Lender Valuation

mlawton40

Hi,

We are in the process of buying (first time). The lender arranged the valuation with their contracted surveyor and the surveyor has given them a value the same as the agreed price (which is good news).

I know that valuations can come in under the agreed price but I just wondered if the surveyor would ever give the lender a valuation above the agreed price? or if they think it's real value is 10k more than the agreed price they would still put down the agreed price as the valuation?

Wh05apk

I have only ever seen a valuation above asking price once, however I suspect that was a mistake somewhere!

kingstreet

A surveyor will not normally put a higher value on a property than what has been agreed as a purchase price. I've had one or two cases over the years, but they were never for more than a £1k or £2k difference.

For mortgage purposes it makes no difference anyway. Your maximum loan to value is a percentage of purchase price or valuation, whichever is the LOWER.

GMS

Valuers are given the figure by the lender, either the purchase price or estimated valuation for a remortgage. They will then decide if the figure is correct or not.

No real reason for a valuer to go higher than the figure given as this could open up issues in the future should the property be repossessed and sold for less.

As has been said above, I have only ever seen 1 or 2 come back higher.