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Second charge equity loan
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john2k
Posts: 11 Forumite
I took out a equity loan in the form of a second charge when purchasing my property 9 years ago. I've paid off my mortgage and now in the process of paying off the equity loan. The process was to get a valuation done which I had done by a major estate agent and submitted the valuation to the equity provider. The valuation also took into account houses sold in same street within the last year. But the equity loan provider came back saying they reject the valuation and instead proposed a value with £20k more which is based on another property that sold 1 and half years ago and is although same amount of bedrooms but it has larger garden and more land on the side. So i've send them 2 links to properties on the open market on the same street exact same size for below the value that my valuation report did. This clearly shows that my estate agents valuation is correct.
It seems they are just over-inflating the price to get more. I'm disputing their proposed valuation but wanted to know how are these companies regulated? how can they just make up a price like that. a full 20k extra is a huge difference. If it was a difference of 5-10k then you can say yes difference of opinion but to be a huge 20k difference just seems ridiculous.
It seems they are just over-inflating the price to get more. I'm disputing their proposed valuation but wanted to know how are these companies regulated? how can they just make up a price like that. a full 20k extra is a huge difference. If it was a difference of 5-10k then you can say yes difference of opinion but to be a huge 20k difference just seems ridiculous.
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Comments
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What sort of entity is the "equity provider"? If it's the developer then the terms would have been in an agreement upon which you would (almost certainly) have got legal advice at the time you bought.
In any event, there'll be terms setting out what the method of valuation is meant to be - so what does it say?
The asking prices for properties which haven't actually sold don't mean much - valuations are mainly based on completed sales.0 -
Can't speak for developer SE schemes pre-HTB but now I'd expect you to have to produce a valuation by an RICS surveyor, not an EA's marketing appraisal.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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What sort of entity is the "equity provider"? If it's the developer then the terms would have been in an agreement upon which you would (almost certainly) have got legal advice at the time you bought.
In any event, there'll be terms setting out what the method of valuation is meant to be - so what does it say?
The asking prices for properties which haven't actually sold don't mean much - valuations are mainly based on completed sales.
It's a developer. The terms and the policy of valuation states that I must get a valuation done by a estate agent that I am not affiliated to and send over the valuation to them for their consideration. If they are happy with the valuation, they will send a redemption statement with final value. But they replied saying they reject it because another house on the similar street sold over a year and a half ago for 20k more. But i replied saying but few doors away my neighbours house sold for 5k under the valuation I gave them and this was less than a year ago and that property is also exact same amount of bedrooms and has a bigger garden. But seem to be more interested in comparing with something that sold 1 and half years ago because that works to their advantage. The most recent sold house is this few doors away neighbours. And currently on the market there are two properties 1 exactly the same as my valuation and the other is 15k cheaper than my valuation.0 -
It's a developer. The terms and the policy of valuation states that I must get a valuation done by a estate agent that I am not affiliated to and send over the valuation to them for their consideration. If they are happy with the valuation, they will send a redemption statement with final value.0
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It says: If the valuation is disputed and we cannot reach agreement on the current market value of your property, we are entitled to follow the procedure set out in your Equity Loan documents. This may include:
- Obtaining at your expense three independent valuations of your property to establish an independent market value.0 -
It says: If the valuation is disputed and we cannot reach agreement on the current market value of your property, we are entitled to follow the procedure set out in your Equity Loan documents. This may include:
- Obtaining at your expense three independent valuations of your property to establish an independent market value.0 -
Ok, I think you're quoting from some sort of informal summary of the terms. What is the procedure set out in your equity loan documents?
Don't have the actual document with me at the moment but will have a look. But the quote i gave above is from the form and procedure document. Also, the Equity loan has been transferred to another company too. It's not the original developer company. Its basically a company that has formed to take over these equity loans from multiple developers0 -
Don't have the actual document with me at the moment but will have a look. But the quote i gave above is from the form and procedure document. Also, the Equity loan has been transferred to another company too. It's not the original developer company. Its basically a company that has formed to take over these equity loans from multiple developers0
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