BtL mortgage rental assessment came back low - any way to "appeal"?

49IM

The valuation/rental assessment for a property I'm trying to buy has come back about 20% lower than I need, and than I think is reasonable. I suspect that the valuer in this case has given me a figure based on family let, but in fact it is in a prime student area and will be let for much more. I very recently was granted a mortgage on an inferior/smaller property which was given a higher rental potential than this one, and recognised as a student let.

Is it ever the case that one can appeal this valuation? The mortgage is with BoI, via the PO.

ACG

You have applied to the wrong lender. Most lenders will assess the rental income based on a family unit rather tan a student/multi let. You need to find a lender who will assess in that way but realistically you are going to be paying higher rates than BoI/PO.

ACG

Also to add, I suspect the post office/BoI would not offer you a Mortgage if they knew it was for a student let - although I could be wrong.

kingstreet

Typically, lenders insist on a property being let on a single Assured Shorthold Tenancy so they tell their contracted surveyors to calculate rental income on that basis.

It sounds like incorrect lender selection.

Is this an HMO?

49IM

ACG wrote: »

Also to add, I suspect the post office/BoI would not offer you a Mortgage if they knew it was for a student let - although I could be wrong.

BoI provided my last mortgage an, though I can't be sure, I think they valued that property as though it were for students. The figure that came back was about 50% above what it would get as a house to a family.

kingstreet wrote: »

Typically, lenders insist on a property being let on a single Assured Shorthold Tenancy so they tell their contracted surveyors to calculate rental income on that basis.

It sounds like incorrect lender selection.

Is this an HMO?

It will be on a single AST, yes. It's not a licensable HMO in my area, it will be three to four bedrooms and two storeys.

ACG

It migh have just been one of those that slipped through?
But I think if you appeal you may find your application is declined. Not the end of the world, but I think I would either alter the loan amount or find a new lender who will use the income for a student let.

49IM

ACG wrote: »

It migh have just been one of those that slipped through?
But I think if you appeal you may find your application is declined. Not the end of the world, but I think I would either alter the loan amount or find a new lender who will use the income for a student let.

Thanks, I have a "case advisor" at the PO who discusses things semi-informally so I'll see what they say. The amount they're willing to lend in consideration of this lower value has been stated and works out to 60.9%, which is a fair bit less than the 75% I was hoping to borrow. About 30k, in fact - unfortunately I don't have that spare, haha.

My broker told me in the past that the valuers are usually "independent", right? And just value upon instruction from various lenders, and it rather depends who you get and what mood they're in.

49IM

An interesting development here - I asked the PO if there was any way I could appeal it considering the circumstances, and had a reply explaining that they do indeed go by "family" rates, as standard. They then went on to say that if I want to appeal, I should furnish them with information on three comparable local houses with Let Agreed, achieving the figure I propose.