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Letting agent severely over value BTL property
Ladyhawk
Posts: 2,064 Forumite
Hi Everyone,
Hope you can help.
I have a flat that I let out which I bought at the beginning on 2007 and which dropped in value hence I didn't sell when I moved out.
Anyway I have been letting it out and I wanted to change my mortgage and relaease some equity to replace the roof on my new house. Anyway the letting agent valued it at £115-120k and based on that I applied for a new mortgage and paid about £400 in mortgage fees. The lender did their own survey and state that while the property is in good nick, the market is still in the doldrums and the flat is only worth £96k.
Based on this valuation I cannot get the mortgage I have applied for £72k and I have about £76k still outstanding on the current mortgage.
I have provided details from the letting agent (also an estate agent) on why I think it should be worth more, but the mortgage provider is not budging on their valuation.
So what can I do as I resent losing the mortgage fees I aealready paid? I do not have a spare £4000 to top up the mortgage.
Hope you can help.
I have a flat that I let out which I bought at the beginning on 2007 and which dropped in value hence I didn't sell when I moved out.
Anyway I have been letting it out and I wanted to change my mortgage and relaease some equity to replace the roof on my new house. Anyway the letting agent valued it at £115-120k and based on that I applied for a new mortgage and paid about £400 in mortgage fees. The lender did their own survey and state that while the property is in good nick, the market is still in the doldrums and the flat is only worth £96k.
Based on this valuation I cannot get the mortgage I have applied for £72k and I have about £76k still outstanding on the current mortgage.
I have provided details from the letting agent (also an estate agent) on why I think it should be worth more, but the mortgage provider is not budging on their valuation.
So what can I do as I resent losing the mortgage fees I aealready paid? I do not have a spare £4000 to top up the mortgage.
Man plans and God laughs...
Perhaps travel cannot prevent bigotry. But by demonstrating that all people cry, laugh, eat, worry and die, it introduces the idea that if we try to understand each other, we may even become friends.
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Comments
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What's the gross rental income of the property?0
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Its £585pcmMan plans and God laughs...Perhaps travel cannot prevent bigotry. But by demonstrating that all people cry, laugh, eat, worry and die, it introduces the idea that if we try to understand each other, we may even become friends.0
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The problem is you believed the estate agent, they are well known to over value.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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I expected it to maybe over valued by £5k or even £10k but £25k its just ridiculous!
But back to my point... is there anything I can do?
some of the options I thought of which want to raise with my broker tomorrow:
- could I pay the difference on a 0% credit card (just applied and got one and will be about to pay it off in a few of months)
- could I keep £5k with the existing mortgage provider?
- Is there anyone else I could appel the valuation to?
- could I take the EA to the small claims court for unsubstantiatable professional advice?
Any other thoughts?
ThanksMan plans and God laughs...Perhaps travel cannot prevent bigotry. But by demonstrating that all people cry, laugh, eat, worry and die, it introduces the idea that if we try to understand each other, we may even become friends.0 -
Its £585pcm
Then the issue is most likely the value of property as a BTL rather than a residential home.
At £115k around 6% gross yield. Lenders will require rent to cover interest at 6% @ 125%.
At £96k rental yield is 7.5% . Which is spot on 125%.
Surveyor will follow lenders instructions. Hence the difference.0
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