Remortgage to get a better LTV rate

JimmyTheWig

countrygirl27 wrote: »

But confused when looked on nationwide site as it says that they will value it and then choose between the valuation and the purchase price, then base the new mortgage on the lower value. This would mean that the increase in the value would not be of any benefit to me at all....

or have I misunderstood?

You have misunderstood

I would guess that you were looking at the rules for buying a house.
E.g. if a house sells for £190k and the valuation comes in at £200k then the mortgage, when buying the house, will be based on the lower of the two - i.e. £190k.
In your case you will be looking at a remortgage, so they will go with a valuation value.

motch

kingstreet wrote: »

Pick a fee-free product and apply, putting down your best estimate of the current value. You'll then be able to see if the surveyor agrees with you, or if he values it lower.

It will cost you nothing if you decide not to proceed.

I don't want too many searches on our credit ratings. Would like to go straight in with the right deal (Britannia with a 5 year fixed 2.74% no fee would of been good! before pulled):)

I can't quite get my head around how the valuation works in my situation... Block of flats around 20 in total, originally a big old building converted in 2005 into the flats. Every flat sold for between £185k to £240k, my flat is the same as the particular flats sold for between £225k-£240k.

Now I bought mine as a repossession early 2011 for £75k.
Even with what has been suggested of developers giving incentives to sell these flats I wouldn't of thought that could run into £100k or so per flat?? more likely 10 or 20 grand?

For me to get a 60% LTV I only need it to be valued at around the £105k mark.

So for the evaluation:

1) If the valuation is based on what I paid for it, it will still be around £75k as the market here has been flat for the last 2 years. So that would be no good for me.

2) If the valuation is based on 2005 prices minus House price drop for area (approx 15% at a rough estimate) that would be around £180k-£200k. Even with a 2005 buyer incentive eg of say... £30k, would still make it £150k in today's money. Which would be very good for me!:j

so anyone know if 2) can be done, or has done this?

Thanks for all replies so far BTW

bigadaj

Look it's not difficult. The valuation is what someone would pay for it today, so check against and registry. You have said yourself that the market is flat, it's therefore likely to be worth roughly what you paid for it, that the value.

With new flats, patticulalry sine the crash, the analogy is almost with cars. Drive a new car out of te showroom and it loses 20% or more, and costumes to devalue at a continually decreasing rate.

Kingstreet's advice is the only sensible way for you to proceed, just don't be disspointed when they tell you your 75 grand flat isnt worth a quarter of a million.

motch

bigadaj wrote: »

Look it's not difficult. The valuation is what someone would pay for it today, so check against and registry. You have said yourself that the market is flat, it's therefore likely to be worth roughly what you paid for it, that the value.

With new flats, patticulalry sine the crash, the analogy is almost with cars. Drive a new car out of te showroom and it loses 20% or more, and costumes to devalue at a continually decreasing rate.

Kingstreet's advice is the only sensible way for you to proceed, just don't be disspointed when they tell you your 75 grand flat isnt worth a quarter of a million.

:)I'm not bothered if the flat is worth 250k or not (I know it isn't anywhere near that) I'm not even bothered if it was less than I paid for it.

I'd only want/need it to be valued at around £105k to get a 60% LTV mortgage.

Your analogy with new flats has some credit but not to the degree you describe.

What i'm trying to get at is, most other mortgage holders in the block of flats will have far higher mortgages than me on flats valued at a far higher price getting a far higher LTV mortgage.

And I have exactly the same flat in the same or better condition.

JimmyTheWig

If you want to get an idea of what a mortgage company will do without getting a credit search then, as I said earlier, speak to your current lender.
Or speak to the lender that you want to go with, without making a formal application.

I think that it is fair to say, from what you've said, that the flat is worth more than a desktop valuation would show.
In terms of your number 2, you seem to be wanting a desktop valuation based on a previous selling price which isn't the last selling price. I can't see that happening.
So the questions to ask a prospective mortgage company is will they do a desktop valuation or send a surveyor? If they don't send a surveyor and you disagree with the valuation, what can you do about it?
I believe the answer to this second question is you can have their surveyor do a valuation that they will accept but you will have to pay for it. I would imagine that the cost of this valuation would be worth it in terms of the mortgage deal that you will then be able to get.

Obviously if a surveyor comes round and values it too low then you are stuck. But from what you have said (and I guess at this point, when it will be you paying for the valuation you need to look at what you have said objectively as to whether it is accurate or not) that shouldn't be a problem.

motch

thanks for the reply JTW.

Just a quick question regarding repossessions, do they show up on the searches, as the only flats sold (at least in the last couple of years) are mine and another, both repo's. All the info on rightmove house prices search state the last sale was in 2006, and they are all the original sales when flats first converted.

kingstreet

As I answered yesterday;-

https://forums.moneysavingexpert.com/discussion/comment/59949435#Comment_59949435

no, they don't.

Price paid information excludes:

all commercial transactions. By this we mean any transaction that involves a corporate body, company or business
sales that were not for full market value. By this we mean, the sale of part of a property, a share of a property or the sale of a property at a discount. This includes right to buy properties, a repossession sale or a transfer between parties on divorce. Please see below for a full list
sales that have not been lodged with Land Registry.
The following will be excluded from our figures:

All commercial transactions

Transfer, conveyances, assignments or leases at a premium with nominal rent which are:
Right to buy' sales at a discount
subject to a lease
subject to an existing mortgagee
to effect the sale of a share in a property
by way of a gift
by way of exchange
under a Compulsory Purchase order
under a court order
to Trustees appointed under Deed of appointment where no beneficial interest passes
Vesting Deeds Transmissions or Assents of more than one property
Leases for 7 years or less.

http://www.landregistry.gov.uk/market-trend-data/public-data/price-paid-faq#m16

motch

Cheers Kingstreet, I knew i'd asked the question before recently:o