Mortgage refused on valuation

Tracytop81

I have challenged Natwest on the decision, who have referred it back (not sure if they meant to an underwriter or the person who conducted the valuation) and been told to wait 48hrs to see if there is any change. Fingers crossed, otherwise I will be starting again with a broker.

teneighty

Tracytop81 wrote: »

Hi, property has 4 bath/shower rooms, none are ensuite. It was always 1 house although has had an extension at some point providing extra room downstairs, and has had the attic converted to create the 5th and 6th bedrooms.

I will get hold of a broker tomorrow and go from there.

Natwest said that the valuation came back as declined as there was limited demand for this type of property in the immediate residential area? Sorry it was an over the phone conversation today and that's the points I remember.

Thanks for everyone's comments!

What is the purchase price compared with typical price of the smaller terraced houses around?

I read it as the valuer/surveyor saying the large house will have limited appeal and therefore may not meet the lenders criteria because of the area. I suspect few people would want to buy an possibly expensive 6 bed house which is surrounded by cheap terraced houses.

steveoz

How did they value it? I've noticed a tendency to actually just zoopla and the like with mortgage companies, it could be the value they have given is not the true value of the property.

When we last remortgaged, the mortgage company wouldn't give us the LTV deal we wanted, they went off of their 'own' system, which to me, literally just meant the typical online sites. The problem was our house was last sold a decade ago when we bought it and bought at significantly less than the properties were worth when we re-mortgaged. And the house next door which is in worse condition and smaller was valued at MORE on such sites due to it changing hands every 12 months and them having an accurate record of it's sale price each time.

Of course, if they actually came out and saw the property you can ignore this comment

kingstreet

It's a purchase steve.

Drive-bys and indexed valuations are often used for low-LTV remortgage business, but are hardly ever used for purchase cases.

steveoz

Ahh ok sorry, working at the same time as typing Thanks for the info though!

Tracytop81

Hi teneighty I think you have hit the nail on the head, it is about 50k-75k above the other properties nearby, not sure where this leaves me or if other banks values will have a similar thinking?

Steveoz - the estate agent stated that they had booked a valuation, so I am assuming they went in the property.

I have asked Natwest for a copy of the report which I hope they give me so that I can give it to a broker who might know more.

Thanks

Oh and it was cheap as it was an auction property - I know zoopla is not reliable but it was got for 70k below the zoopla estimate

Thrugelmir

Tracytop81 wrote: »

Oh and it was cheap as it was an auction property - I know zoopla is not reliable but it was got for 70k below the zoopla estimate

Sounds like a repossessed HMO.

Zoopla is pants. Improve your own property and you add thousands to it's value online.

Tracytop81

I believe at some point it was used as a care home however was converted to residential back in 2008, and I believe this is what it has been since then.

bellaboo86

I think another issue is that people who want a 6 bed house won't want to be near terraces (nothing against them personally), they will want to be near other detached 6 bed houses that all have drives etc.

Tracytop81

Any ideas on how to get around the problem, the house is in the exact location I need to be near friends and family, and I wouldn't be able to afford a similar property else where. Or want to move further afield anyway. This is the first time I've ever bought a house, always rented before