Increased value when remortgaging

AnaLondon

Hi all,

I've had a quick look around but can't find an obvious answer - hope someone can advise.

When we bought our flat is was a bit of a wreck and priced accordingly. We spent approximately 15k and a lot of man hours doing the place up and as a result we'd certainly see the renovations reflected in the price we'd ask when we came to sell.

When we come to the end of our fixed deal and it comes to remortgaging I can't work out what will happens though. Will the fact that it's worth more come into play (so we'd get a better rate as we'd be considered to have more in the property than the 15% deposit) or is it all irrelevant as the bank will just consider it worth what we paid for it until we come to sell?

Hope that makes sense. Thanks everyone!

sheilds

Hi A,

We have just remortgaged and the bank valued our property which in turn decided the loan to value deal.

We only bought 2 years ago and were lucky that although the value remained the same as our purchase price (we hadn't carried out any extensive improvements like you) we still got a good deal as 2 years of payments took us into the 75% LTV bracket.
We began AT 80% LTV.

Best of Luck.
S.

AnaLondon

Thanks Shields. Did you ask for it to be revalued or did the bank just do it, and (sorry for all the questions!) did a surveyor come out and look round or did you just get a figure with no explanation? Thanks again!

sheilds

No problem A-we had loads of questions as well!

The bank will value it-I don't think many of them give you a choice.

The person who did the valuation came to the house and had a look around including looking into the loft.
They also asked us if we have made any improvements since we moved in-took about 10 mins and they returned the valuation to the bank on the same day.
We applied to Tesco and the deal included free valuation and legal fees.

S.

kingstreet

To apply, you have to put an estimated value on the application and this determines the product you initially select.

To do this, search here;-

http://www.rightmove.co.uk/house-prices.html

for the recent (upto 120 days ago) sales figures for similar property in the vicinity (0.5 miles). It's comparables like these the lender's surveyor will use.