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valuation for buy to let mortgage
chrishar
Posts: 178 Forumite
When you get a buy to let mortgage, does the mortgage company take your word on the value of the property?
If they send out a valuer, do they inspect the property or just do a desktop valuation?
Are they always aware of the remaining term on the lease, if it's a leasehold?
If somebody valued their property at £150k, and other similar properties were selling for that, they could get a £112.5k mortgage.
What if the lease was actually 60 years and the value in reality only £120k? Would a mortgage company find this out?
If they send out a valuer, do they inspect the property or just do a desktop valuation?
Are they always aware of the remaining term on the lease, if it's a leasehold?
If somebody valued their property at £150k, and other similar properties were selling for that, they could get a £112.5k mortgage.
What if the lease was actually 60 years and the value in reality only £120k? Would a mortgage company find this out?
0
Comments
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Everything will come to light.
No lender is going to part with £'000's of pounds on your word alone........0 -
Hi Thrugel
So what you are suggesting is they will investigate into the terms of the lease?
Thanks0 -
The lender will have the solicitor which acts for it confirm the lease term to the lender. If it falls below the lender's minimum, see here;-
http://www.cml.org.uk/cml/handbook/englandandwales/question-list/321
the case will be declined.
If acceptable, the residual lease term will be referred to the valuing surveyor to see if a revised valuation is needed.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
It sounds more like hope, or desperation, than expectation.
https://forums.moneysavingexpert.com/discussion/comment/63955599#Comment_63955599I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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