Near to true value of house??

fitzykev

user1977 said:

fitzykev said:

user1977 said:

fitzykev said:

Hedgepigs said:

fitzykev said:

Soot2006 said:

fitzykev, it sounds like you're in that very stressful waiting period where you are emotionally committed to the purchase and therefore now terrified of everything going wrong. This will continue until the purchase is completed (or uncompleted!). Lots more stressors to come ... but try to separate yourself from the things you can't control. If the lender values the bungalow lower than your offer and you don't have the difference, then discuss it with the Estate Agent. They'll either be able to talk their seller into lowering the value, or they'll help you to find another suitable property.

But the value will take into account all the things you mentioned, including how good local schools are, visual appeal, etc ...  We got a very odd valuation paragraph on our lender's survey, including sentences like "unexpectedly nice street" ... Made me think the surveyor turned into the street and thought "oh this is quite nice actually; thought it would be horrid"" ....

So say for talk sake I have bid 8 thousand over what are the scenarios to come to a deal? I believe if thats the case the lender will still lend but not as much is thst right? 

Depends on what your LTV is too. If you have a high enough LTV they might offer the same amount, but at a higher LTV  (which may mean higher interest rates)

House bid to £163000 deposit £66000 mortgage £97000. It could be a few thousand over if it is not spot on. 

So only 59% LTV. Should be easy enough to borrow the same amount even if the valuation is lower, but as mentioned might be a different product depending on the LTV %. Obviously depends whether you're still happy to pay the same amount!

3. Main features of the loan

Amount and currency of the loan to be granted: £97,000.00

Duration of the loan: 24 years

This illustration assumes that the mortgage will start on 01 September 2022.

This is a capital repayment mortgage where you gradually pay off the amount you have borrowed, as well as the

interest, over the life of the mortgage.

Product Description: 

The interest rate is fixed for 5 years and 1 month to 30 September 2027.

From 01 October 2027, the interest rate varies according to Variable Rate for the

remaining term of the mortgage.

Total amount to be repaid: £166,718

This means you will pay back £1.72 for every £1 borrowed.

This amount is illustrative and may vary in particular in relation with

the variation of interest rate(s).

Value of the property assumed to prepare this information sheet: £163,000

Minimum value of the property required to borrow the illustrated amount: £114,118

This loan will be secured on your home.

None of that tells us what's the maximum LTV they'll allow for that product.

Is minimum value of property at the bottom not the amount they are allowing? 

fitzykev

fitzykev said:

user1977 said:

fitzykev said:

user1977 said:

fitzykev said:

Hedgepigs said:

fitzykev said:

Soot2006 said:

fitzykev, it sounds like you're in that very stressful waiting period where you are emotionally committed to the purchase and therefore now terrified of everything going wrong. This will continue until the purchase is completed (or uncompleted!). Lots more stressors to come ... but try to separate yourself from the things you can't control. If the lender values the bungalow lower than your offer and you don't have the difference, then discuss it with the Estate Agent. They'll either be able to talk their seller into lowering the value, or they'll help you to find another suitable property.

But the value will take into account all the things you mentioned, including how good local schools are, visual appeal, etc ...  We got a very odd valuation paragraph on our lender's survey, including sentences like "unexpectedly nice street" ... Made me think the surveyor turned into the street and thought "oh this is quite nice actually; thought it would be horrid"" ....

So say for talk sake I have bid 8 thousand over what are the scenarios to come to a deal? I believe if thats the case the lender will still lend but not as much is thst right? 

Depends on what your LTV is too. If you have a high enough LTV they might offer the same amount, but at a higher LTV  (which may mean higher interest rates)

House bid to £163000 deposit £66000 mortgage £97000. It could be a few thousand over if it is not spot on. 

So only 59% LTV. Should be easy enough to borrow the same amount even if the valuation is lower, but as mentioned might be a different product depending on the LTV %. Obviously depends whether you're still happy to pay the same amount!

3. Main features of the loan

Amount and currency of the loan to be granted: £97,000.00

Duration of the loan: 24 years

This illustration assumes that the mortgage will start on 01 September 2022.

This is a capital repayment mortgage where you gradually pay off the amount you have borrowed, as well as the

interest, over the life of the mortgage.

Product Description: 

The interest rate is fixed for 5 years and 1 month to 30 September 2027.

