Devalued by survey - how much will the mortgage provider lend?

garmei

witchy1066 wrote: »

sorry to butt in and apologise to OP

but I would love to know how they come up with a house value if nothing in the area has sold since 2006

A bit confused... I never mentioned what area the house is in, so what have you been looking at?

:rotfl:

garmei

Jaybo10 wrote: »

We had exactly the same thing.

A property we liked went to sealed bids. We offered £425k and our offer was accepted. Mortgage valuation came back at £360k. Sadly we didn't have £65k knocking around (who does!?). We appealed and eventually the valuer revised his decision and it went up to £380k - still not enough for the seller so it went back on the market and was bought by a cash buyer for £425k.

Do you mind me asking how you managed to successfully appeal the original valuation?

Full_of_angst

garmei wrote: »

Thanks for the reply.

They are horrendous to deal with in every conceivable aspect of customer service. They have not saved me £38k, they have simply stated what they think it is worth and unfortunately it is a lot less than I value it at. I have learnt a lot this week about the differences between a mortgage providers valuation survey and an indendant survey for a private individual.

Thanks for the definite answer though, at least I know where I stand.
Cheers

That's absolutely true; you could have a local surveyor who knows the area and understands the market nuances in that area value it at one price; then a mortgage valuation is carried out - possibly by someone who doesn't have the same depth of local knowledge and value it much lower. However, there are of course the occasions when the lower valuation might save you from over paying... I did a lot of reading up on this and it appears to be prevalent in certain areas, types of property and specific surveying companies.

Thrugelmir

garmei wrote: »

The mortgage company has been horrendous to deal with and I haven't been told how's much they are willing to loan me. would anyone be able to confirm or speculate whether they will lend me up to the £200k valuation amount or will they only lend me £180k (I.e. the valuation minus my 10% deposit). Or could it be somewhere between?

How much have you applied to borrow as a mortgage? The ball is in your court. The lender isn't playing games. Totally the opposite.

witchy1066

garmei wrote: »

A bit confused... I never mentioned what area the house is in, so what have you been looking at?

:rotfl:

ah us witches have special powers (I wish) :rotfl:

I was looking at the house we are hoping to buy ,and nothing in that area has sold for 6 yrs

Jaybo10

garmei wrote: »

Do you mind me asking how you managed to successfully appeal the original valuation?

We approached the estate agent and asked them for similar properties they had sold, and were in the process of selling in the area of equivalent sqft. They helped a lot as it is in their interest to get the sale.

We laid it all out highlighting the rising market and describing all the reasons why this particular property was worth the price we offered and then we put this to the mortgage company and asked for the surveyor to review it.

I think we had about 5 comparable property details

I also got the name of the surveyor, before we sent the challenge, and looked him up and contacted him by email (I emailed as I didn't trust myself not to get emotional and I was able to be more restrained and measured).

He actually rang me and we had a discussion about why he valued it at the lower price. It was hard to swallow but some of what he said made sense, however I disagreed with other parts. It was a calm and rational discussion and I just about held myself together. What I didn't do was scream and shout at him that he had ruined everything (which was what I was feeling) as he does a lot of valuations in the area and who knows if we were to encounter him again.

Even though he did revise his valuation (something the mortgage company told me was very rare) it was still not enough to secure the property.

I would love to tell you that we've now found something better but sadly not. However, at least I know I tried everything I could to get it.

garmei

witchy1066 wrote: »

ah us witches have special powers (I wish) :rotfl:

I was looking at the house we are hoping to buy ,and nothing in that area has sold for 6 yrs

Duh, sorry, I understand now.

But I wouldn't presume to know enough to answer your question.

kingstreet

In addition to comparable requirements mentioned, surveyor's follow the RICS Red Book instructions on valuing property. I don't have a copy so cannot say much more than that.