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Any cases of lenders' surveyors "over" valuing?
DpchMd
Posts: 540 Forumite
So let's say I offer 100k for a property, the mortgage lender instructs a valuation survey and they value the property at 150k.
Would lenders ever do this?
Would the additional 50k be considered in LTV calculations? If so, could the borrower qualifier for a cheaper rate?
Would lenders ever do this?
Would the additional 50k be considered in LTV calculations? If so, could the borrower qualifier for a cheaper rate?
"Beware of little expenses. A small leak will sink a great ship." - Benjamin Franklin
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I've seen two valuations which came back over the agreed price in thirty years. They were both about £2,000 more.
A mortgage report and valuation is to establish if the purchase price is reasonable, so surveyors have no incentive to value at more.
It's more of a yes or no, than a how much.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
No
LTV is based on the lower of either the purchase price or the valuation, so a high valuation can never improve your LTV.
Also, from what I've seen in the past, surveyors rarely say what the house is worth as an exact figure, just that it is worth the purchase price
Brighty0 -
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