will damp scupper our bank valuation?

luberluber

Hi all,

I'm placing a second charge against an existing owned property, and the charge is conditional on passing a basic valuation for the lender.

It's a 2-bed period conversion flat with very bad damp along one wall of the living room, due to historic bad guttering and pointing around a small flat roof and external side walls. This is currently being fixed externally, however the internal wall isn't ready for re-plastering yet. So when the valuer does visit, the internal wall in question will still appear riddled with damp.

The affected area is fairly small in comparison to the rest of the flat (which is in good order) and it's certainly not rising damp or something structural. We are second floor, not ground or top floor FYI.

So what should I do: get the old internal plaster hacked off now before the valuer visits? Or just leave as is, do all internal work once the external works are fixed, but just explain the situation to the valuer when he visits? I just don't want them deeming it an 'unsuitable security' due to some localised damp (bad as it looks) that is already being addressed !

Thanks in advance

financegeek

It will come down to what the surveyor says and whether he deems it suitable risk. Most surveyors at the moment (understandably) seem to be very cautious both in terms of value and risk aversion, so he'll no doubt penalise the property because of it.

As the surveyor will not know the cause of the damp (especially if this has now been resolved) they may insist that a damp course is completed before he'll place a value on the property.

can you afford to wait until the issue has been rectified both externally and internally?

luberluber

Thanks - we can't really wait until the issue is resolved in terms of the financing, however it is up to me whether I expedite this by starting the re-plastering inside (with possible damp proof course) since the outside should be finished soon.

The question is whether the valuer will just reduce the value slightly reflecting the works required, or actually refuse to place a value full stop. I was hoping as it's clearly not rising damp or anything structural that he'll go for the former and knock a few thousand off to reflect the internal re-plastering and re-decoration needed - am I being optimistic?

pinkteapot

When we remortgaged, they didn't even come round. The valuation consisted of them seeing the sold price we'd paid a couple of years earlier online and saying "yep, fine". We paid the valuation fee for that! :eek:

Some valuations are also done with a drive-by if the property looks OK externally. Are the ongoing external repairs obvious?

If they do set foot inside, a valuation is usually a pretty cursory look around. Bookcase in front of the stain?

You'd be unlucky to get a surveyor doing a simple bank valuation who looks at the place too closely. If they did and if the cause of the damp has been addressed and you just need to redecorate, I'd leave it and just explain if they notice. Bit of replastering and repainting being required won't make much difference, unless you're getting very close to your max LTV on borrowing.

All of the above is why anyone buying a property should upgrade from the bank valuation to a Homebuyers.