Crazy valuation survey

discotroy

I just had a valuation survey carried out for a mortgage application through NatWest. The valuation was carried out by Legal & General and rated the house at £0 value.

I, helpfully, got the phone call at 10 minutes to closing on Friday, so I haven't yet had the opportunity to find out the exact details, but the (seemingly rather clueless) person I spoke to said that it was due to there not being any parking within 15-20m of the house and having to cross a foot-bridge in order to get to the house.

They also said that it would be impossible to get insurance for, since it was in an area prone to flooding. While the latter part is true - it has flooded once in the last 50 years - it is definitely possible to get insurance for it, as I have had quotes already.

Does anyone know what these people look for when carrying out the valuation suveys, or is it all done from the office on the back of a fag packet, with a quick look at Google Maps and the average sale price for other houses in the postcode?

I presume I'll be able to see the valuation survey to find out the reasoning, after all, I paid for it...

Has anyone else been in this position? Do I have any come-back?

_Andy_

If the property isn't even being valued as suitable for lending purposes, isn't that sounding alarm bells for you in terms of buying it?

discotroy

I had a full building survey carried out last week and, while I have yet to see the final report, the surveyor didn't express any concerns while conducting it.

I'm really interested to find out how the £0 valuation was reached, and if it did have anything to do with previous values. As the property has been owned by British Waterways since it was built, it has never been sold.

Even the mortgage advisor at the bank said she'd never seen a property valued at £0 in her 15 year career.

As for alarm bells, the house and the other two which comprise the small terrace are currently occupied by tennants and are in a good state of repair. Of course, we accept that it could flood and would take every precaution we can to minimise the pain, but does the risk of flooding warrant a £0 valuation?

opinions4u

Even the mortgage advisor at the bank said she'd never seen a property valued at £0 in her 15 year career.

I have seen several.

Remember, this is a valuation for mortgage purposes. The valuer is saying the property does not provide suitable security for a mortgage.

Any buyer with the cash can take the associated risks. A mortgage lender doesn't have to jump on board though.

I presume I'll be able to see the valuation survey to find out the reasoning, after all, I paid for it...

The valuation is a pre-requisite of getting the mortgage. It is obtained for mortgage purposes and nothing more. While I would expect most lenders to provide you with a copy, I don't believe there is an obligation for them to do so.

Do I have any come-back?

You can ask the lender to ask the valuer to review the content of the report. At the end of the day, the valuer makes comments, the lender interprets these and makes a lending decision based on this.

it is definitely possible to get insurance for it, as I have had quotes already

You have established that it's possible to get quotes for insurance. If you fail to disclose the content of the valuation report to an insurer and subsequently take out a policy it could render that policy void.