Low house valuation - how do I counter?

Bartlebeans

Hi friends-against-fraud,

The bank has given us a valuation for our house which is lower than we were expecting, and which means we to not fall within the 75% loan-to-value bracket. We think this valuation is unfair, especially as we have had a new bathroom put in, new boiler, new water tanks, roof repair, loft insulation and a new lean-to built along the side of the house.

How do we prove to the bank that our house is worth more than they say it is? Do we need to pay for an independent valuation, or will they insist on their own valuer?

Please advise.

Thanks!

Thrugelmir

Did a surveyor visit your property to conduct the valuation?

Bartlebeans

No - the bank (Halifax) have based their valuation on the house-price index for our area, nothing more.

southantrim3

Sadly, houses have been dropping in value recently, I know that you've had work done to improve it and that is probably still helping your valuation as other houses may have to realisticly sell for even less.
Sadly it's just the market we are in.

antrobus

Bartlebeans wrote: »

How do we prove to the bank that our house is worth more than they say it is?

By selling it for more than they say it's worth. That's the only 'proof' that exists. Everything else is mere opinion.

I've no doubt you could collate some information relating to recent completed sales in your neighbourhood, detail the cost of improvements you've carried out, ask some local estate agents for their valuations, and ask the bank to reconsider.

But ultimately you might have to accept the fact that what you think you could get for the house if you sold it tomorrow, and what the bank thinks it could get if it was obliged to sell the house, might well be two quite different numbers.

Bartlebeans

Thanks. I do recognise that the current market is an issue. But even a valuation of £10K more would help us get a better rate. What I would like to know is what I need to show the bank to prove to them that their valuation is on the low side. Will they take into account a private valuation do you think? Or is there nothing I can do?

Thanks for you help!

kingstreet

Bartlebeans wrote: »

No - the bank (Halifax) have based their valuation on the house-price index for our area, nothing more.

Ask Halifax if they will allow you to pay for a visit from one of their panel surveyors. Explain to them their desktop valuation will not take into account value-adding improvements you have carried out since purchasing the property.

Bartlebeans

antrobus wrote: »

By selling it for more than they say it's worth. That's the only 'proof' that exists. Everything else is mere opinion.

I've no doubt you could collate some information relating to recent completed sales in your neighbourhood, detail the cost of improvements you've carried out, ask some local estate agents for their valuations, and ask the bank to reconsider.

But ultimately you might have to accept the fact that what you think you could get for the house if you sold it tomorrow, and what the bank thinks it could get if it was obliged to sell the house, might well be two quite different numbers.

Thanks antrobus. Mmm, but it's obviously in the bank's interest to make us pay a higher rate. I think I could try the local agents and add the cost of improvements, as you say. I'm not expecting a massive difference, but I do think they have been unfair.

Bartlebeans

Thanks, kingstreet.

southantrim3

Best thing is to check how recent sales in your locality have gone and try to find out what they were worth. I know Estate Agents aren't likely to give out the price the property sold at but they may tell you what the offer prior to offer accepted was.

Bartlebeans

Zoopla gives the house price for my postcode as a whole £70K higher! How can this be?