House Valuation

GAZB

I bought a repossession 2 years ago for £107k , it was only in need of a bit of cosmetic work , painting / decorating etc , the house was built about 30 years old , its a large 3 bed detached property with large extension on the side , front garden , rear garden an has an extremely large garage at the back of the house ( would fit about 8 cars in it ) , it was up for sale about 5 years ago for £175,000

a few semi detached houses on the same road as mine which are probably only half the size of my house with no garage or extension etc are up for sale at £100k

The problem is I have a mortgage on it for £99k and im looking to pull £12,500 out of it for a deposit on a buy to let property that Im looking to get , last year it only got valued at £125,00 by the mortgage company and I feel its worth alot more than this probably around £150k looking at the market

at the mortgages Valuation of £125k it wont allow me to remortgage for the extra £12,500

Is there anything I can do to get the correct valuation as I think the mortgage company are looking at what I paid for it repossesed and not really what it is worth

CloudCuckooLand

You cannot have your cake and eat it..!

Past sales shift the averages. You benefitted from a bargain, but dragged down the local sales figures.

Would you have prefered to pay more up front, keep the local sales average up and then be able to re-mortgage ok?

If it was only cosmetics, why would it be £68k off? £34k off for the 2008-ish price crash/repo, maybe, but the other £34k just for cosmetics?

More likely £175k was overpriced at the tipping point of the market. Perhaps it should really have been around £160k, for example.

If you have done the work needed, how close to £160k you can get will depend upon your locality and its recovery (or otherwise) compared to the market averages.

Other sales nearby may help. If nothing has sold recently you could go out and overpay for something - to offset your bargain - for a surveyor to spot...

Jenniefour

Think about this one very carefully - clearly you are in an area where prices have gone down considerably and, therefore, will probably still be going down. So why would you want to purchase another property in a falling market and take an instant hit? You seem to have done well on the price you paid for your repo - enjoy it. And beware of falling into the mindset that property prices only go up - they don't and the evidence is staring you in the face. Save your buy to let aspirations for a later tine - such as when you have clear evidence that the market has bottomed out - which may not happen for many years to come.

Raksha

Valuations seem to be a long way out on what Estate Agents are asking for. In our area 3 and 4 beds are regularly going for £215K, but our valuer says ours is only worth £175K.

We are remortgaging, and have been offered a slightly different deal instead - with a higher rate for 2 years (we were looking for a mortgage of £142 K)

Thrugelmir

As you bought for £107k and still have a mortgage for £99k some 2 years later. You don't seem to have repaid much capital off the mortgage. Are you on an interest only mortgage?

GAZB

Yes it was interest only but Ive recently swapped the mortgage over to repayment , the other house im looking to buy is also a repo and is at bargain price at £48k , ive got a friend who's looking to rent a place like this and is willing to pay me £500 a month so thats why im pushing to get it