Surveyor Undervaluation

sandyacreuk

Kingstreet - Now that's interesting - thank you.

The purpose of their "valuation" is to indentify equity within the property for second-charge purposes (financially things are getting critical. Applying a second charge for a short term period solves everything and allows me to move on to a long term plan).

The report is a standard 2 page "Market Valuation" (which I had to pay for using their sub-contracted surveyor!). There are disclaimers in small print including "neither xx or the valuer warrant that this price is reasonable" and "the report has been prepared solely for xx to assess....as security for the proposed advance". Isn' this standard wording on every MVR?

Researching "open-market", "90 day" and "Forced Sale" -
Seems here they are applying a forced valuation. Of course, in my ignorance, I'm paying for an Market Valuation Report and expecting it to actually represent a Market Valuation, similar to the Market Valuation that 7 other independant pieces of evidence suggest it is. But of course it's not - it's a different type of Market Valuation - a valuation that doesn't really represent it's market value........

Let's hope my current letter which outlines my plan in detail is dealt with someone who can accept this is a low-risk proposition, helps them and helps me.

Failing that, it's goodbye house.

kingstreet

When taking a second charge, a lender's valuation requirement is likely to be more conservative, as it will be at the end of the line in getting its money back in the event of repossession.

It has to accept the first charge holder gets all its money, fees etc for the repossession and is stuck with whatever is left over, if anything once the property is sold at the usual lower price.