new valuation for remortgage

emmysmum

I'm planning to book a new mortgage rate for when my fix ends in December. I bought my house around two years ago. It was valued at 180k (Scotland, home report, valuation by chartered surveyors from the area), and we paid 158k.
How would it be valued by a new bank? If I were to get an independent survey done by the local surveyor i would expect the 180k valuation to remain, if not more as the house and gardens have been significantly improved. House prices have remained static in my area.
So, would the new valuation be based on the purchase price two years ago or a surveyors valuation?
I've looked at what either houses in the area have sold for in relation to their valuation, and most sold within 5k of the valuation price.
If its the higher price we could get a 60% LTV product rather than a 75% product. I also don't want to apply for a product and get turned down due to their valuation.
Thanks

hcb42

logic would say the value will be index linked to what you paid for it....

Thrugelmir

You paid £158k. So the property obviously wasn't worth the £180k valuation.

emmysmum

Hmm, that was my thinking too. Yet the chartered surveyors can't be overvaluing property by 20k willy nilly surely? I used the same surveyor for the home report on my flat which I sold at the same time as buying the house (same locality) and sold for the valuation. Its the same surveyors firm that does almost all home reports in my area, so they do know the area well.
When I bought the house, my solicitor did say that the valuation took account of things like size of garden, and that there was s kitchen and bathrooms, but not that they were outdated and needed replacing. That these things needed done was reflected in the offer the solicitor suggested, which was accepted.
If I disagree with the banks valuation, can it be redone?

WellKnownSid

emmysmum wrote: »

Yet the chartered surveyors can't be overvaluing property by 20k willy nilly surely?

They did. A property is only worth what someone will pay for it, and you, err, paid £158k for it...

emmysmum

Thanks for the replies. Have been in touch with the surveyors who did the home report valuation, and they said that prices had increased slightly in our specific locality, so if they were asked to do a valuation on the house now it'd likely be 185k, with a realistic selling price of 170k, due to new bathrooms being installed and having use able outdoor space.
All very strange!! Going to phone new bank and see what they say.

hcb42

...and they say the Scottish system is better....surveyors shouldnt be doing this, overstating valuations, that is the EA's domain!