remortgage less than market value?

funfunder

We moved lenders after a non viewing valuation.

meantatz

the remortgages were for extra lending, the independant valuation tho seems to be nearer to the market price than the lenders valuation, surely they must protect themselves as said before?

holly_hobby

funfunder wrote: »

We moved lenders after a non viewing valuation.

Thats quite possible but only on a remortgage - and usually only if the previous survey was done within 6 yrs of the remortgage app - and they already have good comparibles of the area. (and/or a low LTV) . Indeed this happened in my own case of moving mge lender.

Its called a "drive by" or visual. And used by lenders to both free up the surveyor for purchase surveys and to speed up the remg process as a whole.

The surveryor/valuer who performs the drive by, may at that point decide to peform an inspection, if for example the value note on the application seems disproportionate to both his comparibles and what he is able to visually assess (ie he would be looking to see what internal improvements had been made, to take its value beyond the mean for the area).

So although people may think "our house was not surveyed when we remortgaged" - it would have been visually assesed as a drive by, its just that they weren't aware it had taken place.

No new mge will be effected without some kind of assessment by the lender - be it a standard inspection or drive by.

Hope this helps

Holly

kingstreet

meantatz wrote: »

the remortgages were for extra lending

Same lender or different lender?

A remortgage is a move from one lender to another and will require a valuation by a surveyor. Extra borrowing or product transfer with existing lender will more than likely be a desktop.

Without knowing which one you're talking about it'll be impossible for us to get the comments right.

funfunder

Our valuation made no sense to us, the broker or even the bank. The local bank manager is our neighbour.! You couldn't do a drive by for our house as it can't be seen from the road! As I have said before it's made no difference to as we have a lot of equity and only need a small mortgage. We have moved from one high street bank to another. We were chatting to our other neighbours earlier they have just put their house on the market. They have priced it for a quick sale. And had an offer for £80,000 more than our valuation! Also they have a smaller plot than us! This so called drive by valuation make no sense at all!

holly_hobby

May have been a desktop then, based on the low LTV, decent and recent comparibiles for the area & property type etc, and a previous survey conducted in the accepted time frame i.e within last 6 yrs. (although the surveyor may well have sat os your house in his car unnoticed by you, or whilst you happened to be elsewhere).

Drive by/Visual or Desktop - is an industry term - and in reality just means whichever method they used, the surveyor hasn't actually personally attended and assessed the property as in the completion of a traditional survey.

You can be sure that some sort of property assessment & value assessment would have been completed.

Any non-attended valuation assessment is a commercial decison made by the lender under particular criteria.

Holly

funfunder

I would love to know how it was worked out. We haven't had a survey done in 15 years. Also h
It must have been a desktop because you cant see our house with coming into the grounds. As the gate is locked he couldn't have even seen a wall! Even the likes of zopola give the 60 grand more. I feel for others who could loose a mortgage because of this. X

holly_hobby

Well from what you say it must have been a desktop, I would guess the low LTV, comparibles & other aspects relating to the property influenced the lenders decision to proceed this way.

A property being down valued on a non-attended valuation (particular to remortgages only), may be challenged by the applicant, in their requesting for an attended survey, and/or also providing recent comparibiles in support of their estimated value of their property (of course there is no gte that this will alter the surveyors opinion).

As if applying or changing your mge lender isn't stressful enough !!!

Holly