Remortgage Valuation

Terry_collins

Hello All

I am astonished that my lenders drive by valuation has come back with a valuation of 275k for our 3 bed terraced in London. Prior to the valuation it was valued by them at 287k. I am so annoyed and do not know what I can do as similar properties on nearby roads are selling for at least 30k more in worse condition, estate agents have valued my house for 325k plus Zoopla estimates its 310k.

Help as I want to remortgage but my poor credit rating (2 defaults from 2011) means I have to stay with my lender.

holly_hobby

If you are staying with the same lender, this isn't technically a remortgage but either a deal switch - assuming due to the defaults you aren't looking for a further advance.

I also assume due to the survey that you are trying to move onto a lower value (and lower pay rate) LTV product - as otherwise it would just be a straight switch with no CRA search or survey reqd.

Any market value given by an estate agent is essentially just a market apprasil (ie what they believe/guess it may achieve on the open market), which can be a little optimistic when compared to a RICS survey for mortgage purposes ..... as you have found out.

It you want to challenge the value given by the surveyor (whom is acting for hte mge lender), then you need to obtain the surveyors consent that they will re-consider the figure, and will need to provide direct recent comparibiles (last 6 mths) of identical or near identical properties in the same area that have achieved on sale the value you believe to be more applicable.

However, even if you do provide such data, and even if the surveyor agrees to have a look, it still doesn't mean they will amend their original valuation (in fact its rare, although I have had this achieved on a few occassions for clients and laterly including my own property remortgage) - but that doesn't mean you will be successfull.

If they won't agree to review, and/or you can't obtain suitable evidence, then thats it I'm afraid.

Depending upon what you are paying now there may be an alternative with an impared credit lender (given that your 2011 defaults are/soon to be 24 mths old - a broker will guide ... but it may cost you more than you'll save (rate wise) by staying with the current lender.

Hope this helps

Holly