Scottish System Home Report Valuation well below expected how to challenge?

oliveoil54

Money Saving Expert Forum Post

Am in Scotland on Carlisle Border. Just received our home report and the valuation is nearly £10,000 below what we expected. Both Estate Agents Valuations were exactly the same, and tallied with what we had expected. However given the original purchase cost, plus the cost of the added single storey kitchen/dining/living extension which has increased house size by approximately 50%, also our 40x20 ft 2 storey garage min 4 car garage. We now find ourselves in negative equity.
We own a Solid Sandstone 2 bed detached gate lodge in a rural area on a country estate . There are other lodges on the estate but differ greatly from the size and detail of ours, plus ours is the only one not listed. 2 of the lodges were sold a few years ago but were in great need of renovation so we’re sold quite cheaply. So we are unable to use a comparable example to enquire why the value is so much lower than expected.

This has a huge knock on effect on the house we wish to purchase which already has 2 offers, but they had accepted ours, but now we will almost certainly be short in our calculations. We are moving to a new area to be near our daughter so we can have help with my husband’s dementia. The properties on her small estate don’t come on the market often and this one is ideal in every way.

The Scottish Home Report marks properties out of a score of 3
1 - needs nothing doing, 2 x requires some improvement but not essential or urgent, 3 - Urgently need doing.
The only real down point I can see on the home report is that we have localised damp in the inner and outer walls, and on certain of the floors, but they don’t indicate where, so it reads like the whole house has localised damp in walls and floors. I have questioned this because I’m reasonably certain that the new extension which is approx 50% of the property won’t have any, and the garage definitely shouldn’t have any either.
These have all been scored level 2 with the recommendation of getting a specialist damp and timber report done. The Surveyor told me that the damp was very sporadic and he thought it could be caused by fallen plaster or rubble providing a bridge. We live in a cottage built in 1900 with 20in thick Sandstone walls with dressed quoins at each corner, and appreciate that there will be occasional damp with a property of this age and character. Especially given that we have double glazing and fitted carpets throughout, and 4 of the walls have exposed Sandstone for a decorative effect.

An injection damp proof course was done over 30 years ago long before we bought this house but the guarantee has expired. There is also still a slate damp proof course still visible. The house is predominately limestone pointed but has been sporadically repointed with cement again long before we purchased it. Our plan was always to rectify this but ill health and the urgent need to move has now taken priority.

What I would like to ask advice on, is how can we challenge this valuation? Especially as I’ve been advised that the Report valuation in Scotland is virtually untouchable and we have no comparisons to use. I’d really like to know how he has arrived at such a low figure?

I asked the Surveyor if there was anything we should do to improve the Report - this was before we’d actually seen it. He said there was nothing. As we’d already discussed the damp, he suggested that we may want to pay ourselves for a specialist damp and timber report, to show any prospective buyers. We are considering this but from research and previous experience with our son’s 18th C Sandstone cottage in Buxton, I do not want someone just coming in checking a few damp meter levels (which is essentially what the Home Report Surveyor did) and saying there is damp through out! Possibly suggesting yet another injection damp proof course! If they are any good why hasn’t the original one worked?

Can anyone offer any advice on whether getting a Specialist Report done would be effective and if so does anyone know of anyone reputable in our area. I’m prepared to also pay travel expenses to get someone knowledgable with this type of of older Solid stone house house?
I’d be extremely grateful for any advice or recommendations.
Sorry in advance for such a long post.

Pixie5740

oliveoil54 wrote: »

Money Saving Expert Forum Post

Am in Scotland on Carlisle Border. Just received our home report and the valuation is nearly £10,000 below what we expected. Both Estate Agents Valuations were exactly the same, and tallied with what we had expected. However given the original purchase cost, plus the cost of the added single storey kitchen/dining/living extension which has increased house size by approximately 50%, also our 40x20 ft 2 storey garage min 4 car garage. We now find ourselves in negative equity.
We own a Solid Sandstone 2 bed detached gate lodge in a rural area on a country estate . There are other lodges on the estate but differ greatly from the size and detail of ours, plus ours is the only one not listed. 2 of the lodges were sold a few years ago but were in great need of renovation so we’re sold quite cheaply. So we are unable to use a comparable example to enquire why the value is so much lower than expected.

This has a huge knock on effect on the house we wish to purchase which already has 2 offers, but they had accepted ours, but now we will almost certainly be short in our calculations. We are moving to a new area to be near our daughter so we can have help with my husband’s dementia. The properties on her small estate don’t come on the market often and this one is ideal in every way.

The Scottish Home Report marks properties out of a score of 3
1 - needs nothing doing, 2 x requires some improvement but not essential or urgent, 3 - Urgently need doing.
The only real down point I can see on the home report is that we have localised damp in the inner and outer walls, and on certain of the floors, but they don’t indicate where, so it reads like the whole house has localised damp in walls and floors. I have questioned this because I’m reasonably certain that the new extension which is approx 50% of the property won’t have any, and the garage definitely shouldn’t have any either.
These have all been scored level 2 with the recommendation of getting a specialist damp and timber report done. The Surveyor told me that the damp was very sporadic and he thought it could be caused by fallen plaster or rubble providing a bridge. We live in a cottage built in 1900 with 20in thick Sandstone walls with dressed quoins at each corner, and appreciate that there will be occasional damp with a property of this age and character. Especially given that we have double glazing and fitted carpets throughout, and 4 of the walls have exposed Sandstone for a decorative effect.

