Believing the Broker

Raksha

Way back on October, we contacted an independent broker recommended by a friend to help us find a company prepared to help us remortgage after our bank (HSBC) said no.

The first company he approached (Coventry) also said no, then Cheltenham & Gloucester said no because of the LTV (houses like ours go for £230,000 to £260,000, so we had put £240,000 on our application, but they have valued it at £140,000, because they don't take into account the decorative condition etc.) When we bought it 10 years ago, it was valued at £123,000. We paid a £99 application fee.

the Broker said not to worry, because C & G had a couple of other products aimed at high LTV at a higher interest rate so we agreed to go for one of those. This was 3 weeks ago. We've received the lawyers pack etc.

I chased things last Tuesday and was told that our offer was in the post.

Now the Broker tells me that there was no offer, there never was..........

herbiesjp

£100k difference in valuation is massive.

Have you got any evidence of sold prices for similar properties in the immediate area?

What mortgage amount were you looking for?

_Andy_

Who told you the offer was in the post? the broker or the lender?
What is your broker's response to this?

Raksha

The broker told us the offer was in the post after he'd spoken to C & G last Tuesday. We got a letter from C & G on Thursday referring to some documents they'd requested which hadn't been supplied by the Broker for a 65% LVT, so we assumed this letter had crossed with an offer on the higher % LTV. The broker says he's just piggy in the middle, and I can appreciate that.

Conrad

You said 'houses like ours go for £240000' - so all you have to do is prove it. Get the full address's of houses like yours that have COMPLETED recently.

The surveyor will have a reason for down valueing to £140k - perhaps there are manymlike yours for sale that stick on the market, and some repos that go for £140k?
Surveyors do take into account the general decorative presentation as this impacts overall saleability.

Raksha

Sorry - my mistake, shows what a state I was in - the valuation was £170K not £140, but it's still way below what similar houses in the area are going for. Proving it is difficult, because it's only one of 6 similar in the road - the rest are all either ex council houses with no drive/garage, 1930's bay windowed semis, 3 bed bungalows, or Edwardian Terrace/semis. We were the last ones to purchase one of the 6 like ours, and that was 10 years ago... The road is busier than some of the roads around, so I can understand it being less expensive than a similar house in a cul de sac, but Zoopla suggests a value of £194K

HappyMJ

What does Zoopla suggest for all the other similar properties in the area? Zoopla isn't accurate but taking an average of all the properties that are the same should give you a more accurate figure. To be really accurate you'll need to look further away than your own street then adjust a bit for local issues or benefits. I'm assuming you purchased your property in a state of disrepair and have put some money into the property to bring it up to standard. Zoopla won't recognize this.

Senior_Paper_Monitor

Starting point for consideration of an appeal would be a copy of the initial report or at least the comparables used in that report (assuming C&G will release it) and compare with a full Hometrack (about the only automated source the lenders will consider - Zoopla isn't accepted) report and its comparables, then also source socio-economic databases such as Cameo and/or Censation and Housing indexes such as Land Registry.

I would expect your broker to undertake any such battle for you (we certainly would - but let me warn you that I have presented a couple of what I thought were 'dead cert' appeals recently and been turned down out of hand ... frankly, the lenders are under no pressure to lend or to consider any variation of their decisions).

Incidentally, was yours an automated, drive by or inspection valuation ?

Raksha

Thanks Senior Paper Monitor.

The broker has offered to appeal for us - my OH has sent him examples of similar houses for sale in the area (I appreciate this is not the same as what a house may be valued at - but he felt he had to *do* something)

Our valuation was based on inspection, but just doesn't seem to have taken into account the full UPVC double glazing, UPVc full width conservatory (itself 10' x 20'), 2 brand new garden sheds, a full garage size workshop in addition to full sized garage, plus a block paved patio, £5K hot tub and gazebo. Inside, we've refitted the kitchen, added a utility room and downstairs WC, and refitted the bathroom. The front has a fully block paved drive with parking for 4 cars. - We don't know of any property in the area with this extent of facilities.

In your opinion, would it be worth spending the £19.95 for the Hometrack report?

It's our home, and not presented ready to 'sell'

herbiesjp

You need details of SOLD properties, not properties for sale.

Raksha

Raksha wrote: »

The broker has offered to appeal for us - my OH has sent him examples of similar houses for sale in the area (I appreciate this is not the same as what a house may be valued at - but he felt he had to *do* something)

I am aware of the difference between sold properties and EA valuation, but there isn't a high turnover of houses in our area. Only one house has sold in the entire street in the last 2 years, and that was a Edwardian Semi which needed a lot of work, and sold for £160K in June this year.