HALIFAX DEVALUING OUR PROPERTY TO LOWER OUR EQUITY AND FORCE US INTO A HIGHER INTEREST BRACKET

SParkiez

Our current mortgage is up for renewal at the of June, and when attempting to organise a new fixed rate with Halifax, we noticed that they have devalued our property by approx £50-75k!!!! Is anyone else experiencing this issue? We have tried to challenge and complain and have got nowhere - surely there is something we can do.

When buying the flat in June 2021, it was originally value at £400,000. Since purchasing the property, we have flipped the property (as it was a renovation project) - substantial works, including a new boiler, new kitchen, new bathroom etc). Not only have prices increased from June 2021, but we have added substantial value to the property, and have estate agents value our property at approx £435-450k (many similar properties are also being listen and sold for this in the area). HOWEVER, despite all of this and me providing significant evidence, Halifax have infact devalued our property to £381k, which is outrageous. As such, they are claiming we have little equity in the property, and therefore means we are forced into the higher interest rate bracket at our expense to benefit their pockets.

Would be interested to know if this is happening to anyone else, and what can be done to challenge this? Despite trying to complain through our broker, Halifax claim to only value the outside of the property only, have completely disregarded the price of other properties in the area, and have provided no explanation what so ever as to how our property has deceased by £20k in the current climate!

ritz55

See if Halifax can send out a surveyor to get a new valuation, you will likely have to pay for the valuation. Personally I would look to move to another lender who offers free legal and valuation with a better rate. 

BoGoF

Of course there is something you can do, take your business elsewhere if you are not happy with the terms Halifax are offering you.

But not all renovations add value and article yesterday (or day before) that prices are falling.

RelievedSheff

If you are not happy with the rates that Halifax are offering then go to a different lender.

Halifax are under no obligation to accept your valuation of the property. 

dunstonh

When buying the flat in June 2021, it was originally value at £400,000. 

During economic slow downs and property price falls, flats are the worst place to be.  They tend to suffer larger reductions than houses.   So, valuers tend to reflect that in their valuations.

nd have estate agents value our property at approx £435-450k 

Estate agents tend to overpice by around 15%, so that brings you back to £382k.

we noticed that they have devalued our property by approx £50-75k!!!! 

So, it is broadly in line with expectations during a negative period.

k12479

SParkiez said:

Since purchasing the property, we have flipped the property...

If you've 'flipped the property' then you don't own it anymore.

amnblog

Halifax are not picking on you. They value all properties on their books each quarter using their house price index.

This is a measure of property value movements by postcode, type and size. These figures have been coming down across the board so the past six months or so.

Given they are the largest Lender in the Country they will rely on their own figures rather than those of your local agent.

When you request revaluation you will usually need an increase is floor size to get an improved figure.

BikingBud

SParkiez said:

Our current mortgage is up for renewal at the of June, and when attempting to organise a new fixed rate with Halifax, we noticed that they have devalued our property by approx £50-75k!!!! Is anyone else experiencing this issue? We have tried to challenge and complain and have got nowhere - surely there is something we can do.

When buying the flat in June 2021, it was originally value at £400,000. Since purchasing the property, we have flipped the property (as it was a renovation project) - substantial works, including a new boiler, new kitchen, new bathroom etc). Not only have prices increased from June 2021, but we have added substantial value to the property, and have estate agents value our property at approx £435-450k (many similar properties are also being listen and sold for this in the area). HOWEVER, despite all of this and me providing significant evidence, Halifax have infact devalued our property to £381k, which is outrageous. As such, they are claiming we have little equity in the property, and therefore means we are forced into the higher interest rate bracket at our expense to benefit their pockets.

Would be interested to know if this is happening to anyone else, and what can be done to challenge this? Despite trying to complain through our broker, Halifax claim to only value the outside of the property only, have completely disregarded the price of other properties in the area, and have provided no explanation what so ever as to how our property has deceased by £20k in the current climate!

How much money did you put in? Putting money into a property is not the same as adding value, there are many a house on a thread where crazy "improvements" have been undertaken and even crazier prices are being asked afterwards.

Was it cash or borrowed from elsewhere? Added to the mortgage or other loan?

You expected a minimum £35k increase but the lender isn't having that.

So are you flipping or are you staying?

If you are flipping and you spent lots why? Likelihood of others sharing your taste might be minimal.

If staying then you get the benefit of the improvements, how much extra will that be in interest as it seems that this might just be something you have to manage as part of the cost to improve.

Sit back and enjoy a glass of wine in your newly refurbished home.

kingstreet

SParkiez said:

Our current mortgage is up for renewal at the of June, and when attempting to organise a new fixed rate with Halifax, we noticed that they have devalued our property by approx £50-75k!!!! Is anyone else experiencing this issue? We have tried to challenge and complain and have got nowhere - surely there is something we can do.

When buying the flat in June 2021, it was originally value at £400,000. Since purchasing the property, we have flipped the property (as it was a renovation project) - substantial works, including a new boiler, new kitchen, new bathroom etc). Not only have prices increased from June 2021, but we have added substantial value to the property, and have estate agents value our property at approx £435-450k (many similar properties are also being listen and sold for this in the area). HOWEVER, despite all of this and me providing significant evidence, Halifax have infact devalued our property to £381k, which is outrageous. As such, they are claiming we have little equity in the property, and therefore means we are forced into the higher interest rate bracket at our expense to benefit their pockets.

Would be interested to know if this is happening to anyone else, and what can be done to challenge this? Despite trying to complain through our broker, Halifax claim to only value the outside of the property only, have completely disregarded the price of other properties in the area, and have provided no explanation what so ever as to how our property has deceased by £20k in the current climate!

Pay for a physical valuation?

ReadySteadyPop

dunstonh said:

When buying the flat in June 2021, it was originally value at £400,000. 

During economic slow downs and property price falls, flats are the worst place to be.  They tend to suffer larger reductions than houses.   So, valuers tend to reflect that in their valuations.

nd have estate agents value our property at approx £435-450k 

Estate agents tend to overpice by around 15%, so that brings you back to £382k.

we noticed that they have devalued our property by approx £50-75k!!!! 

So, it is broadly in line with expectations during a negative period.

Sounds about right.

ReadySteadyPop

amnblog said:

Halifax are not picking on you. They value all properties on their books each quarter using their house price index.

This is a measure of property value movements by postcode, type and size. These figures have been coming down across the board so the past six months or so.

Given they are the largest Lender in the Country they will rely on their own figures rather than those of your local agent.

When you request revaluation you will usually need an increase is floor size to get an improved figure.

Good points, they are just following the market, not picking on you.