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Confused
lucie_1985
Posts: 109 Forumite
We are very lucky and have done quite well (combination of buying at the right time and in an area of "regeneration") that our flat has increased in value quite significantly. Having put all of our savings into the deposit we weren't really left with a great deal for home improvements, given the increase in value it is now feasible to borrow more for this. As is required by the lender we will have someone coming out for a valuation to confirm my estimate which is fine.
Yesterday I spoke to the lender to ask on what basis the valuation is made. She said that they look at the house prices index which I said I didn't understand as on that basis why would someone come out rather than just do a desktop valuation? She didn't appear to be able to answer this and in terms of someone coming out there isn't exactly an extension to be able to show (it's a flat, the price increase is purely to do with the area - it used to be very nasty, that it's London and that there are improvement works ongoing for London Bridge station which is a 15 minute commute away). Following this she said that there was an appeals process to the valuation where they would look beyond the prices index to the postcode.
My flat is in a Berkeley homes development which we were able to buy (relatively) cheaply as it was the first phase so there wasn't huge buyer confidence and they were selling the last flat in the block. No one in the first phase has sold so there's no direct comparison of sold prices - mainly due to value still increasing. There is however a new phase, the blocks are pretty well exactly the same although each flat is 2/3rds of the square footage, nearly double what we paid for the same number of bedrooms and the block is 50 yards from my flat, HOWEVER there is a postcode border between them. Does anyone have experience of valuations/appeals of valuations as it just seems mad to go on a postcode valuation when the most direct comparison is so close with a difference of one number. I'm confused
Yesterday I spoke to the lender to ask on what basis the valuation is made. She said that they look at the house prices index which I said I didn't understand as on that basis why would someone come out rather than just do a desktop valuation? She didn't appear to be able to answer this and in terms of someone coming out there isn't exactly an extension to be able to show (it's a flat, the price increase is purely to do with the area - it used to be very nasty, that it's London and that there are improvement works ongoing for London Bridge station which is a 15 minute commute away). Following this she said that there was an appeals process to the valuation where they would look beyond the prices index to the postcode.
My flat is in a Berkeley homes development which we were able to buy (relatively) cheaply as it was the first phase so there wasn't huge buyer confidence and they were selling the last flat in the block. No one in the first phase has sold so there's no direct comparison of sold prices - mainly due to value still increasing. There is however a new phase, the blocks are pretty well exactly the same although each flat is 2/3rds of the square footage, nearly double what we paid for the same number of bedrooms and the block is 50 yards from my flat, HOWEVER there is a postcode border between them. Does anyone have experience of valuations/appeals of valuations as it just seems mad to go on a postcode valuation when the most direct comparison is so close with a difference of one number. I'm confused
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Comments
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anyone have any experience?0
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Might be best to see what the experts value it at before worrying.0
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I see your point but the nationwide "expert" I spoke to seemed to think it was just based on index data which just sounds wrong...why go to the effort of having someone come out f they just need a data table and a calculator? I just don't really understand what an on site expert actually does, I've requested the brochures for the new blocks in anticipation of the visit but obviously don't want to bombard the poor guy!0
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lucie_1985 wrote: »I see your point but the nationwide "expert" I spoke to seemed to think it was just based on index data which just sounds wrong...why go to the effort of having someone come out f they just need a data table and a calculator? I just don't really understand what an on site expert actually does, I've requested the brochures for the new blocks in anticipation of the visit but obviously don't want to bombard the poor guy!
Probably best if you offer him/her a drink and then leave them to do their job.0
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