Remortgage, valuing my property?

Pa_Ja

Looking to remortgage after 3yrs of buying my first property.
Lenders request a valuation, is zoopla the best guide for this? Should u go with with the estimate under your individual property or should you take the street average for similar houses?

Thanks

muhandis

I'd do as my broker suggested with a recent remortgage - go with a very optimistic figure!

The bank will value it at the lower of the survey that they instruct and the valuation that you have provided, so there's nothing to lose.

If (like in my case) they value it at the absurdly high number you pulled out of the air, that might put you in a lower LTV band with a potentially lower interest rate.

Pa_Ja wrote: »

Looking to remortgage after 3yrs of buying my first property.
Lenders request a valuation, is zoopla the best guide for this? Should u go with with the estimate under your individual property or should you take the street average for similar houses?
Thanks

Pa_Ja

Thanks for reply

JayCeeEssex

At the end of the day, when you remortgage you are giving your estimated valuation of your home. We all believe that our homes are worth more than they probably will fetch on the open market, but that is fine, ultimately though it is only worth what someone is prepared to pay for it!
I tell my clients NOT to look at Zoopla as their algorithms for valuation can put you 10's of thousands of pounds away from a true valuation.
What I do for my clients is research all similar properties that have been sold in the last 6-12 months within the postcode area and then calculate the average sold price, not the asking price. In other words pretty much the same way that the valuer will work out the property price.
It is foolish to over value your property, valuers are not stupid and they will see what you are trying to achieve and will still value it at the true value!
Spend a bit of time, research properly and use a realistic figure!

Andysandy

As the poster above says, give it a nice optimistic value, wearing your best pair of rose-tinted glasses.

Whatever value you assign to the property, the valuer will value it at X. If X is higher than your value Y, the bank will only value it at Y.

I do the same when it's time to remo my btl properties. 2/4 times I'm surprised by the valuation (imho un-achievable in a sale) returned by the surveyor and end up being able to release more equity than I planned for!