Challenging a Valuation

nothappy44

We are with RBS and had our property (detached bungalow) valued by them (at a cost of £250) in January 2012. The house valuation came as £215,000.

We have since done some extensive works that has added a reception room (with very expensive glass dome roof) increased the size of the bathroom and full new high end suite. Had brand new kitchen (with high end finish granite work tops etc) we have added a set of oak stairs in and plan to convert the loft into a bedroom with ensuite. This is currently at a stage of first fix of the plumbing. Walls are all studded just need insulating new beams and floors are down. The hallway where the stairs is still needs a little bit of finishing work such as plastering touch up.

We had to take a personal loan to get the work done and were planning to get it revalued to do some additional borrowing to pay off the loan and finish of the work.

We have had it revalued today (another £250) and they have come back saying its worth £190,000! with maximum value £220,000 once the upstairs is finished! Its a different valuers than the value in January. We have had 2 different estate agents who have said it would market for £249,000 for £235,000 to £245,000 sale on Zoopla when we update it all it comes out as £247,897.

Can we argue with them about it? They have said they will go back to the valuers to see if they will change their mind!!!! But i want a second opinion and they are telling me that they wont accept one!

It has left us in a right mess and we will probably end up losing our house because of this and I am sure it will sell for £230,000 to £245,000!!!

If anyone has any advice then please let me know
Thanks

neil9313

Why would you lose your house?

Dave_Ham

You can challenge by all means, although Zoopla and the Estate Agents mean absolutely nothing.

They will look at the value based upon largely what the places near you have sold for, against what they have previously sold for and therefore attach a net worth.

I am not saying they are right, but if you pull a stately home from a street in Chelsea and dump the house somewhere else it will not be worth anywhere near as much. So whilst your modifications are desirable and nice, the biggest impact on property worth (from a banks perspective) is location.

You can always apply for a remortgage (typically valuation and application is free) and put in a revised valuation and a new surveyor will come out to assess and you are highly likely to get another valuation on your property..

All the best

StuC75

Maybe looking to release additional borrowing to complete the work; so need a particular LTV ratio to keep that running along..

Difficult to say which valuation is correct, need more info on what is happening in the local area - re selling prices and property conditions..

I know in our Street those going up for sale (including what we bought a year ago) are Estate sell offs and so house is dated (older residents) and needs updating so selling for less compared to previous sales where house not needing modernisation..

If the valuation is based on those then it is potentially misleading..

DannyboyMidlands

A new bog, a new kitchen and a glass dome roof aren't going to add much value. The loft conversion might but you haven't finished it. When you have they would value it at 5 grand more than the January valuation. Sounds about right to me.

Conrad

nothappy44 wrote: »

We are with RBS

A pseudo nationalised rescued lender with massive toxic debt expsoure is understandably very cautious. I keep asking folk on here why they went with such lenders?

CBR600F_2

Surely you mean quasi-nationalised?

I went with RBS/Natwest because I heard they put out on a first date. What can I say? I was feeling horny and desperate. And sure enough, they lived up to expectations. Now I have this weird rash, and it burns when I pee.

Thrugelmir

nothappy44 wrote: »

We have since done some extensive works that has added a reception room (with very expensive glass dome roof) increased the size of the bathroom and full new high end suite. Had brand new kitchen (with high end finish granite work tops etc) we have added a set of oak stairs in and plan to convert the loft into a bedroom with ensuite. This is currently at a stage of first fix of the plumbing. Walls are all studded just need insulating new beams and floors are down. The hallway where the stairs is still needs a little bit of finishing work such as plastering touch up.

We had to take a personal loan to get the work done and were planning to get it revalued to do some additional borrowing to pay off the loan and finish of the work.

Personalisation does not necessarily equate to added value. In essence RBS aren't interested in lending you money in my honest opinion. Particularly as if you've enquired after spending money and haven't enough to finish the work. This in itself could cause a down valuation.

CBR600F_2

Those granite work surfaces do sound sexy though. I bet you could chop up quite a few hookers on those. I mean, if you wanted to.