Revaluation problems

k1tt1kat

I regularly look at this board and am very grateful for all the advice. Please be gentle as I rarely post!

My two year fixed-rate deal ends in July this year. I'd like to move onto a new deal in the 75 % LTV bracket. To do this, I'd need to overpay my mortgage. No problem. However, I rang my lender (would rather not name them as I'm in the middle of a complaint) and they informed me that they have re-valued my house from 120K to £114K. Although I recognize house prices have dropped since I purchased the house in 2010, I feel this valuation is a bit low as my house is in exceptional condition and is in a lovely part of the street. This means instead of only over paying by around 1K to get into the 75 % LTV bracket, I'd have to overpay by around 6K.

I asked my lender if I could pay to have the house revalued. During two phone calls (fingers crossed these were recorded) they said this wouldn't be a problem. However, when it came to filling in the paperwork, they told me I don't fulfill the criteria (a substantial change to the property e.g. extension, loft conversion etc.) for a re-valuation. They couldn't explain to me how they came to the valuation of 114K, except that it was 'index linked'.

Has anyone encountered a similar problem? What did you do?

Any advice much appreciated!

Conrad

Have you got 2 or 3 examples of similar houses in nthe road that have SOLD (fully sold, not just under offer)?

Decor is a difficult one - people often tell me thier place is perfect yet when I see it, I see things like brass hinges, knobs and handles, dado rails, or very shiny metal lights (brushed metal is far more understanted and classy and doesnt jarr) etc all of which would want ripping out as they seem chintzy and twee.

Simon_gloster

k1tt1kat wrote: »

I regularly look at this board and am very grateful for all the advice. Please be gentle as I rarely post!

My two year fixed-rate deal ends in July this year. I'd like to move onto a new deal in the 75 % LTV bracket. To do this, I'd need to overpay my mortgage. No problem. However, I rang my lender (would rather not name them as I'm in the middle of a complaint) and they informed me that they have re-valued my house from 120K to £114K. Although I recognize house prices have dropped since I purchased the house in 2010, I feel this valuation is a bit low as my house is in exceptional condition and is in a lovely part of the street. This means instead of only over paying by around 1K to get into the 75 % LTV bracket, I'd have to overpay by around 6K.

I asked my lender if I could pay to have the house revalued. During two phone calls (fingers crossed these were recorded) they said this wouldn't be a problem. However, when it came to filling in the paperwork, they told me I don't fulfill the criteria (a substantial change to the property e.g. extension, loft conversion etc.) for a re-valuation. They couldn't explain to me how they came to the valuation of 114K, except that it was 'index linked'.

Has anyone encountered a similar problem? What did you do?

Any advice much appreciated!

Hi,

Knowing the lender would be helpful. I can't see anyway that would influence their decision on your complaint so I wouldn't wory if I was you.

Their index linked valuations on most lenders systems can be flawed it has to be said, however they are under no pressure to revalue if it's no necessary. Adding floor area like what they have said is usually acceptable for them to reval at their cost. TLC, new kitchens/bathrooms add no value as they only help resaleability.

If you did say to them I added a XXXX, and you didn't, they will always have valaution reports on their systems which the valuers do check prior to arriving at the property.

The figures you have given are relatively close, whereby if you said it was worth £300K and they said it's worth £175K...then theres ground for pursuing further. As you say it's £114k to them and £120K for you there is little scope for manouvre.

Be warned if they do agree a reval and it comes in lower than £114K, it could tip you into even higher LTV rate bandings. Also as they do it at their cost, there is no ground for appeal. I have known this to happen on many occasions as customers aren't happy but there is sod all they can do apart from remortgage.

Simon_gloster

Conrad wrote: »

Have you got 2 or 3 examples of similar houses in nthe road that have SOLD (fully sold, not just under offer)?

Uhhh....spot on Mr C.

2 comparables would be asked of as well...as Conrad said ideally at least 1 sold within the last 2 months of identical style and construction and at least one of Rightmove or similar currently for sale. Otherwise it's your word against theirs, and you know who's going to win!!!

