Disputing Nationwides house value

ganderson1804

We are looking to build an extension on our 3 bed semi property. I called Nationwide this morning to get an idea of what they would lend us.

They will lend (providing affordability is ok) up to 85% LTV.

Our current mortgage balance is £157800. Nationwide place our house price at £203k - £211k.

We live in Aberdeen where house prices are actually much higher and I know that the house is actually worth market value of around £230k (possibly more).

I asked if they would accept a local surveyor providing a more accurate market value and they said possibly but we won’t know if they will accept it until we start an application for the lending.

This results in over 16k of a difference of what we could potentially borrow.

Anyone experienced this and disputed the value they place on your house? I don’t really fancy starting an application if they won’t lend to the house’s full potential.

Thanks

lucie_1985

Is the value that they have given been based purely on their house prices index or have they sent an approved surveyor round? If the former, a surveyor will need to come round who will be Nationwide approved ALTHOUGH as I found, they will have been provided with the house prices index estimate and for us at least their estimate was lo and behold the same as the house prices index estimate.


You won't want to pay for a surveyor yourself as one that is not approved will be disregarded for their purposes so is just a waste of money. The valuation from a surveyor can be contested however it is incredibly rare for it to change, this is because in the event that you did default on your mortgage and the house was repossessed and Nationwide were not able to recover the value that the surveyor had provided the surveyor can be pursued legally by Nationwide. In this way valuations tend to always be on the conservative side.

ACG

Sounds like you have got someone a bit awkward or new - although being north of the border I could be wrong... But I am sure if you submit an application and pay for a valuation (assuming it comes back at £230k) everything should be ok.

Call up again and speak to someone else.

Thrugelmir

Ganderson1804 wrote: »

Anyone experienced this and disputed the value they place on your house? I don’t really fancy starting an application if they won’t lend to the house’s full potential.

Thanks

There's no point in disputing the in house valuation as there's no grounds on which to do so. The property will have to be valued by a surveyor appointed by the lender. Until you make a full application and pay the valuation fees this won't happen.

If you need the property to be worth £230k to release enough equity. Perhaps wait a while longer and pay down more of the existing mortgage to build up further equity to release.

ganderson1804

Hi

Thanks for the replies. The value they have quoted is the house price index. We bought the property 4 years ago and it valued at £205k. The people who did the home report (which included valuation which was accepted by Nationwide) were a local company. We had them back round last summer to re-value the house and give us an estimate on the value the work we are proposing would add.

I'm finding it hard to understand why Nationwide would accept a local surveyors valuation at the time of buying but possibly not for borrowing more! As yet Nationwide have not instructed a valuation on the house.

We have other lending options which I am looking into as well so if Nationwide won't lend what we need then we'll find another route.

I'd love to wait for pay off more to reduce our current LTV and allow us to borrow more but we either extend at a cost of 60k with a monthly increase to us of £350-400 a month or we move house which will over double our mortgage to nearly £2k a month so we will definitely pursue all options on the extension for the time being.

Thanks again for the replies.

somethingcorporate

Could you consider on moving providers altogether?

Have nationwide said they will lend for building your extension? I remember reading (when we were looking to borrow more) that they won't do it for structural work (so worth checking with them).

ganderson1804

Hi

One of our other options is we are fortunate enough the my dad can lend us the money to complete the extension and than we'd look to move lenders and remortgage to repay him.

We chatted our options through tonight and he's basically told us to go ahead and forget the nationwide option and he'll fund it all and we'll remortgage and repay.

We're in a very fortunate position that he's able to help out like this and the only reason we were looking to raise some capital ourselves was to show my dad we don't need it all from him but he's said it unnecessary.

So thanks everyone for your advice - on with the build!