BTL Remortgage Valuation - NatWest

mane1034

I applied for BTL remortgage with NatWest for 1 bedroom flat and waiting for valuation.

My issue is there is one direct comparable 'two bedroom' flat available in my block. This is a shared ownership flat and has been valued by RICS surveyor at full market value of 165K. I have been told today by my neighbour it was sold on the day it came to market. I suspect it was undervalued but my neighbour was looking for quick sale and the fact he had only 25% shares in it.

For my 1 bedroom flat, I put 150K full market value in mortgage application after discussing with three different local estate agents. I own 100% shares of my flat.

The only other difference b/w these two flats is I have a private garden.

I am concerned my flat will be valued lower due to above very recent sale?


Back in Q3 2101, My flat was valued 135K by RICS surveyor and I have a report for this valuation. If I use this valuation figure in Halifax or Nationwide Index calculator and provide this to surveyor as comparable will it be considered?

Or surveyor does not bother for any kind of evidence/comparable provided by vendor?


Thanks for all help/suggestions in advance...

amnblog

The surveyor is not interested in any view from you. He or she is contractor by the lender to protect their interests based on his/her knowledge of the local market.

If you don't like what they come up with you can use your own research of local properties to challenge their response - but don't assume you will change their mind.

mane1034

I can see your point..... Thanks

I will simply wait for valuation outcome then.

mane1034

If the value is lower, will they reject my application altogether?

amnblog

They will tend to offer without the bounds of any reduced valuation.

kingstreet

Don't forget there are two valuations being done.

The capital value, on which you can't borrow more than 75% and the rental income value, which must be able to support the mortgage using a 125%/5.5% rental cover calculation.

If either are lower, the amount you will be offered may be less than the amount applied for.

mane1034

Thanks....

I think then I should be fine I can manage 10% to 15% reduction as long as they can offer at reduced valuation.

Will that mean a new illustration will be issued and have to resubmit revised application?

kingstreet

mane1034 wrote: »

Thanks....

I think then I should be fine I can manage 10% to 15% reduction as long as they can offer at reduced valuation.

Will that mean a new illustration will be issued and have to resubmit revised application?

A new illustration should be done by whoever advised you, but no new application is required.

mane1034

Valuation came back.

mane1034

Valuation came back.

It is undervalued around 3%. So total 5K less than asking.

What would be the next process on NatWest side? Could they offer the requested loan amount or reduced it ?