Valuation for re-mortgage

1399steve

Just had valuation for my first re-mortgage from HSBC (existing lender) and its dropped by £13k in not quite 3 years!

I bought for £145k in summer 2008 and the desk valuation came back as £132k. Can't quite understand how its so low when the only 2 houses sold on our street in the last 2 years went for £140k and £143k last summer. Mines an end terrace too and others are mid-terrace!

I know its just tough luck but gutted as I've been making maximum overpayments and saving a lump sum to pay off to hopefully get to 80% LTV but even with the lump sum, I'm around 86%.

Oh well, back to the drawing board I suppose!

CloudCuckooLand

On average, according to Land Registry, England and Wales is 8% down from summer 2008 prices...which would make it £133k.

Your specific region may have done better than that and its a "conservative" valuation.
Or your specific region may have done worse and its a generous valuation.

Being a "desk valuation", they cannot take account of it being end-terrace. The may also have taken the region/county/town stats, rather than down to street level, to give a better range of examples.


[IMG]http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/default.asp?g=1&gt=1&a=E&W-ALL&s=01 June 2008&e=01 February 2011&t=1[/IMG]

1399steve

Fair point, I suppose I was just expecting/ hoping for somewhere around £138k-£140k based on most recent sold prices.

I have the option to pay for a valuation 'in person' if I want but will probably just keep saving and hope rates don't go up in the meantime!

Thrugelmir

1399steve wrote: »

Oh well, back to the drawing board I suppose!

Keep on overpaying and saving. You will get there and it will be worth the effort in the years to come.

Crashandburn

You done much to the property? If so, this could be a reason to have a physical valuation undertaken if you are bucking the regional trend

1399steve

I've done a fair bit, decorated every single room and replastered probably 75% of it - when we bought 2 of the 3 bedrooms were virtually shells!

While there's no doubt in my mind that the work done makes the place much more saleable and would almost certainly achieve a higher sale price, its debatable whether a surveyor would decide we have "added value"