You could always commission a survey from a valuer that is on their panel as a comparison.

OP, is the complaint around the index linked valuation by the way?

Dave_Ham

Tell Santander to sort themselves out...!

Will push mine to a double of Santander and an interest only mortgage, which is why they are putting the barriers up..

May be off the mark, only other lender I would think would be like this would be Halifax but theyare usually more relaxed about a revaluation..

If you want to pay for a revaluation as confident then armed with some comparables they should allow you your day!

k1tt1kat

Hi all. Thanks for the speedy replies!

Unfortunately, there hasn't even been anything up for sale similar to my house in the last six months, let alone the last two. The area has become increasingly popular due to the development of the nearby University and subsequent rise in student numbers. Housing is in demand.

I realise that any revaluation would be at my own cost and this isn't a problem, but they won't allow one of their surveyors to visit, even if I pay. I offered to appoint an independent surveyor (that they were also happy with) but they wouldn't accept this.

It does seem as though they could potentially revalue my house to whatever they liked, consequentially pushing me into a higher LTV bracket and therefore liable to pay more interest (and increasing their profits). Without understanding exactly how they have valued my house, I can't see a easy way to dispute this.

I've lodged a complaint, although I almost had to give my right arm before they agreed to send it their complaints procedure out to me!

Dave_Ham

You will get nowhere with a complaint, as this is the fundamental process Santander and alike use on their systems and they will not bypass it.

Out of interest, why just not leave and get a better deal elsewhere rather than get wound up and put complaints etc. in

Typically you will get a better rate elsewhere in most circumstances...

Simon_gloster

Dave_Ham wrote: »

Tell Santander to sort themselves out...!


ha ha ha

k1tt1kat

Moving my mortgage elsewhere is an option, but a tricky one. My mortgage is guaranteed (I'm a PhD student and a lot of lenders don't accept this as income) so finding a suitable mortgage is a challenge. If I did stay with my current lender (which isn't Santander), the deal I'm aiming to get is exceptionally good so there is less incentive to move.

It does seem particularly unfair that I can't challenge the valuation or be informed about the process by which they come to it. I am prepared to complain as I think the process is wrong and sometimes you have to stand up for what you think is right, even if you're unlikely to win.

Dave_Ham

k1tt1kat wrote: »

Moving my mortgage elsewhere is an option, but a tricky one. My mortgage is guaranteed (I'm a PhD student and a lot of lenders don't accept this as income) so finding a suitable mortgage is a challenge. If I did stay with my current lender (which isn't Santander), the deal I'm aiming to get is exceptionally good so there is less incentive to move.

It does seem particularly unfair that I can't challenge the valuation or be informed about the process by which they come to it. I am prepared to complain as I think the process is wrong and sometimes you have to stand up for what you think is right, even if you're unlikely to win.

Fair play - good luck with it - be interested to know how you get on...

Simon_gloster

k1tt1kat wrote: »

Moving my mortgage elsewhere is an option, but a tricky one. My mortgage is guaranteed (I'm a PhD student and a lot of lenders don't accept this as income) so finding a suitable mortgage is a challenge. If I did stay with my current lender (which isn't Santander), the deal I'm aiming to get is exceptionally good so there is less incentive to move.

It does seem particularly unfair that I can't challenge the valuation or be informed about the process by which they come to it. I am prepared to complain as I think the process is wrong and sometimes you have to stand up for what you think is right, even if you're unlikely to win.

I think, and I might be wrong, the index linked val is related to your post code along with the house price index. Halifax and nationwide have these as long as you know a certain price paid at a particular time.

As mentioned you can challenge, but like anything in this world you need to prove your arguement.

If you do complain and they give you £50, which they wont, you'll still be with them.

£100 its LBG, C&G, Halifax, BM?

As to your occupation, a lot of lenders entertain burseries, if you get one, so not a lost cause.

Edit by me, if its a policy complaint therebis no reason for you to waste money on a phone call or a stamp as its unlikely you'll win.

As dave said, let us know how you get on.