LTV disagreement with Lender

RobSo

Looking to remortgage and move to fixed deal but current lender undervaluing my property (index based valuation) with a result of LTV of 80% - not good. Planning to get house revalued, however lender states they will not accept any valuation, best the can do is a 'drive by' valuation.

Does anyone know a lender that will accept a full estate agent valuation, as by my reckoning the actual LTV is approx 60%, and that's me being conservative..

mrginge

What makes you think either an EA or yourself are better qualified to value a house?

Perhaps you should try a different lender.

RobSo

I may not be better qualified, but given houses in my street, without the 2 extensions I have are selling at more than the lender is quoting my house is worth - common sense says, the lender is wrong.

That's why I am looking for lender that will use a valuation based on actually looking at the house.

SG27

I doubt any lender will accept an estate agent valuation!

RobSo

Thanks to both for your replies. Can you provide any alternatives, on how I can get any lender to consider the value of the property based not just on sales in the area, but also the added value improvements. Or am I being to concerned over the impact of an 80% LTV to the range of deals available ?

Gonzo33

You need 3 comparables within 3 months (sold properties). Then send them to lender to challenge.

ACG

You can ask the lender to do a revaluation, which they have said they will do. A drive by is still a valuation they will accept.

Alternatively you can go to a new lender.

No lender will accept an estate agents valuation of the property... Im in the same boat, in 2-3 months i have to pay to get my house valued as i bought it for below market value spent a lot bringing back into the right century and its now worth far more than their system would say it is.

ACG

Gonzo33 wrote: »

You need 3 comparables within 3 months (sold properties). Then send them to lender to challenge.

Thats only if your appealing a surveyors valuation of the property.

A surveyor has not valued it since the mortgage was taken out...

RobSo

This is the problem - no comparable properties. Basic house when built was 3 bedrooms, 1 bathroom and 1 reception room. I have 3 bedrooms (1 is double sized as 2 bedrooms knocked together), 3 bathrooms, 2 reception rooms, garage, utility room and sun room. Yet lender basis for valuation is the original basic 3 bedroom house

ACG

Look at this from the lenders perspective....

You are calling them up and telling them the value of your house has risen faster than others.

You have a reason in the sense that you have done work on the house, but they only have your word for it.

The EA may back up what your saying, but they have no idea who the agent is and EA in general and not the most trustworthy of people. It could be your mate.

So in order to evidence what you are saying they want someone working on their behalf to back it up.