HSBC undervalued home by £50-60k!

dunstonh

I’m not interested in hearing from those who work in the industry looking for an opportunity to be condescending.

Why do you bother posting then? It sounds like you just want people to say "there, there, never mind. Is the big naughty bank giving you a hard time. Here is a nice new dummy to stick in your mouth whilst we can type horrible things about the bank.

Why the laughs? It makes me feel like the banks are populating these forums, not consumers.

Where? I don't see anyone on this thread with a current banking background that I am aware of. Indeed, the very people you are accusing are actually competitors to the bank in the field they operate in. Personally, as an IFA , I have nothing to do with mortgages.

holly_hobby

I actually thought my post was quite helpful with guidance ....

Oh well ... can't please 'em all I suppose .... this sounds like yet another "only post what I want to hear" thread.

H x

bexterswell

kingstreet wrote: »

A surveyor visited the property, carried out an internal inspection and you are challenging the valuation?

What did you put on the application as your estimate of value? What mortgage amount did you apply for?

Are you applying for an interest-only mortgage with no repayment vehicle other than the sale of the subject property?

Yes we are. We challenge it because the valuation seems to not have taken into account recent sales. Houses with the same floorplan have sold between 402-420k in the past 6 months, ones with extentions (just side extentions or roof extentions) have sold for between £430-475k.

We put top end £430k, but expected a conservative estimate of around £400k. We applied for a mortgage of 298k.

Applying for interest only with a repayment vehicle.

bexterswell

opinions4u wrote: »

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.

I did not like the tone of the replies, surely you can see that. Why would my being a property developer and that we'll move around every few years make you very cautious...? I am genuinely curious as to why that would effect anything. It just means we'd pay back the mortgage quickly, or is it simply that you wouldn't want someone to pay it back quickly as less money to be made?

Thrugelmir

bexterswell wrote: »

Why the laughs? It makes me feel like the banks are populating these forums, not consumers.

If you post on an open forum. Then you must expect a variety of responses. There was some very serious points made. Questions asked have a purpose. Not to illicit personal information but to help provide a better response.

We're a friendly bunch from a variety of commercial backgrounds. Most of all we're experienced consumers ourselves. So seen it and heard it all before.

Majority of posters who get upset. Are those that find that few agree with their views. So rather than debate the matter through. They leap onto their high horse never to be seen again.

opinions4u

bexterswell wrote: »

I did not like the tone of the replies, surely you can see that. Why would my being a property developer and that we'll move around every few years make you very cautious...? I am genuinely curious as to why that would effect anything. It just means we'd pay back the mortgage quickly, or is it simply that you wouldn't want someone to pay it back quickly as less money to be made?

1. Short term lending is often loss making.

2. Property developers have been known to take residential mortgages on properties that they intend to let.

3. Interest only would maximise tax relief on a let property.

There isn't anything that would make it an automatic decline. But an underwriter would be likely to be cautious and carry out a few extra checks.

antrobus

bexterswell wrote: »

... Why would my being a property developer and that we'll move around every few years make you very cautious...?

Is it your intention to declare these profits to HMRC?

bexterswell wrote: »

...
I am genuinely curious as to why that would effect anything....

Because if HMRC come after you the back taxes might trigger default?

Thrugelmir

bexterswell wrote: »

Why would my being a property developer and that we'll move around every few years make you very cautious...?

Times are changing. Property "renovation" was all the rage some years back. In reality most developers would have made the same profit if they had done nothing to the property. Exception was those with cash to buy at auction. Where property could be bought at a discounted price.

Even London commuter belt is not immune to the recession. Cuts in City banking jobs are far from over for example. Recently it was reported that property values have fallen in Chobham, Esher and Weybridge.

bexterswell

holly_hobby wrote: »

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.

Thanks for your advice holly, but I did point out I've already compiled recent sales data....not estate agent prices - Rightmove keep the SOLD FOR prices now, along with the photos and the floor plans. MSE won't allow me to post a link, but if you google 'rightmove house prices' it comes up at the top. It documents sold for prices over the past few years along with all the sales photos and floorplans - very useful. :-)

holly_hobby

Sorry, I thought when you were talking right move you were using marketing prices, apologies.

192 also provides the same info (minus photos of course) and the dreaded Zoopla of course ....

As said, I can't give you any more advice that that I've already posted, as there isn't anything else you can do. And although I post from a professional capacity, as explained I also sufferered a lower than expect valuation on remortgage survey - which I sucessfully had revised - but it wasn't easy and I was lucky with my valuer.

Mine was revised (4 yrs ago) because the valuer was willing to consider the evidence I submitted - albeit I was under no illusion, that he was under any obligation to do so, and had he refused, I knew (from my professional experience) that I had no legal or any other redress against him OR the lender, and my choice in reality would have been to try another lender and valuer (with fingers, toes and eyes crossed !), stay where I was or accept the lower than anticipated valuation figure and mge offer.

Those are the facts I'm afaid, and whilst I appreciate that you consider yourself to be an experienced property developer, so could give factual and relevant advice to those interested in this area - I (and others posting), are v experienced mge and financial advisers - so I do hope that you also give our guidance the same respect.

Having said that, I know that you don't mean to come across churlish in your posts and that its because you're anxious ... so I hope that you do get the resolution you want from this ..... and I of course wish you well.

Holly