Additional borrowing -How does the valuation work?

bclark

I am interested in borrowing some additional money on my mortgage to fund an extension and new kitchen and I was just wondering how the mortgage company goes about valuing the property?

Is it a proper valuation or is it more of a desktop thing based on average increases since I bought the place?

Foxy-Stoat_3

Index linked so desktop valuation unless the figures are not a true reflection of your current property value.

bclark

Thanks for that, do you know if there is any particular index they use?

I was hoping it would be a bit more specific as I live in an area where property seems to be outperforming even the local market, it's a popular place and there is low availability.

Foxy-Stoat_3

If your trying to work out your current property value then call your lender and ask them what they think the current value is.

Do a quick search of similar properties in your area that have sold and are for sale to get a feel of where the value should be.

betmunch

Depending on your lender you might be able to request (at your cost) a physical valuation.

This will update their records with the current valuation whether it is higher or lower than the computer generated one

lucie_1985

Wherever there is additional borrowing a physical valuation will be undertaken by a surveyor, this is for Nationwide at least.