Mortgage Valuation Appeal

moneysavingmatt

Having done a search through all the threads I understand everyone feels there property is undervalued however I was looking for some advice in our case.

We just came to the end of our current mortgage deal ,we are on a high rate (5.79% SVR) and are looking to change provider as with a new baby we are trying to save as much cash as we can.. Found a great deal with Yorkshire BS and had the deal agreed in principle pending valuation..

All going well so far.. We modestly estimated the house to be worth £105,000 (mouseprices.com valued at £110,000) we bought four years ago for £92,500 but have installed A rated Gas Central Heating (prior was a wonkey white meter storage system) and new windows / kitchen.

Two houses have sold in the last two years.. exact same builds in our street sold for £120k and £125k respectively..

Surveyor came out on Friday whilst I was at work.. measured a couple of rooms asked how old the GCH system was and left.. he valued it at £95,000 meaning we miss the threshold for our re-mortgage rate by 2%. (LTV of 87%)

I've lodged an appeal with Mortgage company who have passed it to surveyors .. I gave them the particulars of the houses and land registry sales of both houses in the street..

Is there any hope of them overturning or do I have to accept the valuation and leave myself stuck paying this high rate?

I really felt I did my research on our house price.

Dave_the_Ginger_Cat

How recent were the two sales in your road, and what county do you live in?

moneysavingmatt

March 2011 and March 2010..

Edinburgh, Scotland.

shortchanged_2

You do realise that when you bought was pretty much peak prices, so it is doubtful even with the money you have spent on your house it is going to be worth £12,000 more than what you paid for it. Not what you want to hear I know but it's reality I'm afraid.

moneysavingmatt

shortchanged wrote: »

You do realise that when you bought was pretty much peak prices, so it is doubtful even with the money you have spent on your house it is going to be worth £12,000 more than what you paid for it. Not what you want to hear I know but it's reality I'm afraid.

I bought in 07 and according to figures it did climb after we bought it.. All I can go on is the price paid and similar houses in my area and what they sold for in theory I only need the valuation to come in at 98.5k to be able to be accepted.. I don't think Im too out of line in my valuation.. its a 3 bedroom house in a good area..

shortchanged_2

But the thing is moneysavingmatt is you stated that you modestly valued it £105,000 which is £12,500 more than you paid for it. Chances are the improvements you spent on the property was not this much and you are expecting more in a falling market, that is unless you are living in Aberdeen.

_Andy_

Unlikely they will overturn it - the comparables aren't recent enough and the 95k seem realistic given the value when you bought it.

moneysavingmatt

Appreciate the replies people the one thing I still dont get is how an indentical house in march this year could have sold for £120k.. would the person have to have overpaid??

Senior_Paper_Monitor

I assume you are sure that was actually the paid price (land registry source) not the selling price ?

moneysavingmatt

I got the figures from ros.gov.uk, those would be the actual sale prices right?

Senior_Paper_Monitor

yes - sorry forgot you were in Scotland