Valuation worries

CanaryYellow

As far as I was aware, valuations for mortgage purposes are always the lower of surveyors valuation and agreed sales price.

Batchy

dont worry about it... i was also worried, but it turned out to be wasted energy in the end!, it come back fine.

CanaryYellow

Batchy wrote: »

dont worry about it... i was also worried, but it turned out to be wasted energy in the end!, it come back fine.

Exactly the same for me. I was particularly worried as I was buying from a developer which heightened the risk of valuation issues, and it was an e.surv valuation, but no problem at all.

I think the valuation problems of this time last year have gone away to a degree, there's definitely less nervousness amongst lenders.

Eric1

lellow_lorry wrote: »

A surveyors is cautious not to overvalue, and it is worth what you are paying for it. Any more is speculative to someone else prepared to pay more for it.

Exactly.
The OP is borrowing 85% = 45900. The lender is confident it will sell for that if repossessed. So, why delay the deal by valuing at less than 54000?
Even if the "true price" is say 53000, nobody will care, except the OP

Henry_P_Chester

You were right to be worried. Many mortgage companies will value much lower than any estate agent especially in a Market as uncertain as this.

http://www.ybs.co.uk/mortgages/current_products/property_valuations.html

Important information regarding property valuations
Please be aware that in the current housing market property prices are falling in many areas of the country. This is likely to affect the value of your property when you come to apply for a mortgage, and potentially your choice of mortgage product.

We obtain a mortgage valuation (or property assessment figure) for all house purchase and remortgage applications, in order to calculate the proportion of your loan compared to the value of your property (this is known as the Loan to Value or LTV) and the suitability of the property as security for a mortgage. As such, the mortgage valuation will not necessarily reflect the value an estate agent feels someone would be prepared to pay for the property

This could result in your property being valued at less than you told us and may also mean that you no longer qualify for a product with a specific LTV. If this happens you will have to switch to another product with a higher LTV, or it may mean that we are unable to offer you a mortgage.

If we are unable to offer you a mortgage after your mortgage valuation, any product application or valuation fees would not be refunded, so it is essential you are as accurate as possible when providing us with an estimated value of your property.

There are various websites that provide estimates of current property valuations and house prices and we would encourage you to look at these prior to telling us your valuation of the property. This will help to ensure the figure that you provide to us is as accurate as possible and increase the chance that the product that you select on application is the one that you will be able to proceed with following the application.

sonastin

The report shouldn't really say "this property is valued at ..." More accurate definition of the number would be "we think it is worth paying ... for this property"