A+L Valuation

cupidstunt

Just got our valuation back and I'm a wee bit confused. Valuation itself is £198,000, however, insurance recommendation for rebuild is £258,000. Shouldn't these figures be the other way round?

cupidstunt

opinions4u wrote: »

Why?

The cost of rebuilding a house from scratch can be more, or less, than the actual market value.

It also costs more to rebuild a single property than to build one property as part of, say, 40 in a new development where economies of scale are well and truly at work.

Its not part of a development and house is two months old. Just wondering why the figures are so far apart.

keith1950

Hi, surely the rebuild valuation will always be higher than the house price valuation. Depending on the extent of any major damage the remains of the house would have to be demolished and the site cleared before restarting any rebuild. As the house would be situated between others that demolision would have to be carried out much more carefully than if it was an isolated house, with care being taken not to damage any utilities serving the house.

joolley

keith1950 wrote: »

Hi, surely the rebuild valuation will always be higher than the house price valuation.

Not in my experience, but my experience is limited. Certainly, the only times I've seen such a difference is for listed buildings etc.

But then, I've only ever mortgaged 5 houses, 1 listed, so limited experience. And the market is different I suppose, so who knows.

joolley

cupidstunt

keith1950 wrote: »

Hi, surely the rebuild valuation will always be higher than the house price valuation. Depending on the extent of any major damage the remains of the house would have to be demolished and the site cleared before restarting any rebuild. As the house would be situated between others that demolision would have to be carried out much more carefully than if it was an isolated house, with care being taken not to damage any utilities serving the house.

I take your point but this wouldn't cost 60K. Anyhow, house is by itself situated in 0.7 acre of land, with no access issues. The last house I bought (4 yrs ago) valuation for mortgage was £157K, and insurance recommendation was £105. Gathered that the £52K difference was the developers profit margin.

Just can't fathom out why it would cost £258K to rebuild this house but valuation is £60K less yes £60K.
Maybe I'm just sceptical, but I smell a rat in that the A+L is messing with the LTV to get me onto a higher interest product !!!

dimbo61

I bought a modern house in 1985 for £22,000 and a few weeks later my mate at work also bought a house for £22,000.
The rebuilding costs for mine were about £18,000 and nearly £60,000 for his WHY
Mine was a modern 2 bed semi and his was an old 3 storey teraced with houses on both sides.
Whats important is how much you pay for the building and contents insurance.
So use quidco! and moneysupermarket/go compare to get the best deal for you