Any cases of lenders' surveyors "over" valuing?

DpchMd

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?

kingstreet

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.

Brighty

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


Brighty

Thrugelmir

DpchMd wrote: »

So let's say I offer 100k for a property, the mortgage lender instructs a valuation survey and they value the property at 150k.

Surveyor is working for the lender not you.