Valuation refused....

luaive

Apologies this is probably going to be a long one....So.....Last time I was waiting for a decision regarding NatWest valuation, mortgage had been approved pending valuation. Person had come around, had smiled and said 'we'll see' when husband answered question about how much valuation we required to cover the mortgage application (has to be a certain min amount according to paperwork) and valuer had also stated it was an 'unusual property' and would be 'difficult' to value, due to it being a small property on a large site (i cant think of the correct word....its on its own...completely detached, plenty of parking room)  Didn't hear anything for about 2 weeks and then NatWest got back to us and said they had not yet had the valuation result back, and were going to chase it up. Few days later hubby gets an email from natwest (had to reset my phone so I don't have the complete wording) basically the valuation person had decided it wasn't suitable for mortgage security as the garden was overgrown (im in wales it's rained pretty much all summer of course its overgrown!! Unfortunately we both work and hadn't had a chance to cut the lawn on the dry days due to being at work!! And also there was too much clutter, and it didn't follow NatWest policy of being readily available for sale. Also I would add that my husband while speaking to the valuer did say we had been renting for over 15 years. Admittedly we have (well hubby does I've been getting rid of a lot of my things over the years) acumalated items but the place isn't like a horder house, you can walk into the rooms, you can see the size of the rooms. It's the original bathroom (planning on replacing once we own the property) and the valuer commented on it being the original bathroom that was probably put in when it was built. He had a look in the roof, torch through the hatch, hubby asked if he wanted to see in airing cupboard (I do have a shopping bag of items in front of it, but easily moved...pick up handles...move it) and the guy said no, he didnt need to look. Looked in the bedroom, needs decorating some peeling wallpaper, yes, but again, after we own the property. Hubby spoke to NatWest, he said they were just as confused and were going to speak to the valuer to find out why they had refused to do a valuation, as yet we have yet to hear anything but have started to clear out items. What's worrying me (and I have asked hubby to contact the bank to find out !!!!!! the valuer wants) is what is classed as a saleable property?? Do I need to clear out the whole house?!? Do they require the place to be newly decorated? How much stuff are we allowed to own? It's redicilous! We live here!! There is running water, central heating, a working open fire, a working kitchen, a working toilet, carpets, a roof, nothing wrong with the building, everything you need for a home and yet this happens 😭 NatWest have apparently said they can arrange another valuation once we are ready for another one,  (apparently - as hubby spoke to them, i have asked whether they meant a different property but hubby doesnt think so) but im stressed because i don't know how perfect the valuers want the place to be, because its always going to look lived in and not perfect 😟 Anyone else had this issue and come out the other side with a mortgage. I'm so worried it's never going to be good enough 😭 

silvercar

So much that you are going to do when you own it will all affect the valuation it gets now. If that valuation is going to be laughably low, the seller (your current landlord, I’m guessing) would be better placed selling it as vacant on the open market.

Without all your possessions and a quick lock of paint could put it in a state where a realistic valuation can be made. No doubt this would be lower than what it would be with a new bathroom etc but it would be sellable. The problem now is that your possessions and the state of the place hide its true vale and so the valuer isn’t happy to put a price on it.

luaive

But it's never going to have no possessions as I said we live here 😟 How does that make sense? Surely people who rent can also have the opportunity to buy the property? We are clearing out items, at this rate I'm only going to own the clothes I'm wearing 😂 Garden has been cleared, as that was stated as an issue, but surely a valuer can see how much a property is worth without it being empty?? 

Hoenir

The lender determines whether it's adequate security for the money advance being requested. The valuer works for the lender under their instructions. Surveyors look past cosmetic aspects of the property. As they can easily be rectified. Far more interested in the general condition of the building.  Has your LL ever spent much on the property? 

luaive

No he's never done anything, hubby has always fixed issues, boiler, chimney cleaning etc. Landlord only ripped up the side path and then fell out with the person doing the work 😐 but all in all there's nothing wrong with the actual property, triple glazing throughout, heating, everything working. Just mainly cosmetic, will try and convince hubby to paint bedroom wall, but he's always said he won't do any decorating until he owned the place, so not holding out any hope. Got a skip coming at some point so hoping hubby will get rid of a lot of his items 🙏 just like I have/am. Starting to think the valuer was a minimalist because they clearly couldn't see past issues that could easily be rectified 🙄

silvercar

You could speak to a mortgage broker, they may know of a lender who uses a different valuer to NatWest. Do you have a small deposit, so high loan-to-value? That can make lenders nervous.