From 01 October 2027, the interest rate varies according to Variable Rate for the

remaining term of the mortgage.

Total amount to be repaid: £166,718

This means you will pay back £1.72 for every £1 borrowed.

This amount is illustrative and may vary in particular in relation with

the variation of interest rate(s).

Value of the property assumed to prepare this information sheet: £163,000

Minimum value of the property required to borrow the illustrated amount: £114,118

This loan will be secured on your home.

None of that tells us what's the maximum LTV they'll allow for that product.

Is minimum value of property at the bottom not the amount they are allowing? 

Value of the property assumed to prepare this information sheet: £163,000

Minimum value of the property required to borrow the illustrated amount: £114,118

This loan will be secured on your home -

user1977

fitzykev said:

fitzykev said:

user1977 said:

fitzykev said:

user1977 said:

fitzykev said:

Hedgepigs said:

fitzykev said:

Soot2006 said:

fitzykev, it sounds like you're in that very stressful waiting period where you are emotionally committed to the purchase and therefore now terrified of everything going wrong. This will continue until the purchase is completed (or uncompleted!). Lots more stressors to come ... but try to separate yourself from the things you can't control. If the lender values the bungalow lower than your offer and you don't have the difference, then discuss it with the Estate Agent. They'll either be able to talk their seller into lowering the value, or they'll help you to find another suitable property.

But the value will take into account all the things you mentioned, including how good local schools are, visual appeal, etc ...  We got a very odd valuation paragraph on our lender's survey, including sentences like "unexpectedly nice street" ... Made me think the surveyor turned into the street and thought "oh this is quite nice actually; thought it would be horrid"" ....

So say for talk sake I have bid 8 thousand over what are the scenarios to come to a deal? I believe if thats the case the lender will still lend but not as much is thst right? 

Depends on what your LTV is too. If you have a high enough LTV they might offer the same amount, but at a higher LTV  (which may mean higher interest rates)

House bid to £163000 deposit £66000 mortgage £97000. It could be a few thousand over if it is not spot on. 

So only 59% LTV. Should be easy enough to borrow the same amount even if the valuation is lower, but as mentioned might be a different product depending on the LTV %. Obviously depends whether you're still happy to pay the same amount!

3. Main features of the loan

Amount and currency of the loan to be granted: £97,000.00

Duration of the loan: 24 years

This illustration assumes that the mortgage will start on 01 September 2022.

This is a capital repayment mortgage where you gradually pay off the amount you have borrowed, as well as the

interest, over the life of the mortgage.

Product Description: 

The interest rate is fixed for 5 years and 1 month to 30 September 2027.

From 01 October 2027, the interest rate varies according to Variable Rate for the

remaining term of the mortgage.

Total amount to be repaid: £166,718

This means you will pay back £1.72 for every £1 borrowed.

This amount is illustrative and may vary in particular in relation with

the variation of interest rate(s).

Value of the property assumed to prepare this information sheet: £163,000

Minimum value of the property required to borrow the illustrated amount: £114,118

This loan will be secured on your home.

None of that tells us what's the maximum LTV they'll allow for that product.

Is minimum value of property at the bottom not the amount they are allowing? 

Value of the property assumed to prepare this information sheet: £163,000

Minimum value of the property required to borrow the illustrated amount: £114,118

This loan will be secured on your home -

Oops, sorry. There you go then.

fitzykev

Found the amount it's 59% 

aoleks

on average, as dictated by the law of large numbers, the "real" value will be whatever the house sold for last time + the applicable percentage increase in that street/postcode/area etc. for that type of property.

+/- for the state of the property and some convenience and you've got a real value. the entire concept is flawed though.

a nearly derelict old property with very nice views and some quirky features could be worth a lot for someone who dreams of such a property. while it might not be worth much in the objective eyes of a surveyor or a random person, it can hold a lot of value for their prospective owner.

I often see very old properties in London with cracked walls, mould and uneven floors. I wouldn't pay a tenner for them, where I'm from they get demolished and rebuilt with modern materials. I do understand, however, that I have no chance of ever seeing such a property for sale for less than maybe £1 million and that some people are either happy to live in there or happy to pay that price.

Sarah1Mitty2

The bank valuation is the best thing to look at, they take account of current mortgage rates and economic conditions etc., what a house previously sold for isn`t really relevant.

fitzykev

Good news I got the mortgage acceptance letter