Mortgage Loan to Value question

kingstreet

Holly - I'd like to qualify your points a little, if I may.

Typically, on a product transfer (not moving to a new lender) a desktop valuation is automatically done. It is only at the borrower's request (and expense) that a drive-by or internal inspection is carried out.

Obviously, the borrower is in the best position to estimate the impact any works done to the property may have on the value since the last inspection.

When remortgaging (moving to a new lender) it is usual for a surveyor to be asked to at least drive by the property. Where the loan to value is under 50%, this is considered satisfactory for the lender's needs. Where the LTV is higher, the surveyor might be asked to inspect internally, to confirm the borrower's estimated valuation. As most lenders have changed to a fee-free approach to remortgage valuations, this is relatively risk-free for the borrower.

The confusion between remortgaging and product change/transfer can cause problems in establishing the true cost of making the change.

Thrugelmir

kingstreet wrote: »

Obviously, the borrower is in the best position to estimate the impact any works done to the property may have on the value since the last inspection.

Many I fear. Fail to distinguish between money spent on a property and actual value added.

holly_hobby

So yes, as discussed we have a drive by or an attended val for a remortgage (which is a release of equity and/or change of lender).

Mge product transfer is not a remortgage - however the mortgagor may require a re-val, in order to demonstrate qualifying status re max ltv criteria of the selected product.

I agree K. always important to qualify where necessary.

H

GSXRCarlos

JimmyTheWig wrote: »

Bizarre.

Carlos, do the Land Registry figures show increases in your area since your last valuation? If so, you might be able to use this to convince Nationwide to up their valuation / come and have a look?
I think that they will be unlikely to take into account your word that you bought it "cheap". Ultimately you bought it for the price the vendors could get for it. Which pretty much fixes its value at that point in time.

have you got a link?

GSXRCarlos

holly_hobby wrote: »

On a remortgage they can elect to do a desktop, drive by or attended val.

An attended val is usually reqd where there are no recent variables, on a challenged val by the individual (if so the individual will pay for an attended survey), or the property is unique or has been significantly improved (where the works are not apparant from street view), in essence anything that may set it aside and quantify the higher estimated value by the applicant, when compared to other suitable compariables available at the time.

Hope this helps

Holly

Apparently nationwide do not affer a valuation service, even one which i could pay for

holly_hobby

GSXRCarlos wrote: »

Apparently nationwide do not affer a valuation service, even one which i could pay for

Well then, looks as though you can't move to the rate you want with Nwide.

Which I know will frustrate you, unfortunately however the ball is very firmly in Nwides court on this one.

If not happy you could seek an alternative deal and lender, and hope that your LTV falls within the required peramaters of the chosen product.

Kings. has given advice to seek fee free deals, which means that if it doesn't value up on survey, you have not incurred any costs (apart from your CRA showing a record of their credit search on you), and you can remain where you until it values up, or the market improves (neither of which can be gted to occur in the shortterm).

Hope this helps

Holly

GSXRCarlos

Thrugelmir wrote: »

Many I fear. Fail to distinguish between money spent on a property and actual value added.

If i took that approach, i'd be thinking the house was worth £120k

JimmyTheWig

GSXRCarlos wrote: »

have you got a link?

Various sites will give you this information. Zoopla is the most comprehensive that I know of.