Right to buy valuation

wozzza72

Hi

We are just going though the proocess of 'Right To Buy' from the council, they have agreed we are eligable. I just have a question, do they send round their own valaution people to see the house etc or do they just send a figure though based on the current market? I understand they always under value the property as well?

FtbDreaming

They send a valuer. You tell the valuer all the improvements you have made and they'll value it accordingly. They then tell council who will calculate discount and send you an offer price

wozzza72

Thanks for the info, much appreciated. Do they undervalue the property as I have been told?

FtbDreaming

I dont think they undervalue if I'm honest... in my street there were 3 other houses listed on zoopla for 69k 69k and 65k so i told the surveyor that was what i was expecting. It came back at £82,000 with £9,000 discount so definitely not undervalued. 

wozzza72

Jeepers!!!! Ok thanksvery much for your help.

FtbDreaming

When the bank valued for the mortgage they only priced it at £80k so i had to change the mortgage application to make up for the shortfall.

theselfishaltruist

wozzza72 said:

Thanks for the info, much appreciated. Do they undervalue the property as I have been told?

In my case, they sent a council employee around who measured the walls and looked at the garden, and they made a valuation. They have no incentive to undervalue so why would do you think that?? If they did do that, that would be great for you as you are buying a house cheaper than it's actually worth so hope they do.
They do however have an incentive overvalue, as they don't want to sell their stock for a discount but are forced to by central government so I think it's more likely to be an overvaluation. I'd consider that when the valuation comes in.
If you disagree with their valuation, then you have to tell them and arrange (and pay) for a government district valuer, who's decision is final. 

restless6

I disagreed with the valuation and requested the district valuer - this was free and I don’t have to pay for the re valuation .

theselfishaltruist

For free? Who paid him/her (out of interest)?

lincroft1710

The District Valuer's office is part of the VOA  (an Agency of HMRC), so he is paid by HMRC.

flyingv

wozzza72 said:

Thanks for the info, much appreciated. Do they undervalue the property as I have been told?

They certainly didn't when I bought my flat in London a couple of years ago, in fact it was at the top end of the market value for flats like mine.  And yes, a valuer came to assess the property.