Re-mortgage valuation - can I appeal?

Twins

Hi, hoping to get some help with what's happened today.

We are going though a re-mortgage on our property.  The valuer came out today and basically ballparked us to a similar house that was sold in January for £490k on our street.   

Now this other house was in terrible condition, think old 1950's and now it's currently being completely gutted and renovated by the new owner.   Our house is in good condition, double glazed, new bathroom, nice kitchen, extra shower room, extension etc.  However, the valuer said all he looks for is the overall structure eg. 3 bed, has it got a garage, is it terraced, has it the same number of reception rooms etc but the actual condition of the house doesn't really influence the value which I was shocked with.  So what's the point of renovating houses if they will be valued at the same price as Mr Bloggs who does nothing to their house?

The problem we have is hardly any houses go on the market around here, they usually go on rent.  So we have this house that sold at £490k and one on the another street that sold at £580k in the past year.

Our house was submitted to the bank at £500k by our broker but I'm worried we are now going to get a lower valuation.  What can I do about appealing if it does come down to this?  We have the issue that we don't have many comparable sold prices to go back with so don't know how we stand on this.

Appreciate your thoughts....  thank you

K_S

@twins First question is, will a small downvaluation matter? That will depend on the loan size / LTV

Twins said:

Hi, hoping to get some help with what's happened today.

We are going though a re-mortgage on our property.  The valuer came out today and basically ballparked us to a similar house that was sold in January for £490k on our street.   

Now this other house was in terrible condition, think old 1950's and now it's currently being completely gutted and renovated by the new owner.   Our house is in good condition, double glazed, new bathroom, nice kitchen, extra shower room, extension etc.  However, the valuer said all he looks for is the overall structure eg. 3 bed, has it got a garage, is it terraced, has it the same number of reception rooms etc but the actual condition of the house doesn't really influence the value which I was shocked with.  So what's the point of renovating houses if they will be valued at the same price as Mr Bloggs who does nothing to their house?

The problem we have is hardly any houses go on the market around here, they usually go on rent.  So we have this house that sold at £490k and one on the another street that sold at £580k in the past year.

Our house was submitted to the bank at £500k by our broker but I'm worried we are now going to get a lower valuation.  What can I do about appealing if it does come down to this?  We have the issue that we don't have many comparable sold prices to go back with so don't know how we stand on this.

Appreciate your thoughts....  thank you

Twins

K_S said:

@twins First question is, will a small downvaluation matter? That will depend on the loan size.

Twins said:

Hi, hoping to get some help with what's happened today.

We are going though a re-mortgage on our property.  The valuer came out today and basically ballparked us to a similar house that was sold in January for £490k on our street.   

Now this other house was in terrible condition, think old 1950's and now it's currently being completely gutted and renovated by the new owner.   Our house is in good condition, double glazed, new bathroom, nice kitchen, extra shower room, extension etc.  However, the valuer said all he looks for is the overall structure eg. 3 bed, has it got a garage, is it terraced, has it the same number of reception rooms etc but the actual condition of the house doesn't really influence the value which I was shocked with.  So what's the point of renovating houses if they will be valued at the same price as Mr Bloggs who does nothing to their house?

The problem we have is hardly any houses go on the market around here, they usually go on rent.  So we have this house that sold at £490k and one on the another street that sold at £580k in the past year.

Our house was submitted to the bank at £500k by our broker but I'm worried we are now going to get a lower valuation.  What can I do about appealing if it does come down to this?  We have the issue that we don't have many comparable sold prices to go back with so don't know how we stand on this.

Appreciate your thoughts....  thank you

It's a 70% LTV.  Would rather get the whole amount and not have to pay out extra if that's what you mean?

K_S

Twins said:

K_S said:

@twins First question is, will a small downvaluation matter? That will depend on the loan size.

Twins said:

Hi, hoping to get some help with what's happened today.

We are going though a re-mortgage on our property.  The valuer came out today and basically ballparked us to a similar house that was sold in January for £490k on our street.   

