Mortg. valuation report: insurance/electrics

MushyPeas

Hiya

On attempt three (eek!) about buying a property as a FTB and the mortgage valuation report has just come back. I have two queries I am hoping you lovely people can help with:

- the insurance says they would value the house for £52000, but the market value is £122000. Why is there such a large differece?

- specific remarks are that 'the electric circuits would not confirm to current standards and should be upgraded'

There has been work carried out in the flat; refitted kitchen, bathroom, new spotlights in ceilings. Am I right in thinking these should come with a certificate? I asked the estate agent to ask the vendor; the building work was carried out by a builder and they have receipts, but the electrics just look like 'old fuses' which I would have to sort out myself. I've gone back and said I won't proceed unless I know the electrics meet current standards. Do you think I've done the right thing?

Thanks in anticipation!

MPx

silvercar

the insurance says they would value the house for £52000, but the market value is £122000. Why is there such a large differece?

Sounds like the rebuild cost for insurance purposes rather than the market value.

molerat

MushyPeas wrote:

Hiya

- the insurance says they would value the house for £52000, but the market value is £122000. Why is there such a large differece?

- specific remarks are that 'the electric circuits would not confirm to current standards and should be upgraded'

There has been work carried out in the flat; refitted kitchen, bathroom, new spotlights in ceilings. Am I right in thinking these should come with a certificate? I won't proceed unless I know the electrics meet current standards. Do you think I've done the right thing?

The insurance value is the cost to rebuild. Why the big difference .... because stupid people pay stupid prices for houses, but that is the subject for another discussion. :rolleyes: (not a personal attack btw)

When was the electrical work done, if earlier than the last couple of years it wouldn't have needed a certificate. Any house older than about 5 years will not meet current regs as the regs are constantly changing. If you want a house that meets current regs best you buy a brand new or completely refurbished and rewired one. The quote on the survey is now standard and really means "if the house burns down due to an electrical fault it's nothing to do with me".:p dont you just love surveyors.

Have you done the right thing, only you can know that.

MushyPeas

Hi silvercar and molerat. Thanks for your advice. I was worried about the electric situation as my mum's neighbour just had to shell out thousands to get her electrics up to date. But I guess if it's a small 2 bedroom flat it wouldn't cost too much...

I feel a bit better now

Doozergirl

The work carried out on the kitchen and bathroom, do not require certificates.

Most houses won't meet 'current standards' because building regulations are constantly updated. It would therefore be unfair to ask the vendors to meet this requirement. What would be fair is to to ensure that they sell you the house with 'safe' electrics.

Call in an electrician and see what needs doing. They can draw you up a safety report. You'll need a new fuse box by the sound of it but it may be that the wiring itself is okay. Arm yourself with the full details before you go in for the kill!

molerat

MushyPeas wrote:

Hi silvercar and molerat. my mum's neighbour just had to shell out thousands to get her electrics up to date.I feel a bit better now

She didn't have to get the electrics up to date but was probably told she needed to by a salesman masquerading as an electrician. Rewiring is the new double glazing. :mad:

MushyPeas

Doozergirl wrote:

Most houses won't meet 'current standards' because building regulations are constantly updated. It would therefore be unfair to ask the vendors to meet this requirement. What would be fair is to to ensure that they sell you the house with 'safe' electrics.

Thanks doozergirl, wish I had come on and asked advice here before talking to my mum! She said I should demand that everything is up to 'current standards', sometimes a girl shouldn't listen to her mum

lynzpower

incidentally my parents have just had some electric work done, they had a new fuse box- all the wiring was sound tho, just needed a new box and it cost£300 - they didnt shop about much either.

Get a quote it might not be as much as you tihnk