Nationwide Valuation Appeal

jonomassey

Hi, we are in the process of remortgaging with Nationwide and everything has gone ok until the valuation. Our house is 2 years old and the house was valued at £150k new but we negotiated a 5% deposit so we paid £142.5k. House prices on our street have increased since we purchased according to zoopla and other online valuations so our mortgage advisor said to put £150k but if it was a little lower we'd move from 80% to 85% LTV. The valuation has come in at £135k which takes us to 87% LTV and we can't understand why so have appealed. The only other sales for our type of house on the development where the other 3 houses in our block (ours is a end 3 storey townhouse) and they sold for £150k-£155k. Other 3 storey houses within 1 mile have all sold for £140k plus, what are our chances on appeal?

Thanks

Thrugelmir

Were the other properties sold by the developer?

jonomassey

No it was around 6 years older than ours, it had a garage and ours hasn't but we have a bigger garden and a private driveway for parking for 3 cars.

Brock_and_Roll

Well new houses are a bit like new cars - they lose 10% of their value the moment they come out of the showroom. As a property gets older, the new/used effect becomes less pronounced and more in line with the normal market. The 5% "discount" that the op got is meaningless - who pays the "list price" for a new house or car?

Lenders are well aware of this factor and as such are always cautious with new/nearly new properties. The valuation provided seems reasonable in the absence of evidence of recent sales of similarly aged properties.

amnblog

It is notoriously difficult to get a successful outcome on a valuation appeal.

The information you rely on to mount your appeal, is the type of data the valuation is based on to start with.

I suspect you will need a plan B.