Mortgage valuation

James187

Hi

When my wife and I bought our first house almost 2 years ago, we had a 10% deposit, borrowed 80% off the bank and 10% off my parents. We'd now like to pay my parents back by asking the bank to add the money to our mortgage to take it c.90% LTV based on purchase price (less 2 years repayments).

However, I'm concerned how the bank will value our house. We negotiated a 7% discount at the time of purchase and since totally redecorated throughout, fitted a new kitchen and landscaped front and back gardens. According to Zoopla, the house is worth slightly more now than when we bought it but unfortunately, due to where we live being a popular location, there have been no recent house sales to be able to benchmark our house against.

Will the bank request a professional valuation or simply work from generic housing market statistics for our general area? Am I better having the house valued by a local estate before I speak to the bank?

Any assistance would be greatly appreciated as it'd be lovely to be able to repay my parents' kind help quicker than they anticipated.

Thanks!

opinions4u

Will the bank request a professional valuation or simply work from generic housing market statistics for our general area? Am I better having the house valued by a local estate before I speak to the bank?

They will probably use some form of indexation first and, if this doesn't give them the number required to lend you the money, offer you the option of paying for a professional valuation.

A professional valuation will not necessarily give you the numbers that you want and you could end up with no additional advance, despite paying the fee.

totally redecorated throughout, fitted a new kitchen and landscaped front and back gardens.

Don't expect them to have added to value an amount anywhere near their cost.