Bank valued down (let out) house by 50k under last re-mortgage valuation

mskadu

Hello all,

Have been a passive and infrequent reader of this forum for a while now. I rarely find a reason to post since most questions already seem to have been answered before I can even ask �� So apologies if this has been asked before (recently). Please feel free to point me to that thread. Now on to my question.

This is about my first home which I had remortgaged at 460k£ two years ago. 5 months after that was done, circumstances forced me to move to a smaller house and I let the house out. In my latest remortgage application (done a week before Xmas), they sent a surveyor around and he returned a revaluation of £410k!

My mortgage advisor has given me the choice of accepting the valuation (drastically changing my LTV) or appealing against the valuation (at cost of £500) or shop around some more (but given the banks will use the standard pack of property surveyors, we run the risk of a repeat).

My question is around the appeal. It requires me to go back with proof of sales of properties within 1 mile radius of my property with my asking valuation. I've already looked at HMRC sold properties data in that area but the problem is that I can't find a sold property in 10 miles radius of the place! In over 5 years! Which is not surprising because the area is opposite a major business park and tenants are readily available.

Back to my predicament, what can I do in this situation?

k3lvc

Out of interest if there's no sold properties within 10 miles at your asking price what makes you think it's still worth £460k now ? You need to compile the evidence and if you can't convince yourself you're not going to convince an appeal

ETA - for the title they've not 'undervalued' your house - they've revised their valuation to what they believe is realistic in the current market

Thrugelmir

Is the valuation a reflection of the fact that it is now a let property. Rather than a family home.

mskadu

Thanks for replies both. My valuation is a 2 year old figure (used in the last re-mortgage of the same property) as mentioned before). And this is assuming no growth in value in those two years.

I acknowledge that this is now a let out home. Would it matter if the size forces only families to be interested?

As for my title, perhaps it should also read "(as compared to) my previous re-mortgage valuation". Reading, where this property is based, is one of the few regions in the immediate vicinity that has had an influx of new companies (other than being added to the cross rail map). Which is why a reduction of valuation by such a large amount over a 2 year-old price is shocking.

davidmcn

How sure are you that the previous valuation was correct? Was it also based on an actual inspection of the property, rather than just a desktop (or drive-by) valuation?

If there's a lack of comparable data then the margins of error become larger.

mskadu

I believe it was a desktop/ drive by evaluation the last time around. But 50k worth of margin?!

DaftyDuck

. Reading, where this property is based....

. ...... the problem is that I can't find a sold property in 10 miles radius of the place! In over 5 years!

Really? You sure?

mskadu

Actually, no. It turns out I was making a small but pivotal mistake in querying the land registry sold house prices list

http://landregistry.data.gov.uk/app/ppd/search

Fixing that has produced a list of about 14+ homes sold this year alone for well over my requested valuation. I have asked my mortgage advisor to confirm. It looks like I just may have a shot.

Fingers crossed!

csgohan4

houses go up as well as down in price. That is a risk everyone takes when they buy a house. Take Northern Ireland for example, masses of negative equity

AnotherJoe

csgohan4 wrote: »

houses go up as well as down in price. That is a risk everyone takes when they buy a house. Take Northern Ireland for example, masses of negative equity

Not in Reading they haven’t over the last 6 or 7 years. . I live just outside and prices have done nothing but rise with Crossrail providing an even biggerr boost for those relatively near the station.

Lunchbox

We had two remortgage valuations a fortnight apart after withdrawing our first application (bank’s fault - long story). The second valuation came in 50k lower than the first. Both were physical valuations, only one comparable property has been sold this year and that was at the higher figure. You could well get a better valuation elsewhere, but look for a mortgage provider that uses a different surveying company to the one you’ve already had.