Do surveyors give much of an indication of value.

murphster

So I have been worried about the survey valuation of my current home which I want to remortgage to a buy to let then move on. The surveyor came today, he had a quick look around asked a few question about any changes ect. Anyway before he left and after clarifying the agreed price (I know it's a remorgage), I tried to quiz him. He didn't give much away but did say,"if someone is willing to pay a price who was he to disagree". Am I reading to much into this or do people think that was his way of saying it was ok? The house is sound and and I'm only wanting 75% of the agreed price. It's been remortgaged in the past (after end of fixed periods) with no problems.

I'll be glad when this whole ordeal is over.

amnblog

It is smarter to leave and submit an assessment without the input of the owner than to enter into a conversation and potential row as to value.

kingstreet

So you are waiting on a capital valuation and a rental income valuation as well?

murphster

Yea, I had to send of a rental valuation from a lettings agent, I put £465 on my application and the lettings agent suggested £495 on their quote, so I'm hoping that should be fine. I remortgaged this house in 2011 and there was no problem at a value of £85,000, I have valued it this time for £80,000 on my application. I have been worried as a similar house near (2 bedroomed) by sold recently for £67,500, although this looked like vacant possession and in need of some work, I just wondered if that would influence the surveyor's valuation, a three bedroomed sold for £89,000, there just seems to be so much variation. Does the surveyor do a rental value as well.

This whole process is turning me grey.

amnblog

Yes, the valuer will also state an estimated market value for rental.

kingstreet

Yes. The surveyor does both.

Surveyors use "comparables", the recent (120 days) sold/let prices of similar property in the vicinity (0.5 miles or less) from sites like this;-

http://www.rightmove.co.uk/house-prices.html

murphster

Thanks, that is what's worrying me, rental value will be fine, its the capital value that is concerning me, going on that previous sale price it is way over valued, do surveyor's have access to information about repossession sales, surely they can tell a house that was sold in a rush so to speak.

kingstreet

Repossessions, estate sales etc don't go on the public figures as the Land Reg doesn't want undervalue sales skewing the figures.

murphster

O dear! That means there is a big difference in two and three bedroomed houses, 21,500 or 24%. Is that likely.

uncreative

kingstreet wrote: »

Repossessions, estate sales etc don't go on the public figures as the Land Reg doesn't want undervalue sales skewing the figures.

We bought a BTL flat that was a repossession and the value that we paid is on rightmove. It was a 2 bed ground floor and the 2 bed on the second floor (that is maybe 10% larger floor area max) was sold 2 months later for literally double.

murphster

That gives me a bit of reassurance. I just thought if the surveyor was going to down value it, he would simply have said he can't say anything, it would have to go back to the lenders, but his turn of phrase "who are we to argue" might be his way of unofficially saying the value was OK and not to worry. There is another two bedroom in my street that sold for 85,000 but this was about three years ago, still post credit crunch but the one round the corner is more recent. I really can't understand how than can such difference in selling price