Lenders Valuation - Dispute

Cortinaa_GTR

No it's a 100 hundred year old house that has been split into 4 properties. I'm ground floor and the flat above me only has 3 rooms (bedroom, bathroom & kitchen/living room together) where as mine has 5 rooms so I'm staggered mine is coming so low. My only option if I can't resolve this is overpay to reduce the capital improving my LTV position toa point where the remortgage will be approved. Easier said than done though.

Thrugelmir

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.

The lenders not looking to buy it, only value it only the basis of a sale within a reasonable timeframe.

dimbo61

As you are now looking at a remortgage I am guessing that you had a 5 year fix?
What does the mortgage revert to at the end of the fix?
Is it the SVR or some form of tracker deal ?
Hope you are paying less when you go onto the SVR/Tracker ! and if so then overpay every penny you can to build up your equity and reduce your mortgage debt

Cortinaa_GTR

I was IO forthe first two years, then on the SVR for the last 3. During my time on the SVR I have OP to reduce my balance my 25% which I was fairly chuffed with. My current provider is now jacking up the SVR by 1.5% in June, so I preumed I'd have enough equity to remortgage. To now find the value has diminished to the same extent as I OP is a pretty tough pill to swallow when I consider the info about neighbouring flats above. So I'm effectively still stuck with a 100% mortgage. I'm a bit grumpy about this!! :-I

dimbo61

All you can do is carry on overpaying ( well done so far)
Every penny overpaid is now saving you 4.49% TAX FREE.
So unless you have got to move stick with it.
If you managed to overpay 25% over the last 3/5 years you will soon have 15/20% equity when you next need to remortgage

dimbo61

The mortgage lender cant take away your mortgage, but they can increase the rate :-(
As you have found out yourself what the flats in your block are selling for is more than the very conserative valuation you have been given so there is equity when you need to sell ( hopefully)

myhouse_2

The valuation doesn't simply represent what the place is worth now - it also reflects the lender's view that their is a high chance that prices will drop further. It is therefore prudent for them to lower their risk by undervaluing your property.

Cortinaa_GTR

A quick update, thanks for input so far.

I spoke with mortgage advisor who challenged valuation for me. Surveyors came back stating all my evidence although correct couldn't be considered because the other valuation and sales were outwith the last 3 months. So original valuation stands and I had to make another substantial OP to meet the minimum 95% LTV criteria. Remortgage now approved so just trying to move forward but still a wee bit p*ssed off but I could def be in a worse position.