House valuation

moneybags82

Hope i'm posting this in the right place, apologies if i'm not.

I went to see our mortgage advisor today as we currently live in a shared ownership property and we were looking into buying the remaining share. She told us as a rough guide they use the RPI index and our house value has therefore dropped.

Before I consider the option of purchasing the remaining share any further I was just wondering if anyone could give me an idea of how much a valuation would cost. I want to get one carried out myself initially to see if it's going to be worthwhile. She also said there are often disputes between the housing association valuation and the one carried out by the bank.

any idea of the cost of a survey would be much appreciated.

Thanks!

opinions4u

You could get an estate agent to value it for free.

Tell them you're considering selling it. Stress that you want two prices from him - the price to market at and the price you expect it to sell for in a poor market.

Then make arrangements with the lender - which will involve paying their fee.

How much do you owe?

What's your current share?

At a guess, how much do you think it's worth?

moneybags82

we own 75% of it at the moment and bought it 4 years ago and we only put down a small deposit. bank thinks we may be in negative equity but only by about £500 based on their workings.

There's nothing for sale in my area and nothing sold in the last couple of years. Absolutely no idea about the value of our house. Was a ne build when we bought it in 2007, if i'd known they drop in value as soon as you move in I would have probably opted to buy a 'second hand' house as such.

Bank have said it's probably best to leave the other share with the Housing Association and they will take their share of the loss when we decide to sell. Think this could prove difficult and they'd refuse offers to minimise their loss.

Not in a rush to move, just thought it would make it easier for us to move eventually if we owned the house outright.

brit1234

moneybags82 wrote: »

Bank have said it's probably best to leave the other share with the Housing Association and they will take their share of the loss when we decide to sell.

That's good advice. If you buy more shares you increase your loses if house prices continue to fall which I believe they will.

I believe it is easier to sell with less shares as well.

opinions4u

moneybags82 wrote: »

we own 75% of it at the moment and bought it 4 years ago and we only put down a small deposit. bank thinks we may be in negative equity but only by about £500 based on their workings.

So it's not unrealistic that the figures are something like:

Bought for £100,000
Your share £75,000
You borrowed £71,250

Current value £90,000
Value of your share £67,500
Current debt £68,000

Maximum lender will let you have (90% of value): £13,000 (£90k x 90% minus £68k)
Amount you need to buy share: £22,500 (25% of £90k)

So without £9,500 in savings (£22.5k minus £13k) plus enough for valuation and legal fees this isn't going to be easy to achieve.

moneybags82

about right opinions4u.

Thinking we may as well just pay anything we can towards the mortgage rather than attempt to buy an additional share. Just frustrating when they keep putting the rent up for the share we don't own. The mortgage based on the rough valuation from the bank would mean we would only have to pay half the amount we pay in rent if it was a mortgage.