Valuation when remortgaging

SGE1

kingstreet wrote: »

When you complete the application form for the new mortgage, it will ask you for estimated value of property. It is normal for the surveyor to consider what you've written in the light of the comparable evidence of other sales and to agree with it, if it appears reasonable.

He will look at the condition of the property and see how it compares with the comparables. A good surveyor will put some time into establishing how the conditions compared from property to property as well as the price.

Thanks. Reassuring. For a while I was wondering whether the surveyor would even bother to come inside the house.

Thrugelmir

SGE1 wrote: »

Indeed. SVR is lower than the fix at the moment, but obviously that might change.

How important is the monthly outgoing to you? That's the key decision of whether to fix or not. As interest rates move up and down without prior warning.

If your SVR is low, then overpay the mortgage. Best way of saving money is to owe less. Rather than second guess interest rate movements.

You reckon to have added £25k by spending £15k that was my observation.

I wasn't commenting on your spend on the property either. Merely that houses require constant maintenance to remain as in new condition. Double glazed windows only have a limited life span.

Also tastes vary so a purchaser may wish to personalise the property differently.


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dimbo61

What you need to do is read the mortgage paperwork carefully and find out what the mortgage reverts to at the end of the fix ? now if this is 2% above base you wont find a remortgage deal cheaper elsewhere and with a LTV above 85%
Its a very tough housing market so surveyors and lenders are being very cautious at the moment so yes its great to have a new kitchen and bathroom but dont think that will add value.
Its the same with a rewire ! If it needs doing well it costs £3000/£5000 but does it add value ?
Some people love period features and some people hate them.
If you can overpay every penny you will be saving when your mortgage rate drops

SGE1

Thanks. I'm not so worried about the 'to fix or not to fix' question - we can deal with that nearer the time when rates will probably have shifted, or be about to shift (and the only way is up). Personally I'm willing to pay a bit of a premium for a fix, if only for the peace of mind that comes with knowing how much your mortgage will be for the next 2 or 3 years. But we can cross that bridge when we come to it.

I'm just aware that the alternative rates that will be able will obviously depend on the LTV - hence I was more wondering about the methods used for valuation in the event of needing to remortgage (but I'll obviously consider all the above first).

I appreciate everyone's comments about adding value - I understand that there's some scepticism, but please just take my word for it - we have added value! When the kitchen and bathroom have exposed pipes, rotten flooring, cabinets that dates back to the 80s, and lime green walls, it's pretty easy to add value but sticking a new kitchen in, new flooring, and painting the whole thing white. Re-wiring same - there were only about 4 1960s lights in the house when we moved in. Identical houses with a more modern neutral decor are selling for about £40k more than what we paid for ours, so that speaks for itself really.

And I appreciate the comment about period features - sure not eveyone likes them, but given that the house is a period property, the target market is people that like period properties (and period features). I think it's pretty universally acknowledged that restored sashes, original wood floor etc will add more value that plastic windows etc.