Buy-to-let - Property valued less by valuer

PierremontQuaker03

This has happened to me before on a BTL mortgage - mortgage valuers seem to be very conservative when valuing a property these days - presumably because of the housing boom - so I have learned my lesson - my logic is - what you think the value of the house is and knock 10% off - just to be safe.
There is little you can do, other than try a different lender, but every time you do this you are paying a fee - so its an awful situation to be in.

Thrugelmir

KennyH1 wrote: »

£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.

Does this meet the lenders requirements in relation to the amount you wish to borrow.

jamei305

KennyH1 wrote: »

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.

Sounds like you have had it valued at "around £140k" which is what the agent claimed the likely sale price would be - the asking price is not the value, especially if the agent is expecting it to go for less.

If the value is around £140k and the mortgage £142k then I am not surprised at the decline.

KennyH1

jamei305 wrote: »

Sounds like you have had it valued at "around £140k" which is what the agent claimed the likely sale price would be - the asking price is not the value, especially if the agent is expecting it to go for less.

If the value is around £140k and the mortgage £142k then I am not surprised at the decline.

The current mortgage is £142 but we have a £35k deposit as required for BTL so the mortgage will only be £107k.

We have met all the other criteria in terms of our income, the rental income etc. We were just waiting for the valuation and then we would complete everything. Natwest wont tell me what the value has come back as, just that it doesn't meet their requirements.