An injection damp proof course was done over 30 years ago long before we bought this house but the guarantee has expired. There is also still a slate damp proof course still visible. The house is predominately limestone pointed but has been sporadically repointed with cement again long before we purchased it. Our plan was always to rectify this but ill health and the urgent need to move has now taken priority.

What I would like to ask advice on, is how can we challenge this valuation? Especially as I’ve been advised that the Report valuation in Scotland is virtually untouchable and we have no comparisons to use. I’d really like to know how he has arrived at such a low figure?

I asked the Surveyor if there was anything we should do to improve the Report - this was before we’d actually seen it. He said there was nothing. As we’d already discussed the damp, he suggested that we may want to pay ourselves for a specialist damp and timber report, to show any prospective buyers. We are considering this but from research and previous experience with our son’s 18th C Sandstone cottage in Buxton, I do not want someone just coming in checking a few damp meter levels (which is essentially what the Home Report Surveyor did) and saying there is damp through out! Possibly suggesting yet another injection damp proof course! If they are any good why hasn’t the original one worked?

Can anyone offer any advice on whether getting a Specialist Report done would be effective and if so does anyone know of anyone reputable in our area. I’m prepared to also pay travel expenses to get someone knowledgable with this type of of older Solid stone house house?
I’d be extremely grateful for any advice or recommendations.
Sorry in advance for such a long post.

Ask another surveyor to provide a Home Report. Specialist reports might put prospective buyer's minds at ease but they won't alter the value on the Home Report which is the valuation (or near as damn it) mortgage lenders will use.

That said, there's nothing stopping you from rejecting offers that are less that you would like.

missile

You choose who provides the home report. Choose another provider, your solicitor or estate agent should guide you. It seems your property is unusual and could be difficult to value.

Valuation is only one persons estimate of the value and in Scotland properties usually sell for more and sometimes much more than valuation.

Crashy_Time

Interest rates are rising, Brexit is looming, and no one really knows the knock on effects it will have, valuations will be ultra cautious now IMO.

ellie99

missile wrote: »

Valuation is only one persons estimate of the value and in Scotland properties usually sell for more and sometimes much more than valuation.

I wouldn't rely on this OP. My family is currently selling and buying in the same area as you are selling. The same surveyor did both home reports, and with my knowledge of local house prices, I'd say they were both well priced, perhaps even on the high side. Same comments on localized damp (didn't say where) in the 1860s cottage.

BUT, the solicitors have told us that properties are selling below the home report valuation in this area.
We're selling £10k below, and buying £5k below, and everyone is happy with that.

Properties may be selling for much more in some parts of Scotland, but it's not the whole country. I wonder if rural is different than city?

davidmcn

ellie99 wrote: »

Properties may be selling for much more in some parts of Scotland, but it's not the whole country. I wonder if rural is different than city?

There are many different markets depending on the location (and type of property), but I certainly wouldn't say that the national average was to sell for more than the HR value. Rural areas are usually more slow-moving and unlikely to have the closing dates which encourage bids above the HR value.

ESPC data here suggesting average sale price (across the whole of East Central Scotland, which includes the hotspots in and around Edinburgh) is 105% of HR value.

oliveoil54

missile wrote: »

You choose who provides the home report. Choose another provider, your solicitor or estate agent should guide you. It seems your property is unusual and could be difficult to value.

Valuation is only one persons estimate of the value and in Scotland properties usually sell for more and sometimes much more than valuation.

Only if the buyers have cash the Lenders will not lend past the Valuation! That used to be the case with Offers over but in today’s climate it would appear in numerous areas homes are selling for less.

oliveoil54

ellie99 wrote: »

I wouldn't rely on this OP. My family is currently selling and buying in the same area as you are selling. The same surveyor did both home reports, and with my knowledge of local house prices, I'd say they were both well priced, perhaps even on the high side. Same comments on localized damp (didn't say where) in the 1860s cottage.

BUT, the solicitors have told us that properties are selling below the home report valuation in this area.
We're selling £10k below, and buying £5k below, and everyone is happy with that.

Properties may be selling for much more in some parts of Scotland, but it's not the whole country. I wonder if rural is different than city?

Agree dependant on the area, Rural properties are much harder to sell. Have had a number of people at my property today as I’m selling numerous items ready for the move. Most people couldn’t get over how low the valuation was, for the type of property.
The Surveyor explained that because my property is very difficult to value with no comparable properties nearby, they are then instructed to look at anything remotely similar in sq meterage in a nearby town area or community and compare the selling prices. If they are classed as over valuing the Government penalises them when revued. He did agree to increase the price by the princely sum of £5,000 but no more. So we are still in negative equity!

Thank you for all your comments.

Crashy_Time

Challenging the valuation is probably more stress than just taking what you can get for it as soon as possible IMO.