Buy to let valuation how does it work help please?

desperate-dan_5

Hi

Posting on behalf of my parents who are just in the process of buying their first buy to let property. Mum with me now.

The question is when the vlauer comes out from mortgage company does it work the same as normal vlauation or do thy lookat what rent the property will bring?

This house is an old building that is being refurbished and the building company have put their own valuation on it, hoping the valaution form nationwide will come out as the same. Someone has advised that it works differently and thy sometimes down value when it's a buy to let rather than residential for some reason.

Does anyone know how this works and if its true?


Thanks

jimjames

I don't but interested to hear. On holiday at the moemnt and my valuation is likely to be sitting on door mat when I return.

Ican't see any reason why the valuer would change the value of a property purely on BTL but all the other numbers need to stackup like the LTV and rent % over mortgage.

kingstreet

Surveyors are expected to confirm the monthly rental income the property will generate when they value it for BTL purposes.

Thrugelmir

jimjames wrote: »

Ican't see any reason why the valuer would change the value of a property purely on BTL but all the other numbers need to stackup like the LTV and rent % over mortgage.

The potential rent could influence the property value.

Commercial property lending is based on rental yield to determine value. Something which lenders may use to determine whether lending on a particular property is viable.

More so in these uncertain times where the low volume of property transactions gives a false market picture.

bris

In my experiance they value it like any other house, but they also give a rental valuation on what to expect for the property in the area. Most lenders are looking for 125%. This is the most important part and will determine the deposit required.