Repo is street affecting remortgage valuation?

19lottie82

Last year I re mortgaged my property and it was valued at £110k.
An accurate valuation imo as 2 flats in the same street had sold for similar prices within the last 6 months.

Slightly after this an almost identical property was repossessed and sold for £75k.

My fixed rate mortgage finishes in 9 months and if I move to another lender I will need another valuations.

Will this cheap repo affect my property price, or will the valuer realise that this was a one off cheap sale, due to the circumstances?

Thanks!

kingstreet

Repossessions are not included in the land registry figures, so the sale will not have any impact on your value.

19lottie82

That's the answer I was hoping for, thanks Kingstreet!

wannahouse

hmmm...we'll i don't know how that works as the deveolopment our flats were in were badly affected by repossessions, so during the boom, where quite a few people had multiple offers on their flats, when it came to survey, they were downvalued by around 75,000 - 100,000, despite the fact there were many offers offering the asking price, and the asking price did seem to be in line with other properties in the area.
the reason given was the number of repo's in the area brought the prices down, so now all our flats were worth the repo price!!!

in the end, we held onto ours and are grateful we didn't sell it as the rental yield is good, but repossession certainly affected the price of places in our development!