Property valuation when re-mortgaging

jet_pack234

Hi,

We are looking to remortgage because our current deal comes to an end very soon. 2 years ago we bought our property for what i considered to be good value because previous owners wanted a quick sale and we moved quickly.

Now we want to remortgage I want to use our property value to our advantage for the best rate (taking into account LTV). Who decides what our property is worth in today's market? Furthermore our property is very unique - there isn't another one like in the area to make a like for like comparison.

Whats to stop me applying for a remortgage on the basis that I think my property is worth £X despite only paying £Y. In this case would the lender come and and have a look and decide for themselves (no problem with that). Could I loose my arrangement fee if I get it wrong?

thanks all.

Let_Us_See

There is nothing preventing you from nominating a property valuation on re-mortgage. However, it would be pointless if it was unrealistic and did not reflect current valuation trends, and would only get downvalued on survey.

As you have an "unique" property many lenders on re-mortgage use a "desktop valuation" and this will not reflect the uniqueness of your property or true valuation. Two options. Ensure you re-mortgage to a lender that will carry out a physical valuation, or pay an additional fee (most re-mortgage valuations are free) for a physical valuation.

If worried about the lender's arrangement fee just agree on application to add to mortgage, and then either change mind after valuation or pay off after completion.

Thrugelmir

jet_pack234 wrote: »

Whats to stop me applying for a remortgage on the basis that I think my property is worth £X despite only paying £Y.

£Y will be the base point for a valuation. As that's fact.

£X is merely your personal opinion which a valuer will disregard.