Now this other house was in terrible condition, think old 1950's and now it's currently being completely gutted and renovated by the new owner.   Our house is in good condition, double glazed, new bathroom, nice kitchen, extra shower room, extension etc.  However, the valuer said all he looks for is the overall structure eg. 3 bed, has it got a garage, is it terraced, has it the same number of reception rooms etc but the actual condition of the house doesn't really influence the value which I was shocked with.  So what's the point of renovating houses if they will be valued at the same price as Mr Bloggs who does nothing to their house?

The problem we have is hardly any houses go on the market around here, they usually go on rent.  So we have this house that sold at £490k and one on the another street that sold at £580k in the past year.

Our house was submitted to the bank at £500k by our broker but I'm worried we are now going to get a lower valuation.  What can I do about appealing if it does come down to this?  We have the issue that we don't have many comparable sold prices to go back with so don't know how we stand on this.

Appreciate your thoughts....  thank you

It's a 70% LTV.  Would rather get the whole amount and not have to pay out extra if that's what you mean?

@twins

At application - value 500k, loan size 350k, LTV 70%

After downval to 490k - value 490k, loan size 350k, LTV 71.5%

If you're with a lender like Nationwide, Halifax, etc. that have an LTV band of 60-75 or a lender like Metro (Prime) whose lowest LTV band is 75%, the above down-valuation won't make any difference to you. You'll still be able to borrow 350k, you'll still get the same product that you applied for and you don't need to add any cash. In fact your valuation could go all the way down to 467k and still not impact your borrowing.

If you are with a lender that has a separate LTV band between 70-75% LTV, then you may need to reduce your borrowing to keep within the 70% LTV and keep the same product. But even that isn't a given as lenders will sometimes have no rate difference between their 70% and 75% products.

Twins

K_S said:

Twins said:

K_S said:

@twins First question is, will a small downvaluation matter? That will depend on the loan size.

Twins said:

Hi, hoping to get some help with what's happened today.

We are going though a re-mortgage on our property.  The valuer came out today and basically ballparked us to a similar house that was sold in January for £490k on our street.   

Now this other house was in terrible condition, think old 1950's and now it's currently being completely gutted and renovated by the new owner.   Our house is in good condition, double glazed, new bathroom, nice kitchen, extra shower room, extension etc.  However, the valuer said all he looks for is the overall structure eg. 3 bed, has it got a garage, is it terraced, has it the same number of reception rooms etc but the actual condition of the house doesn't really influence the value which I was shocked with.  So what's the point of renovating houses if they will be valued at the same price as Mr Bloggs who does nothing to their house?

The problem we have is hardly any houses go on the market around here, they usually go on rent.  So we have this house that sold at £490k and one on the another street that sold at £580k in the past year.

Our house was submitted to the bank at £500k by our broker but I'm worried we are now going to get a lower valuation.  What can I do about appealing if it does come down to this?  We have the issue that we don't have many comparable sold prices to go back with so don't know how we stand on this.

Appreciate your thoughts....  thank you

It's a 70% LTV.  Would rather get the whole amount and not have to pay out extra if that's what you mean?

@twins

At application - value 500k, loan size 350k, LTV 70%

After downval to 490k - value 490k, loan size 350k, LTV 71.5%

If you're with a lender like Nationwide, Halifax, etc. that have an LTV band of 60-75 or a lender like Metro (Prime) whose lowest LTV band is 75%, the above down-valuation won't make any difference to you. You'll still be able to borrow 350k, you'll still get the same product that you applied for.

If you are with a lender that has a separate LTV band between 70-75% LTV, then you may need to reduce your borrowing to keep within the 70% LTV and keep the same product. But even that isn't a given as lenders will sometimes have no rate difference between their 70% and 75%  

Oh my goodness, thank you!!  I was expecting the worse and because you hear of such tight criteria now I thought that would be it!  This gives me some hope that we may be okay!  Thank you so much for your quick reply.  I think I can finally go into the weekend with a little relief now instead of the stress that I was carrying in my head and on my shoulders.   Thanks again