Mortgage valuation issue

northernsaver

Hi folks,

Hoping you can help me with my issue.

We're in the middle of remortgaging. We've just had the valuation come back at £118k, when we estimated £135k. Total shock and would like to know if there's any point/if I can challenge this.

I bought the house 3.5 years ago for £110k when it was a repossession & a complete dump. Since we've redecorated and put in a new kitchen and redone the garden. 2.5 years ago my then-boyfriend moved in, so I got it revalued. The estate agents valued it at £135k with a view to get £130k for it.

I told the mortgage company this and they said that "our valuer value the property a totally different way to that of agents".

Our LTV has now increased so we've got to have a higher rate.

There are properties for sale around my area for between £130k-145k (totally appreciate this is the FOR SALE price, not sold). On nethouseprices.com it says the average for properties SOLD is £141k. Zoopla say our zed-index is £117k, I don't know what this means but I'm guessing the valuer looked at this to get his estimate - and it says the average change over 3 years is £9k. I'm guessing the valuer has just gone off this - and not took into consideration anything else, such as the state the house was when I bought it.

What does everybody think please? Is it worth asking the valuer (and can I?) how he got to his decision?

kingstreet

A chartered surveyor compiles comparables, the recent sold prices of similar property in the vicinity.

EA marketing appraisals and asking prices will usually be a lot higher than that, so a marketing estimate of £130k/£135k can easily end up with a sub-£120k sale price.

northernsaver

Thanks kingstreet. That £130-135k was 2.5years ago so I would of hoped it would be even higher.

Carrera74

I'm not sure if this is still the case but years ago when I first remortgaged the house was valued a lot less than anticipated so I questioned it and provided proof of similiar houses that had sold for a lot more than their valuer had quoted. I got the deal I had gone for because of it. It was about 8 years ago though so things are quite likely different but worth querying.

nubbins

Our recent remortgage came back at between 25k and 50k under what 2 or 3 estate agents valued it just before the lenders val. I am pretty confident it was at least 25k undervalued. Remember they are always covering their own uranus's!

pathtofreedom

rachjenn wrote: »

I'm guessing the valuer has just gone off this - and not took into consideration anything else, such as the state the house was when I bought it.

Why would they consider what you paid for it? Not everywhere in the uk has rising house prices, just because the average price they quote in the news is increasing, that is more due to investors buying up new build flats for millions in london, which makes the average for the whole uk be off.

I bought in 2007 and I think it might be another 10-20 years or more before my house is back to what I paid for it, as the price is still dropping right now year on year.

I think the zoopla stats are done by postcode, so unless your road has houses that are all detached and double the price of the next road over, which is all ex council terraces say then I don't think you'll be able to find enough proof to show the price is low.

Really they are trying to help you be realistic as they are looking at if they had to reposses you tomorrow what price would it be, so it is the sell it tomorrow price, which would be cheaper than if you house doctored it and could have it on the market for 6 months to get an offer you wanted more.

Thrugelmir

rachjenn wrote: »

but I'm guessing the valuer looked at this to get his estimate

Highly unlikely.

I bought the house 3.5 years ago for £110k when it was a repossession & a complete dump. Since we've redecorated and put in a new kitchen and redone the garden.

Just because you've spent money doesn't mean a correspondingly huge increase in value. Gardens rarely recover the money spent.

ThisTime

Not read the replies so sorry if doubling up. did a surveyor actually come out or was it an automated val ? I disputed an automated valuation last year and got a surveyor to visit and it went ahead fine.

northernsaver

Does anybody know what valuers use to value houses? I've looked at several websites with 'sold' prices and they're all around £130-140k for very similar properties which is very different to the £118k he's given our property.

In my challenge back to him is it worth putting in zoopla's estimates - things like that? What information is worth adding in?

pathtofreedom

Are you looking at the land registry prices? As just if rightmove/ zoopla changes it to sold, that doesn't mean that is the price it sold for.

chanz4

Zoopla takes it sold prices from landreg