Can much be done about the banks automated valuation amount?

Herzlos

I'm looking at re-mortgaging but the valuation given by BOS is too low. It's estimating it at almost exactly £100k, which was explained previously as being essentially the sale price at the time (8 years ago for £115k) adjusted by market trends, assuming the house stayed the same. I have a hard time believing the house is still worth 13% less than in 2007.

In that time I've done a huge amount of work upgrading it (new bathroom, central heating, windows, patio, drive, insulation etc) which must have increased the value somewhat, and Zoopla puts it at being about £125k (which is higher than I'd expect).

To get the better mortgage deal I'm aiming for a value of £111k which is just shy of the average of the 2 valuations and seems fair for the work done.

It's only for a re-mortgage, I've got no intention of selling, but it'd save me nearly £100/month in interest.

So does anyone know if there's anything I can do about it? Provide evidence of the Zoopla quote and of the work I've done?

kingstreet

Is this really a remortgage, or are you returning to your existing lender for a customer retention product?

audigex

Switch to a different lender, they'll perform a separate valuation. The problem is that the current lender is simply taking the original price and deciding if they expect it to have changed.

The separate valuation will take into account changes.

Alternately get in touch with the bank and ask if there's an appeals process, or whether there's a "circumstances have changed, the automatic valuation is irrelevant" option.

Herzlos

kingstreet wrote: »

Is this really a remortgage, or are you returning to your existing lender for a customer retention product?

How do they differ? Just because I'd go elsewhere if they provided a better deal?

I think I'll give them first crack at it and go to a broker.

kingstreet

A remortgage is a new mortgage from a new lender used to repay the mortgage on the current property with the existing lender.

A customer retention product is a new rate from the existing lender when initial fix or whatever has ended.

The procedures in each case are different.

Contemptuous

Herzlos wrote: »

How do they differ? Just because I'd go elsewhere if they provided a better deal?

I think I'll give them first crack at it and go to a broker.

You only remortgage if you move lender.

Herzlos

Ah, I didn't know that. I assumed any change to the mortgage deal would be classed as a remortgage.

I'd rather not change lender (because it's convenient, nothing else), so it looks like I'm after a customer retention product.

kingstreet

Okay.

Halifax/BoS has an automated valuation (AVM) in the first instance.

If you feel this is providing a lower valuation than should be the case, you will have the option of a drive-by valuation at a cost of about £85, or an internal inspection, for about £135.

You would choose the one most likely to return the valuation you feel appropriate.

For example, choose an internal inspection if you have done high-spec internal improvements you feel are the reason for your valuation improving more than the AVM output.

Herzlos

Would a drive by valuation cover improvements to the house or is it purely an updated guess based on the area?

Would I be better off getting a local estate agent to give me a valuation I can use?

audigex

It would cover improvements visible from the outside - eg drives, garages, conservatories etc. It wouldn't cover anything they can't see from the outside.

Contemptuous

Herzlos wrote: »

Would I be better off getting a local estate agent to give me a valuation I can use?

No lender will use an estate agent's valuation.
They have specific valuers they use and will only accept figures confirmed by them.