Low Valuations - Please help!

seanandgill

We are having major problems with surveyors 'downvaluing' property. We have 35k equity in our current home and were the house we were looking to buy had an agreed sale price of 305k, it was marketed at 320k. Our current mortgage deal is 0.5% above base rate for the life of the loan, which is pretty much unbeatable at the moment. Our lender, the A**** agreed after consultation with their underwriters to loan us the 270k we need.

The surveyor has been to the property and valued it at 260k. This is the second property where a surveyor has screwed up our plans with what we feel is a ridiculous valuation.

Is it the estate agents pricing too high, surveyors valuing too low or is something more sinister going on with the mortgage lenders?

Please help because we are doing our nuts in over this!:mad:

Mrs_Bumble

Is it a new build?

Have you checked to see what properties for in the nearby vicinity have actually been selling for, rather than asking price, sites like https://www.zoopla.co.uk have this sort of information taken from the land registry information.

koexelek

seanandgill wrote: »

Is it the estate agents pricing too high, surveyors valuing too low or is something more sinister going on with the mortgage lenders?

I think there might be.

I think the lenders are asking their surveyors to deliberately fudge some valuations, so that the mortgage deal requested falls outside the loan to value needed.

I have had this happen on several occassions recently.

seanandgill

Hi Mrs Bumble

Thanks for replying so quickly.

The property we want is a three bedroom detached with reasonable garden. It is a unique property in the street so comparables within the same street do not really seem fair. The property sold to the current owners in October 07 for 275k and they have completely refurbished the house. No carpet, floor or appliance in the house is more than two years old.

A 3 bed detached property in the next street sold in June 09 for 290k. The same property sold in March 06 for 230k.

janninew

I think there may be something going on with the mortgage lenders too! I was in a similar situation recently, applied for a mortgage with the Woolwich, they valued the house, just before I was due to complete, they wanted to value the house again! The second valuation (6 months later) was for 15,000 less than the first one. I don't believe house prices were dropping that fast. This resulted in my being offered a higher interest rate with the Woolwich as my LTV was less. I now pay around 45.00 per month more and it does annoy me.

I asked my mortgage broker who told me this was getting quite common!

seanandgill

Hi koexelek,

I am glad that I am not being completely paranoid about this...

Is there anything we can do about this. We want to have a meeting with the A**** mortgage advisor (who has appeared to be really helpful all the way through) and his boss. Is this something that might help... At least we might have the chance to shout at somebody.

seanandgill

Hi janninew,

With you on that one, that sounds really unfair.

I just really feel that mortgage advisors should be 'ADVISING' as that is their job. If they know that valuations are coming in low (silly low in some cases) should they not be advising their 'customers' before taking the valuation fees from them!

I assume in your case the 2nd valuation was paid for by the mortgage company?

Mrs_Bumble

The carpet, floor or appliance in the property do not add any value to the property in the eye of the valuer and he would only consider structural improvements to increase value.

Given that the property was bought at the height of the market for £275K then £260K doesn't seem that far off really?

The 3 bed detached did that actually sell for £290K or was that the asking price, if it actually sold for that and it is comparable property then see if there are a couple more like that and ask the Abbey if the valuer will reconsider the value based on those details?

koexelek

seanandgill wrote: »

Hi koexelek,

I am glad that I am not being completely paranoid about this...

Is there anything we can do about this. We want to have a meeting with the A**** mortgage advisor (who has appeared to be really helpful all the way through) and his boss. Is this something that might help... At least we might have the chance to shout at somebody.

All you can really do, is get evidence of at least three similar properties which have recently SOLD in your area.
The valuer might change their mind then... but I tell you know, they are a stubborn bunch who don't like to have their authority questioned:eek:

My pet hate is the surveyor who tells one thing to the client, then something different to the lender. I recently had one where there was a £50k difference :rolleyes:

So, is the surveyor telling the applicant a load of B#llocks to keep them happy while they are with them, or are the lenders downvaluing their own surveyor's valuations when they get them

seanandgill

According to Mouseprice the 'other' house sold for 290k. It does seem a bit harsh to not consider fixtures and fittings, surely if the house was a carpetless, applianceless empty shell it would be worth less... wouldn't it?

Mrs_Bumble

Fixtures and fitting are all about personal taste, the surveyor is looking to see if the bricks and mortar are a suitable security for the lender, when it is a mortgage valuation, and that the lender is likely to recoup the mortgage in the event of repossession.

As koexelek says get some comparables and see if the valuer can bend a little, failing that go back to the vendor and say hey the sale is about to fall through etc, etc