LTV when remotgaging

Julielou56

Hi everyone, I’ve read these boards for several years nowbut this is the first time I’ve posted. I’m hoping someone can give me some advice on how to value my house whenI remortgage.

I bought my house for £129,000 in October 2009. I expect the mortgage to have around £101,000left on it when my current deal ends. This would mean a LTV of around 78%. I’ve only made cosmetic changes since so I don’t believe I’ve added anyvalue to the house myself.

However when I bought the house the previous owner was inthe process of part exchanging it for a new build. As there was a slight delay in my mortgage goingthrough the house is recorded as having been sold twice within a month. In September 2009 it is recorded as being soldfor £139,000 (which I presume is the price the builders paid the original owner)and then a month later the £129,000 I paid. If the house was to be valued at around £139,000 this would bring theLTV down to below 75% so I’m not really sure what LTV I should be looking at –75% or 80%?

I know that when I remortgage the new mortgage company willrevalue the house. Are they likely to considerthe earlier sold value or will they just look at what I paid for it? Equivalent houses within the street have soldsince I bought for £138,000 (September 2010), £152,500 (January 2012) and£142,000 (June 2012) so I do think the house is probably worth more than£129,000 but obviously the last of thesesales was a year ago and so I’m not sure how relevant they are. There are also no equivalent houses beingadvertised for sale at the moment so I can’t use for sale prices as a guide andthe houses that have sold within half a mileof the house more recently are not that comparable as they are either bigger or ex councilwhich my house is not.

Thanks in advance for any advice given

Julie

Thrugelmir

Julielou56 wrote: »

In September 2009 it is recorded as being soldfor £139,000 (which I presume is the price the builders paid the original owner)and then a month later the £129,000 I paid.

Price of the new property would have been inflated. The builder didn't knowingly lose £10k.

hcb42

If the houses in the street are anything to go by, a new valuation might just get you just under that 75% mark. Or could you chuck in a few thousand to tip the balance if not?