Low property valuation

caevans

Hi apologies upfront as I am so clueless about mortgages!
We bought a new build for 180k 2 years ago after bartering down from the 200k list price. We have just received a letter from our mortgage company as our mortgage rates are due to change next month. It says that the value of our home is 165k! I don't think this is the case as the builders are still selling our style house for 200k. Am really concerned by this and should we get an independent person to value property? do we need to do anything?
Sorry for thickness, I did warn you!!!

ACG

Are you looking at selling? If not then there isnt too much to worry about.
It is possible that the value of the house is lower than the new builds as someone would rather buy a brand new house 10 doors away than they would a 2 year old house - everything in the new build is brand new and not 2 years old.

New build properties drop in price as soon as someone has bought them. they then build up over time (or thats the idea anyway).

caevans

Thanks. Yeah looking to sell next year. Would the value really have dropped that much though? Just checked and original sell price was 212k and can see that a few neighbours paid that :-o

PasturesNew

Also, with a new build, you probably got a lot of stuff included in that price that aren't really the value of the house. e.g. people often get white goods included, or garden turfed, or floors/carpets laid...

Hellybob

The mortgage companies just go from their system which could be wildy out.

I bought a 2 year olf house in 2007 for £149k and it was valued at this by Britannia. I've come to remortgage and their system says it was only worth £118k. I decided to pay their £65 to have a valuer come around who has valued it at £140k for the mortgage (which was more than I needed) and said it would probably fetch more if put on the market.

Bear in mind I did get a good deal on the house when I bought it at two years old.

caevans

Thanks that's reassuring. Will call tonight and see what they say. If they are just predicting a %drop would that mean that my neighbours house bought for 212k be worth more as its a percentage drop on the sale price? Thanks