Advice please - is the value sometimes hugely different to recent sale prices?

Chrysanthemum5

Hi

My husband and his father bought a property 9 years ago on a buy to let mortgage for 137k and they put down a 12k deposit. They bought at the worst possible time and now the houses next door have recently just sold for 126k and 125k.

My husband and I want to apply for a mortgage next year to buy this house by getting a repayment mortgage. I explained to the bank the house prices have dropped significantly and so we would possibly need a new deposit but the lady at hsbc said not necessarily as a house value may be different to house sale prices at the time. Is that correct?

Or are we deffo looking at needing a 12k deposit again as the house has dropped 12k? Eg zoopla is telling me the house next door had a sale price of 126 but value of 138??

Thanks

libf

Sometimes properties are sold low because they want a quick sale or they're sold to family. But most surveyors will use sold prices as part of their valuation. Are you sure these houses are comparable?

Chrysanthemum5

Unfortunately yes they are identical houses to ours in a terrace row and not sold to family or friends. Guess the crash just affected him and his dad very harshly

libf

Only way to know for sure is to get a valuation done by a surveyor.

Chrysanthemum5

Thanks good job I know a few ��

murphster

I'm in a similar situation, so would be glad to know what you find out. I want to rent my current home and move on to a new place. I am worried that the value I gave in the application is more than some similar houses near by have sold for. I wasn't too concerned as the mortgage loan was a lot less i.e. 75 % LTV and knew Natwest would get their loan back, but after reading some of these threads I am really worried about my survey which is next Monday. I would love to know if anybody knows better, and if being a remortgage albeit buy to let is any different than a purchase.

Chrysanthemum5

I know surveyors but don't want to ask as don't want to sound silly or ask them to do it with them thinking I want a freebie

Hopefully this thread will get lots of replies to help us both xx