Undervalued by the bank - can I query that?

SuperSaver123

Hi,

Does anyone have any experience with querying bank valuation? The house has been valued for rent at £1,350 but agent offered 3 comparables with over £1,500. I just looked at rightmove and all above £1,500 in the area, 2 bed house is at £1,400 of similar condition (and this one is 3/4 bed). Zoopla (I know some will say not too reliable but still) shows £1,470 so how did the surveyor came up with £1,350??

Borrowing decreased by nearly £30k because of this.

The value of the house is down by £10k which doesn't worry me that much but I might as well query this at the same time.

I am sending agents comparables to the bank but wanted to hear if anyone has had similar experience and succesfully changed valuation (or not).

Thanks!

SuperSaver123

Just renewing the thread for any advice/comments.

Thanks!

amnblog

It is very rare for a valuer to change their mind on such a valuation.


Do you have examples of similar properties actually rented? Properties merely listed for rent are irrelevant.


Good luck with it but it would make sense to start working on plan B.

tvfreek

I've had cases where the rental was a little short, some surveyors can be persuaded for the sake £50 a month to make a deal work but few lenders let us speak to their surveyors.

SuperSaver123

amnblog wrote: »

It is very rare for a valuer to change their mind on such a valuation.


Do you have examples of similar properties actually rented? Properties merely listed for rent are irrelevant.

Yes, I have 4 properties actually let confirmed by the estate agent. £1595, 1500, 1495 and 1475. I also have confirmed lets by the estate agent of £1,350 pcm BUT for 2BED FLATS! Quite different to 3/4 bed house!

I cannot see where the surveyor took the figure from in the first place??

SuperSaver123

amnblog wrote: »

Good luck with it but it would make sense to start working on plan B.

Plan B? We have no extra £30k anywhere (and this is how much the bank decreased the lending because of the lower valuation of the rent). Maybe we could put it on the market and have the let agreed to prove it is worth more than £1,450 (this is how much minimum we need to be able to get the amount we need) ?? Is that an option? It would, however, put off some of the tenants as we cannot set the date of move until we complete on the purchase of the other property and again it would delay the process so much. We wanted to take it easy with the move as we have a small baby. We wanted to redecorate the other place before we move.

SuperSaver123

tvfreek wrote: »

I've had cases where the rental was a little short, some surveyors can be persuaded for the sake £50 a month to make a deal work but few lenders let us speak to their surveyors.

So does it actually go back to the same surveyors?

SuperSaver123

The surveyors are valuing low or very cautiously, as some people word it. The other property we own, the surveyor was going to value the rent as £750 when it was actually let for £900 for nearly 2 years now with the same tenants. He changed it however before it went to the bank so we didn't have that worry then.

Mortgage_Mark_2

I would imagine that there is something in the surveyor's mind that is giving a reason for that figure.

In my experience overturning a valuation is almost unheard of as you're basically asking a very qualified individual to say that his professional opinion was wrong. Not likely.

There should be some sort of appeals process, providing it's not a remortgage (most remortgage surveys are done free of charge and therefore have no right of appeal).