HSBC undervalued home by £50-60k!

holly_hobby

I can appreciate your disappointment, but its all been said, the valuer has valued the property based on the sq ft, spec, etc, and recent comparibles, and you must remember that they (in the case of a basic survey) act for the lender not the owner/purchaser - with their remit to value the property at a realistic price for onward sale in a reasonable time, in the event of default by the mortgagor and possession.

As GG has explained, you can seek to challenge a valuation (indeed I've succesfully done this with my own property a couple of yrs ago), BUT you need to provide insumountable evidence, of recent completed sales ie last 6 mths - of identical/similar properties in your area, and not simply provide evidence of historical marketing figs from EAs (which largely mean nothing when it comes to mge security), and a surveyor that is willing to re-consider (which I was lucky enough to have in my case). As even after all that hard work, the surveyor still does not have to change his/her opinion at all, and indeed can not be forced to do so, unless negligence is cited (ie valued as a 3 bed when its a 4 or something equally ridicilious that would have a fundamental affect to the value) - even with the above evidence.

Another consideration could be for you to obtain your own private survey, firstly I would see if they are on the lenders panel before you instruct (so they may consider accepting it if it does value up, with an admin fee charged) , and see what your 2nd surveyor comes back with.

The danger is it comes at the same fig, or god forbid even lower, and then you are no further forwrad, except down another survey fee !

Changing lender won't necessarily help either, as national panel surveyors such as this, tend to be on the panels of the main lenders (although Halifax use Colley's where they have a geographical presence).

The survey fee charged is relevant to the value of the property noted in the application (refer the lenders table which will guide you), which is why it may seem high whe comparing it to what the valuation actually came in at .

Hope this helps .... try and remain level headed about it, this actually happens rather a lot, but not generally to the extend of 50k I give you !

Holly x

Idiophreak

eddddy wrote: »

How does this work in in bank's favour? They make money by lending money - but they have refused to increase your mortgage to £400k. So they have lost potential profit.

I read that the OP was looking to get a *valuation* of 400k, not a *mortgage* for 400k - and they needed the higher valuation to reach a better LTV and (presumably) a lower rate. Refusing to accept the higher valuation forces OP to stay on a higher rate for the same amount of loan - so they make more money.

In addition, OP, on a repayment mortgage will be paying the bank more each month than they would if they switched to interest only. Fine, it's going toward "capital" in theory, but it will soon be the bank's capital, should OP be repossessed.

_Andy_

bexterswell wrote: »

We are now seeking legal advice should they notrevise their valuation –

Proof that you have no idea what you are talking about. 'legal advice' about a valuation??LMAO!!!!!!!!!!!! LOVE IT

_Andy_

"In a weirdway, I hope HSBC don’t revise the valuation so that we can go to the press and publically demonstrate how corruptbanking system is."

THIS GETS BETTER AND BETTER!!!!! Almost crying with laughter now. Best thread in months!

holly_hobby

_Andy_ wrote: »

"In a weirdway, I hope HSBC don’t revise the valuation so that we can go to the press and publically demonstrate how corruptbanking system is."

THIS GETS BETTER AND BETTER!!!!! Almost crying with laughter now. Best thread in months!

Ah ha ..... now there I'm forced to challenge you lovely Andy..... as its no where near as good as potatoefeet's .... now THAT is an absolute corker .. !!

H x

kingstreet

TBH if a £100k property was downvalued to £87,500, we probably wouldn't bat an eyelid.

A £50k downvaluation on a £400k property is the same, 12.5%.

These are the times we're a-livin' in.

ILW

Yes, but they have put in a new kitchen and some stripped pine doors. Everybody knows that adds at least £100k to the value of a property. Magnolia paint and some twigs in the fireplace then £150k at least.

dunstonh

"In a weirdway, I hope HSBC don’t revise the valuation so that we can go to the press and publically demonstrate how corruptbanking system is."

That is one of the funniest lines of the day posted on this board. Even Mr Potato Feet hasnt beaten that one. At least not today anyway.

A £50k downvaluation on a £400k property is the same, 12.5%.

And well within the typical 15% figure that estate agents would market a property for with the expectation of a sale value around 15% less. The lower figure being the realistic sale price that the bank use.

bexterswell

My questions was to consumers who had been in a similarsituation, I’m not interested in hearing from those who work in the industry looking for an opportunity to be condescending....presuming thatbecause i’m irate over what I perceive to be an injustice does not mean that Iknow nothing about the property market,repayment vehicles et al... You do notknow enough about the market in my local area, the house in question, or my financial situation to form that opinion. I am an architect and I workprofessionally for a high end London property development company.

The property in question is on a popular London commuter belt, someone sheltered by the recession. My neighbours is currently on the marketfor £440k, there are been two houses sell for 402k + 420k in the past six months(same floor plan as ours). I think it’sreasonable to expect that a fair valuation of my house would put the pricecloser to those recent sales than the price we purchased it before we spend 45kon it. What part of that is notreasonable? Why the laughs...

Moving to a interest only mortgage is not out of nesseristy but to save us money, therefore I call it 'savvy'. We have no need for a capital repayment mortgage as we’regoing to move around every year or so for the next few years and pay the restoff in lump sums, the amount paid off on the capitial is so minimal in the short term. As we’ve spent circa £45k on our home we wanted to stay a bitlonger to enjoy it and because it’s now worth more (it's as good as ones that sold recently), we worked out it would bemore cost effective to switch to an interest only.
Why the laughs? It makes me feel like the banks are populating these forums, not consumers. But thanks to the consumers who have been helpful - I may well get the EA valuations in writing and email receipts, however we know they overvalue - but "sold for" prices as I've compiled they can not dispute.

opinions4u

bexterswell wrote: »

My questions was to consumers who had been in a similarsituation, I’m not interested in hearing from those who work in the industry

A bit narrow minded of you not be be interested in the views of those who could give you most insight in to your situation.

Regardless, if I was underwriting your application talk of interest only, moving around every year and working for a property developer would make me very cautious. Even if the valuation stacked up.