valuation higher than purchase price...

wannahouse

Our revaluation was done, after we did the works the bank requested btwn exchange and completion in order to release the mortgage funds to complete, and the valuation came back a fair bit higher than the purchase price :j
as a result it has dropped our LTV, and now we will be on a much cheaper interest rate, so that was a nice suprise when the bank called to tell us!!!
is this common?
I thought that kind of thing never happened- that it would be valued at no more than the purchase price in any situation, not that i'm complaining!
Its just that we have had such trouble with this valuer from the beginning, from the bogus japanese knotweed claims, through to him challenging the findings of the FRICS surveyor that debunked all his flagged concerns, so we certainly weren't expecting him to come back with a valuation like he did!

at any rate, we finally will complete next friday, over a year after viewing and putting in our offer!...

kingstreet

It should have made no difference, as the lender takes the purchase price, or the valuation, whichever is the lower.

Unless you are purchasing from a family member, or landlord as a sitting tenant?

wannahouse

no, we're not!
Just purchasing from a stranger...
we had to do works on the house called for by the bank- £30,000 worth, btwn exchange and completion, and also did some extra things we weren't asked to do, like a new kitchen with granite work surfaces and painted/sanded and polished the floors etc, with the vendors consent , which makes the house look much better, but i was very surprised to be told the valuation was higher, so they were moving us onto a different deal!
I thought the same as you- that they would take no more than the purchase price, but they have?
we didn't ask for that.
do you think maybe its because we have improved the property greatly from the condition it was at offer?

Let_Us_See

Very, very unusual. There must be at least one human being remaining in your bank with a thread of commonsense.

Jonbvn

wannahouse wrote: »

no, we're not!
Just purchasing from a stranger...
we had to do works on the house called for by the bank- £30,000 worth, btwn exchange and completion

I have never come across anything like this before. Did the vendor move out after exchange?

I would also consider that it would entail some risk on your part e.g. if your mortgage/valuation encountered problems.

Anyway, congrats on an axcellent outcome.

wannahouse

Jonbvn wrote: »

I have never come across anything like this before. Did the vendor move out after exchange?

I would also consider that it would entail some risk on your part e.g. if your mortgage/valuation encountered problems.

Anyway, congrats on an axcellent outcome.

Thankyou....yes, the house has been empty and going downhill for 5 years, so we were able to go in and work on it as if it were already ours...
we had a definitive list from the bank that if we did xyz the funds would be released upon satisfactory reinspection, and the valuer had already confirmed that once those things were done, the house would be suitable security.
The vendors were also very relaxed and never hassled us once in the year it has taken to get to this point, with all the banks mucking around over the summer, taking another 14 weeks to resend out the mortgage offer.
We knew there was a theoretical risk to doing work btwn exchange and completion, but the property is one of those once in a lifetime purchases that was worth the risk., and there is alot of upside to the property as we continue doing it up.

Voyager2002

Well done!

Just goes to show that persistence can sometimes pay off!