Lenders Valuation - Dispute

Cortinaa_GTR

I bought my flat in 2007 and I have just had it valued for a remortgage. It has been valued 25% below what it was valued at when I bought it which even in the current climate seems extremely severe. It is jeopardising me getting the remortgage now and I am genuinely stunned by this. I obviously expected a reduction having bought at top of the market but certainly not by this much.

Can I request a second opinion /valuation etc or is it simply bad timing and I have to just get on with it?

Cheers.

Yorkie1

I've not heard many stories on here of people successfully challenging valuation figures ...

You need to check what similar flats in your development / area have sold for. Try nethouseprice.com or zoopla or mouseprice (I think).

bluebird

Your flat is ony worth what someone is prepared to pay for it.who valued it? and yes you can get several more opinions of value.Prices have fallen but you also mention you bought at the top of the market a mistake you may now be paying for.goodluck.

Cortinaa_GTR

I understand it's only worth what someone will pay for it but I don't want anybody to pay for it because I'm only trying to remortgage. The LTV affects this though and for it to be 25% below what it was valued at 5 years ago is horrendous. I feel like I've been humped twice. The lender has deployed a surveyor on their panel but before asking them directly I thought I'd try and seek some advice first. I cautiously factored a 13% price reduction in the application not expecting the same again.

zappahey

You need to go on to the land registry website and look at the averages for your area. In some parts of the country flats have been absolutely hammered and may have dropped by much more than the headline average.

You might as well look at zoopla and check out what has sold locally and see how they compare to yours.

brit1234

Parnott wrote: »

I understand it's only worth what someone will pay for it but I don't want anybody to pay for it because I'm only trying to remortgage.

Many people are in the same position. You bought at the peak of the market, when prices were extremely inflated, lending incredibly irresponsible. Prices have fallen a lot in most areas and set to continue falling. The bank has to protect itself, its shareholders and some case tax payers money. Either put in more equity and move lender or stay where you are on the svr. You will probably be still on a far cheaper rate than in 2007 at the cost to savers like me.

Catherine_Johnson_2

Parnott wrote: »

I............

Can I request a second opinion /valuation etc or is it simply bad timing and I have to just get on with it?

Cheers.

The latter.

Sorry, but it's not your valuation that counts. Obviously, it's the lenders.

Cortinaa_GTR

Having done a bit of digging as per the posts above I have now discovered the following. The flat above me had their home report completed 10 months ago and was valued 20% higher than mine. The flat above me across one sold for 25% higher than my valuation 13 months ago. I'm quite prepared to accept a drop but it doesn't seem proportional to me. A 20% difference in 10 months is extremely severe is it not? (I appreciate I am biased though)

james_toney

flats have fallen more in value than houses, i think you should be pleased with only 25% TBH , i know of friends in manchester who's flats have fallen 30 -40% and going to continue to fall more this year, sorry for bad news, i can understand your frustration

james_toney

Parnott wrote: »

Having done a bit of digging as per the posts above I have now discovered the following. The flat above me had their home report completed 10 months ago and was valued 20% higher than mine. The flat above me across one sold for 25% higher than my valuation 13 months ago. I'm quite prepared to accept a drop but it doesn't seem proportional to me. A 20% difference in 10 months is extremely severe is it not? (I appreciate I am biased though)

obviously i dotn know where in the uk you are, but now you have researched it, does not sound as bad, regaurding my previous post, i would get another value , good luck with it, maybe you are looking at a 10-15% drop :T

Catblue

Was your flat a new-build when you bought it? Did you purchase it through any sort of scheme in which the developer "paid" part of your deposit, or did you get any cashback or anything?

These sort of schemes exist in order to trick people into paying top dollar for something that is just not good value.

Or have loads of new flats been built around your area recently? Oversupply always means that prices drop.

However, if this is not the case then I'd certainly be questioning the lender's valuation given the two other comparables that you mentioned. 25% does seem a lot.