Property Valuation?

johngc

We are currently in the process of re mortgaging our house. It is our first property and we bought it to renovate so have done quite a lot to it (central heating, wireing, double glazing etc) and in our opinion it now looks quite good. We have not done it to make a quick buck but to live in so we didn't scrimp to much on the fixtures and fittings and we used qualified tradesmen for the main bits. There are a few cosmetic bits still to do but it is 99.9% there.

The reason for the re mortgage is to release a bit of equity and repay the loan we took out to cover some of the work. We got the house for £85k and a loan for £20k. I have done all the sums and getting a £99k mortgage will let us pay both off and actually save money in the long term.

When I was doing my sums though I have estimated the property value at £110k. This is based on what "I" think and have seen from Rightmove and estate agents etc but the street we live on has such a wide band of sale prices over the last few years (mainly due to the different sizes of houses. They have all been here a long time and over the years some have had loft coversions etc etc). My neighbour for example has exactly the same size house but with a loft conversion and that went for £119,950 (it was on the market for ages though and I think they probably pushed for a quick sale)

The man from the new mortgage company is coming on Tuesday and I am now starting to worry that the house will be valued at less than I think. If so it could obviously effect our chances of getting the mortgage (the lender will only lend 90%).

My question, then, is how strict are the people that do the survey? Do they know what I have valued it at and is it worth me talking to him about it? Are they also very critical about cosmetic finishes / damage. The guy from the brokers said they normally just do a drive by valuation so the fact that he has made an appointment is worrying me!

danjberry

it will depend on the lender as to what valuation they carry out. some will do a full valuation, some a property risk assessment which is not as detailed as a val but more detailed then a drive by - i dont think the type of valuation is anything to worry about.
The valuer will probably know what you have estimated it as the lender usually tells the company when instructing the survey. you can always have a word with him it wont do any harm. As for your valuation being based on right move and estate agents this could be a bit risky as the surveyor will rarely take this into consideration as they look at properties that have been sold rather then on the market, so if he does down value the property you will need to find comparables of similar properties to change his/her mind.