Remortgage valuation advice needed

D3516N3R

Hi! My wife and I bought a house last march that was derelict (Unoccupied for 11 months, boarded up, in need of a total overhaul). We bought it for £280,000 as part of a sealed bids process and thanks to the market got it for a very good price.

We've spent around £110,000 renovating and extending it to a really beautiful top spec house. Now we're remortgaging we're looking to consolidate all our expenses under one mortgage, and felt we had added enough value to jump from a 15% deposit to 25% and get a better deal.

We asked some estate agents round and it was valued at £500,000 which was nice to hear. We thought it was a bit rich though and figured it would probably be worth more like £450,000.

We've applied through Lloyds and all was going well, until the valuation came in at £395,000. We contested this showing like properties in the area that have sold at our target value and including the valuation from the estate agents.

The valuer hasn't changed their valuation. It is a very odd situation as it was the same valuer who defended her original valuation, rather than an independent process.

We've now been told we can either pay for a seperate valuation (Around £500), but even if we do that they will still only refer it back to the original valuer. Or we can take what we can with the low valuation and keep some of our debt in personal loans.

I suppose our other option is to go to another lender as we haven't spent anything with Lloyds yet, but this process has taken 6 weeks already and we're starting to want to get it sorted.

Has anyone got any advice on what we might do, or similar situations where they've found a way to get a valuation moved?

Thanks,
Dom

GMS

Estate Agent and mortgage valuations are often way different, although £100,000 is a big gap.

Why did you apply to Lloyds? If their rate is great then you may want to pay for another valuation. If not then look across the market and see what another lender will do. Danger is another lender may use the very same valuer as Lloyds.

Ultimately a valuer needs to be prepared to stand up in court and justify their valuation if required so getting them to move from the original can be almost impossible. Providing them with a second valuation from another surveyor may not be enough to get them to change it.

Have you provided receipts for the works carried out?

Thrugelmir

Who is your current mortgage with?

D3516N3R

We're currently with Britannia. we bought under the Share to Buy broker scheme which got us a discount on their SVR and unlimited overpayments so no problem moving away from them. Their advertised rates don't seem to be very good at all at the moment...

We went with Lloyds as I bank there and their 2 year fix at 3.09% seemed a good option, albeit with a whopping £1500 fee.

Thanks,
Dom

Wh05apk

If you have appealed a valuation without success, then your only other option would be another lender offering a free valuation, although as GMS says you may actually get the same valuer again.

kingstreet

Does Lloyds use C&G staff valuers these days, or does it panel valuations to independents?

If it was a staff valuer, you've a good chance of it being a different surveyor if you do try another lender.

Thrugelmir

Wh05apk wrote: »

If you have appealed a valuation without success, then your only other option would be another lender offering a free valuation, although as GMS says you may actually get the same valuer again.

Though the instructions given by the lender to the valuer may differ.