Buy-to-let - Property valued less by valuer

KennyH1

Backstory - My wife and her sister own a flat and myself and my wife are looking to buy out my sister-in-law and rent out the property. We have agreed with my sister-in-law that we would buy her half of the outstanding mortgage and we have has the flat valued recently at higher than the outstanding mortgage. We also have a 25% deposit for a buy-to-let mortgage.

We are in the process of re-mortgaging with a new lender but the flat value from the valuer has come back as less than what we valued the flat as therefore are application has been stopped.

What are our options from here?

ritz55

Is the value the same as what your purchasing the property for? It's very normal for the valuation to come back with this rather than the value of the property.

KennyH1

ritz55 wrote: »

Is the value the same as what your purchasing the property for? It's very normal for the valuation to come back with this rather than the value of the property.

No less. Natwest wont tell me the value that it has come back at, just said it does not meet their criteria.

Let_Us_See

KennyH1 wrote: »

Backstory - My wife and her sister own a flat and myself and my wife are looking to buy out my sister-in-law and rent out the property. We have agreed with my sister-in-law that we would buy her half of the outstanding mortgage and we have has the flat valued recently at higher than the outstanding mortgage. We also have a 25% deposit for a buy-to-let mortgage.

We are in the process of re-mortgaging with a new lender but the flat value from the valuer has come back as less than what we valued the flat as therefore are application has been stopped.

What are our options from here?

I am glad someone understood the OP enough to respond!

somethingcorporate

This sounds very odd. You should go and talk to a broker - you may need to use a different lender although be warned, you may have the same issues elsewhere.

Perhaps you have over-valued the property?

KennyH1

somethingcorporate wrote: »

This sounds very odd. You should go and talk to a broker - you may need to use a different lender although be warned, you may have the same issues elsewhere.

Perhaps you have over-valued the property?

We have a market appraisal form Connells stating an asking price of £155k and accepting anything around £140K. The current mortgage is £142k. We have £35k to use as a 25% deposit / equity for a buy-to-let mortgage.

Connells also are the valuer for Natwest and have valued the flat much lower.

TrickyDicky101

Sounds like you are comparing an EA price to a surveyor price (for mortgage purposes) - albeit nominally from the same company. It's not necessarily surprising the two don't agree. Have you got any comparables to compare to eg similar property in the vicinity sold within the last 3 months?

KennyH1

TrickyDicky101 wrote: »

Sounds like you are comparing an EA price to a surveyor price (for mortgage purposes) - albeit nominally from the same company. It's not necessarily surprising the two don't agree. Have you got any comparables to compare to eg similar property in the vicinity sold within the last 3 months?

There is a smaller property in the same block under offer at the moment. Don't know the offer price but was advertised at over £150k which is similar to what we were told for ours. I assume (I know I shouldn't), that the offer value is around £140-145k.

There are several flats in adjacent buildings that has sold around the same mark recently as well.

Thrugelmir

What's the prospective rental income?

KennyH1

Thrugelmir wrote: »

What's the prospective rental income?

£850pcm. WE know this as we have has the flat rented out for the last year with mortgage providers permission.

We have passed all the eligibility tests and its just the valuation that has scuppered everything and I don't know where we go from here.

sam2015_2

KennyH1 wrote: »

No less. Natwest wont tell me the value that it has come back at, just said it does not meet their criteria.

What is their criteria that you haven't met. Is that the property value, rental income, LTV or something else all together.
Can you not get a copy of the valuation report to see what the figures are and see whether you can appeal.