Remortgage valuation query

Steve050607

Hi everyone.
Me and my partner are going through our first remortgage after two years in a new build home.
The mortgage is with Halifax, and we’re looking to borrow an extra 10k to cover an unsecured loan we had from our old mortgage with Landmark.

The valuation has been booked in for next week.
We bought the property from a very popular and award winning builder for 213k two years ago.
The builder is still in the area only a few hundred yards away, selling the exact same home for 228k today.

On this basis we valued our home at 225k, and our mortgage advisor said that the valuation needs to come in at this to obtain the rates we have discussed.

My question is would the surveyor know that homes are being sold at this price and should I make them aware of it? It seems like a big jump in valuation to me over two years, but I’m hoping that it comes in at this price for obvious reasons.

Kind Regards Steve

kingstreet

A surveyor will look at comparables, the recent (last four months) sold prices of similar property in the vicinity (upto 0.5 miles).

Check your postcode here;-

https://www.rightmove.co.uk/house-prices.html

Steve050607

Thank you for your reply. I did think this myself, I checked the postcode on the link you sent. The last home to sell was next door in October for 218k three bed detached similar to ours.

Do surveyors tend to down value homes regularly? Or is it a case of somewhere near when it comes to remortgaging??

Thrugelmir

Steve050607 wrote: »

The builder is still in the area only a few hundred yards away, selling the exact same home for 228k today.

Any incentives on offer from the builder on the new properties ?

Steve050607

The builder lets you choose the interior decor from kitchen to bathroom tiles etc.
Sometimes stamp duty will be paid or a 5k incentive for workers for the nhs etc.

jaxkesa

Isn't there usually a price premium with new builds when they are first purchased to take into account?

All the new builds around me have sold for less than the initial purchase price (new £300k, selling for ~£285k - ~£290k) after 2-3 years.

[Deleted User]

Always an issue with new builds on sites where the building doesnt stop. Essentially comes down to:
Why would someone buy yours for £225k when they could get a brand new one for £228k with choosing own style and potentially cash incentives from the builder?

If there is no real answer to this question I would expect the surveyor to downvalue the property to a lower level. Seems like the broker picked a figure to get a rate rather than picking a rate from a realistic valuation

foxy-stoat

Did Halifax not give you a valuation based on index linking there and then?

Halifax's computer said my place went down in value by £15,000 in 2 years and I had to pay for a valuation if I wanted to dispute that.

kingstreet

It depends where it is.

We've had one development in Milton Keynes (MK10) run for seven years where we see the previously owned properties go on the market and sell at/close to the newbuild prices. The valuations for these at sale and remortgage have been upheld by the surveyors.

You may want to use the Nationwide house price calculator;-

https://www.nationwide.co.uk/about/house-price-index/house-price-calculator

pay £20 for a desktop valuation from HomeTrack;-

https://www.hometrack.com/uk/products/market-intelligence/property-valuation-report/

gather further comparables from a wider area, look at EA marketing prices and try to come up with a realistic estimated value that way.

kingstreet

foxy-stoat wrote: »

Did Halifax not give you a valuation based on index linking there and then?

Halifax's computer said my place went down in value by £15,000 in 2 years and I had to pay for a valuation if I wanted to dispute that.

I can't figure out from the OP if they are Halifax borrowers doing a product transfer and further advance or if they are with someone else remortgaging to Halifax.

OP - if you are an existing Halifax borrower, provide a broker with your account number and they can do an enquiry and tell you the current Halifax indexed valuation.

Steve050607

Thank you for the replies I am currently with accord and we are looking to remortgage with Halifax.

When Accord sent us our renewal options, they valued our home at 227k
This was another reason we valued ours on the high side.