luaive

I think LTV is 80%. As far as eviction, Landlord isn't even registered, cash in hand, so if he decides to go down that route, firstly he will need to register...Then give us a tenancy agreement, gives us 6 months, then eviction notice is another few months, then court, also he better hope the tax people take installments as im sure its 18 years of over £150 a week unclaimed income, of which I will happily prove he's been receiving, plus being unregistered I will put a claim in for rent repayment order (if that's the right word) if he started down that route, I'll make sure its the road to hell🖕 I mean the only positive with all this is after years of me asking and asking my hubby to please clear out what he doesn't want/use, it might finally be happening 🙏 

silvercar

luaive said:

I think LTV is 80%. As far as eviction, Landlord isn't even registered, cash in hand, so if he decides to go down that route, firstly he will need to register...Then give us a tenancy agreement, gives us 6 months, then eviction notice is another few months, then court, also he better hope the tax people take installments as im sure its 18 years of over £150 a week unclaimed income, of which I will happily prove he's been receiving, plus being unregistered I will put a claim in for rent repayment order (if that's the right word) if he started down that route, I'll make sure its the road to hell🖕 I mean the only positive with all this is after years of me asking and asking my hubby to please clear out what he doesn't want/use, it might finally be happening 🙏 

This is wrong in so many points. Firstly, landlords only need to be registered in certain areas, the majority of the country don’t require landlord registration. Secondly, you pay rent, so you have a tenancy agreement, it just happens to be verbal not written. Thirdly, a landlord would only be required to give you 2 months notice. ……

That aside, if you want a mortgage, see a broker and tell them the NatWest mortgage failed at the valuation stage, so you need a lender who won’t use the same valuation company. In the meantime, do some decluttering and possibly remove the pealing wallpaper and paint the wall a shade of white.

luaive

Thanks.....but I know where I live hence I know what the rules will be regarding registration, already been researching from a previous issue....rules have changed regarding landlords where I live, probably why so many are jumping ship....

Re NatWest, I have asked hubby to confirm with NatWest, but as far as I know (from what he's told me) they have said to contact them once we have the place sorted and they will arrange a second valuation. I did ask him to confirm they were not saying about a different property 😕 When we got the valuation refusal email,  NatWest asked for us to contact them to confirm if we wanted to continue with the application, and apparently hubby was told that they could arrange another valuation once we had sorted the issues highlighted by the valuer. Yes, currently got a boot of stuff to go to a friend's for carbooting, and been getting rid of stuff I never use, actually found 2 electrical items I forgot i had ever bought....still in the package, i need to block Amazon 🙄 😂 i will have a go at slapping some paint on, probably more on myself than the wall, but definitely easier than wallpapering 😂  Maybe on a positive note, if its the same valuer he will at least see we have  done improvements even if it might  not be showhome perfect 🙏.....

housebuyer143

silvercar said:

luaive said:

I think LTV is 80%. As far as eviction, Landlord isn't even registered, cash in hand, so if he decides to go down that route, firstly he will need to register...Then give us a tenancy agreement, gives us 6 months, then eviction notice is another few months, then court, also he better hope the tax people take installments as im sure its 18 years of over £150 a week unclaimed income, of which I will happily prove he's been receiving, plus being unregistered I will put a claim in for rent repayment order (if that's the right word) if he started down that route, I'll make sure its the road to hell🖕 I mean the only positive with all this is after years of me asking and asking my hubby to please clear out what he doesn't want/use, it might finally be happening 🙏 

This is wrong in so many points. Firstly, landlords only need to be registered in certain areas, the majority of the country don’t require landlord registration. Secondly, you pay rent, so you have a tenancy agreement, it just happens to be verbal not written. Thirdly, a landlord would only be required to give you 2 months notice. ……

That aside, if you want a mortgage, see a broker and tell them the NatWest mortgage failed at the valuation stage, so you need a lender who won’t use the same valuation company. In the meantime, do some decluttering and possibly remove the pealing wallpaper and paint the wall a shade of white.

They mentioned they are in Wales - so it's completely different. The OP is correct, that they do have to register with Rent Smart Wales, and they get I believe 6 months notice, after the initial 6 months tenancy.

Bookworm105

so to cut out the wall of text 
- you occupy a rental property which you want to purchase from your landlord
- you need a mortgage and are going for one from Nat West 
- a valuer for the mortgage did a physical inspection of the property but decided the property was unmortgageable so give it value zero

neither you nor the bank have received a written explanation of why the valuer reached that decision. although verbally you believe it to be due to the presentation of the property as being "cluttered"

Nat West has indicated a second valuation is possible, although that presumably depends on what reasons the first valuer actually comes up with and will the bank accept there is sufficient doubt about them to warrant a second look,

so what is your actual question?