ING Direct - desktop valuation for remortgages...

BigDY

Hi all,

Has anyone got any experience of how ING Direct do their valuations for remortgages? I see from their info pack that they use a desktop valuation service for remortgaging clients, to assess the "likely" value of the property when compared to recent sales in a specific area...

My issue is this:

My flat is worth (in my opinion) £165k, or there abouts. I base this on having kept an eye on the local market over the last year or so, and also on a very similar (size, location, layout) flat that has just come onto the market.

However, my block of flats is quite old and the only flats that have sold recently have been sold at low prices because they've been in very poor internal condition, and have required lots if work doing to them. This is how I bought my flat, and have spent a lot of time, money and effort renovating it - it's now in excellent condition, and should be valued at the top of the market rather than nearer the bottom...

Yesterday I used the Hometrack website to obtain a valuation, as I believe this is the primary source of "desktop valuations" for many mortgage companies... because of the 'distorted' historical selling prices for my block, they only value my flat at £148k.

Has anyone any experience in getting mortgage companies, in particular ING, to be flexible with their valuation based on my specific situation (for example)... or are they likely to say "sorry, computer says £148,000", and stick to that?

To qualify for the 75% LTV for the amount I'm looking to remortgage for, my flat needs to be valued at a minimum of £156k.

Any helpful advice gratefully received!

Danny.

Conrad

Desktops normally follow about the mean - to bottom range. Your condition is of no relevance to a lender becuase in the event of repossession the bitter owner often wrecks the place and removes the wires, rads, doors, even windows.

Blocks of flats are also liable to downward pressure where future owners let them out as tenants statistically take less pride and care of communal areas.

ING are a big faceless call centre lender. If you want more personal service you might be best trying your small local BS (which I'd guess will have lower long term rates than ING anyway as BS are non profit making SO HAVE NO SHAREHOLDERS TAKING A DIP IN THE TILL).

BigDY

Thanks Conrad - I appreciate your advice.

Surely though, there is a difference in the value of a property based on the condition it's in when it's valued...? Remortgage valuers can't value every property as if it's been trashed with all the fixture and fittings ripped out?? That's effectively what the desktop valuation is doing to my property - basing it solely on the "sold" prices of other flats in this condition. Incidently - there have been some flats in my block in good condition that have sold for closer to the £170k mark a few years ago - it's just that when the average price is worked out for all flats, that the price drops to £148k.

Is there any flexibility allowed in these desktop valuations, do you (or anybody) know? If they do "under-value" my property, is there anything I can do about it, or have I effectively lost my non-refundable booking fee?

By the way, I've chosen ING as they seem to be one of the better short term fix deals on the market at the moment. It was (is) a toss up between them and Britannia, but the ING deal goes onto a lower SVR at the end of the fixed period.

My wife and I are expecting our first child in 3 months, so would like the security of a fixed rate - it's quite possible that we'll be looking to move to somewhere a bit bigger in 2 years, so don't really want any penalties beyond this period. If anyone is able to suggest a better product that ING or Britannia, then I'm all ears....?

We're looking to borrow £117,000 on a property I think is worth £165,000, (but could be as low as £148,000). Our combined salary is £52k, although my wife will be taking time off after our child is born, so we've been basing everything on my salary of £33,500. We both have perfect credit histories.

Thanks,
Danny.