Valunation - Advise please re surveyor

Sophie8916

Thrugelmir said:

Sophie8916 said:

Ramouth said:

I understood it as the valuer made those comments to the OP in person rather than in the report.  I think the OP is concerned about what the report will say on the basis of this but has not actually seen it or heard from their buyer about it yet.  

Is this correct OP?  If so try not to worry too much until you have to.  If you are confident about the value based on other sales in your block then it may just be a case of the valuer not having done enough research yet. 

That’s right - thanks I was concerned at what he meant by “it’s at the high end but you may be lucky and scrape through” my buyer is a BTL - will this make things a bit more lenient?

BTL is subject to different criteria than residential. Not just the market value of the property. 

Have PMd you

Sophie8916

Update for you all, he’s downvalued it by 15k and passed his report onto the lender.

His valuation is grossly inaccurate so will see what happens 

Thrugelmir

Sophie8916 said:

Update for you all, he’s downvalued it by 15k and passed his report onto the lender.

His valuation is grossly inaccurate so will see what happens 

The remaining term on the lease may have influenced his decision. The surveyor is working under the instructions of the lender as to the value in the event of a firesale. 

Sophie8916

Thrugelmir said:

Sophie8916 said:

Update for you all, he’s downvalued it by 15k and passed his report onto the lender.

His valuation is grossly inaccurate so will see what happens 

The remaining term on the lease may have influenced his decision. The surveyor is working under the instructions of the lender as to the value in the event of a firesale. 

I doubt it, others with the same lease amount in the block (small block) all sold and gone through with 185k +, this particular company are apparently notorious for down valuing. The lease isn’t a problem either, as a lot of lenders lend on this lease and the law is changing

kingstreet

Have a look here for recent (last four months) sold prices for similar property in the vicinity (upto half a mile);-

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

as these are the comparables a surveyor will look at to see if your agreed price is justified.

Sophie8916

kingstreet said:

Have a look here for recent (last four months) sold prices for similar property in the vicinity (upto half a mile);-

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

as these are the comparables a surveyor will look at to see if your agreed price is justified.

Thanks, they all come out as the price I sold but he said he won’t tKe local sale prices into consideration as there is no other blocks similar in the village 

kingstreet

Most lenders expect three comparables to support the valuation given.

Different lenders also use different valuation methodologies for different types of business. For example;-

Market Value in present condition (as an investment)

N.B. If an investment basis of valuation is inappropriate, please explain in General Remarks

Market Value with Vacant Possession, taking into account alternative uses including as a single dwelling house but subject to likely local Planning and HMO Regulation constraints, assuming a 180 day marketing period.

Market Value with Vacant Possession, taking into account alternative uses including as a single dwelling house but subject to likely local Planning and HMO Regulation constraints, assuming a 90 day marketing period.

The above are different valuations for the same BTL property on different bases.

Slithery

Sophie8916 said:
...and the law is changing

Incorrect.
There is a chance that the law may change at some so far unspecified point in the future. The government haven't even drafted the legislation yet, let alone trying to get it through parliment. You can't rely on it ever actually happening.

Sophie8916

Slithery said:

Sophie8916 said:
...and the law is changing

Incorrect.
There is a chance that the law may change at some so far unspecified point in the future. The government haven't even drafted the legislation yet, let alone trying to get it through parliment. You can't rely on it ever actually happening.

Incorrect has been drafted 

Ramouth

Sophie8916 said:

Update for you all, he’s downvalued it by 15k and passed his report onto the lender.

His valuation is grossly inaccurate so will see what happens 

Really sorry to hear this.  What has your buyer said?  Are they asking you to drop your price?  

Where I was buying sellers wouldn’t consider dropping prices as there were plenty of low LTV buyers around but I am aware this isn’t the case everywhere.