing properties by up to 20%. So, buying at 0.3% below estate agent price is possibly part of the problem.

Is it worth paying £4-500 and getting our own valuation?

Depends on how confident you are that the value will come in higher and if the lender will accept that or not. Some will accept a more detailed survey and valuation that you arrange. Its always best to check with them first.

hoggums

Buying only 1K below asking in Dec08 was absolute madness. The estate agent saw you coming. Unfortunately the bank are under no obligation to accept your re-evaluation and I think it's a waste of money.

Perhaps you could approach another lender?

happybroker

you are probably tied in on your 95% mortgage also so would have to factor the cost of coming out of your existing rate into the equation and I would be surprised if the numbers make sense at the end of the day.

The agent is bound to be unhappy at the valuation and the vendor would be as they would work on what the agent had said.

From a "mental wellbeing" perspective you have the house of your dreams and obviously felt it was worth what you paid for it or you wouldn't have bought it. Whilst you may have paid over the odds and had to take a mortgage at a higher rate to do so if you are happy and can afford the place then keep smiling.

Sparky24

happybroker wrote: »

you are probably tied in on your 95% mortgage

Thanks for your help. We are not tied into the 95% product - is a standard variable rate. We are happy with the pruchase price as previously the house had sold in 1 day after coming on market in December, for this to fall through. We were the first to view ahead of 8 others - one of who we knew was going to offer asking price - so had to be near to that.

Similar properties without land / location had sold for £310k so thought ours should have been more.