Re- mortgage valuations

Welshlassie

We have just had the valuation result for our remortgage. It is £20,000 lower than we valued thehouse at and means that unless we can find £11,000 to reduce the balance of the mortgage to bring it under the 75% LTV we can't take the mortgage.

I am amazed that the value is so much lower than we had it at and can't work out how they have come up with this figure. Houses on the market in the area are being marketed above what we valued the house at and one sold across the road in January around what we valued it at.

Is there anything we can do (without paying for our own valuation) to make them see sense, and can someone explain what the difference is between a mortgage valuation and an estate valuationif any?

Many thanks

Cannon_Fodder

Valuations that properties go on the market for, are what the buyer/Estate Agent want to achieve in an ideal world.

The fact that those properties remain on the market, is an indication that the valuation is incorrect, not being supported by the active local market.

Recently, asking prices on Rightmove were being missed by 9%, on average, by the time it got to selling price.

Lender-tied valuers do seem to be protecting their clients a touch excessively, but as they might get sued if they fail to do so, that is pretty understandable.

While some re-valuations have been successful, this is by no means certain. As you have indicated an unwillingness to put your own money behind your beliefs, by getting a fresh valuation, why should the lenders put their position in jeopardy?

Welshlassie

Thank you for your comments. I know we can get our own valuation, but would they actually go with it if we did. I've done alot of research this evening and still believe we have been under valued by at least £10,000. Houses are selling around us for the asking price or very close to it in the last month or so (which means there is very little information to back this up presently on the land registry). I intend to challenge the valuation (and may go as far as getting a second valuation completed), but wondered if anyone had any advice on how to challenge (and if we stood any chance of succeeding).

Many thanks.

Welshlassie

Is anyone able to help regarding the chance of suceeding?

Jamsterthehamster

Hi
same position here too.
i have been told to stay on the svr, until november one the re-valuations are done.
this was through C&G - not sure how reliable this is.
hopefully prices will have risen again (sorry ftb) and the shortfall should be less

fingers crossed