Low LTV and valuation fees

christophers

I have a question. Is having a valuation undertaken a legal requirement?

I have no mortgage on my freehold property and would like to borrow 12.5% LTV for an extension. Even if a valuer was having a really bad day and, for example, decided our home was worth a whopping 25% less, then the LTV is still only 16.7%.

In other words, this mortgage is so insensitive to the valuation as to make a mockery of any valuation fee... in this instance, one building society is asking for £840!

If I may head off a possible response here ... I'm aware there are products that offer "free" valuations, but you know nothing is free. The fee is simply accounted for in the other variables.

ACG

Its a remortgage so 99% of deals include the valuation fee.

A valuation is not a legal requirement, its a lenders requirement.
How do they know the property is worth what you say it is?
How do they know the property is not ready to fall over in the next high wind or worse...fell down in the last high wind?

christophers

Anyone with access to the web can see that the plot of land alone has a value five times greater than the loan value. So not only does it not matter if the house is on the brink of falling down, it doesn't actually matter if there's a house at all!

It's a fortunate position to be in I know, but that does mean I consider £840 to conduct a review of the condition of the house to represent a total waste of money.

ACG

Yes they could go on the internet and probably get a good idea how much it is valued at. However the internet does not give a 100% accurate story. The plot of land may not have a house on it, it may have a pub on there or a load of travelers.

You have 2 choices at the end of the day - find a deal you are happy with or knock it on the head. There is no point moaning about it as they are not going to change their rules and processes for you, me or anyone else.

Thrugelmir

christophers wrote: »

In other words, this mortgage is so insensitive to the valuation as to make a mockery of any valuation fee... in this instance, one building society is asking for £840!

Surveyors set the fees. The lender merely recharges the cost to the borrower.

heytoki

ACG wrote: »

Yes they could go on the internet and probably get a good idea how much it is valued at. However the internet does not give a 100% accurate story. The plot of land may not have a house on it, it may have a pub on there or a load of travelers.

You have 2 choices at the end of the day - find a deal you are happy with or knock it on the head. There is no point moaning about it as they are not going to change their rules and processes for you, me or anyone else.

Amen!!!! :T

TrickyDicky101

Thrugelmir wrote: »

Surveyors set the fees. The lender merely recharges the cost to the borrower.

This wasn't the case for my NW mortgage - the lender fee was twice what the surveyor charged them (so they add a sum to cover their 'costs').

amnblog

Where is the lender's protection if there is no attempt made to assess the security?

kingstreet

TrickyDicky101 wrote: »

This wasn't the case for my NW mortgage - the lender fee was twice what the surveyor charged them (so they add a sum to cover their 'costs').

£65.

It's on every KFI under "valuation administration fee" and it's probably paid to Countrywide as panel manager in Nationwide's case.

Doofs69

bang on the button