Worth getting a new valuation with lender following renovations?

b1gdeano

Hi

We moved into our house in Nov 2023, and for the following year have spent time and money renovating it. The house was in poor condition and needed thoroughly renovated, every wall/ceiling replastered, every room redecorated with new wallpaper/paint/carpets throughout. New Bathroom suit and boarded/tiled. New roof and lead flashing on chimneys. Garden was a jungle that is now mostly tamed. Kitchen refreshed. Basically spent approx 40k on it after purchase to make it up to standard. It had been empty for 5 years unheated, and had been an elderly persons who last decorated in the 60s from the style.

We secured it with a 12k discount to the asking price which was already discounted by approx 30-40k to what a ready to go property would have went for at the time in the area. Now its pretty much where it needs to be is it worth getting the lender to come revalue it? Or wait till its time to remortage? The bank currently has the value down as its pre-renovated price, which was a discount to a discount, and is not representative of what it would fetch if it was to go on the market today. 

Appreciate some advice on if its worth getting the lender to revalue it now so the current value is reflected?

TheSpectator

If you want a valuation for yourself, by all means get one but your lender is unlikely to be interested until re- mortgage time.

b1gdeano

It was more to have more accurate details with the lender - If say we enter an economic downturn I would rather the bank know correctly what the correct current value is rather than the lower one - surely it would make it easier come renewal time to not argue at its value then should we have prices that have fallen etc?

Guess I should just call them next week and speak to them about it

Sarahspangles

b1gdeano said:

Hi

We moved into our house in Nov 2023, and for the following year have spent time and money renovating it. The house was in poor condition and needed thoroughly renovated, every wall/ceiling replastered, every room redecorated with new wallpaper/paint/carpets throughout. New Bathroom suit and boarded/tiled. New roof and lead flashing on chimneys. Garden was a jungle that is now mostly tamed. Kitchen refreshed. Basically spent approx 40k on it after purchase to make it up to standard. It had been empty for 5 years unheated, and had been an elderly persons who last decorated in the 60s from the style.

We secured it with a 12k discount to the asking price which was already discounted by approx 30-40k to what a ready to go property would have went for at the time in the area. Now its pretty much where it needs to be is it worth getting the lender to come revalue it? Or wait till its time to remortage? The bank currently has the value down as its pre-renovated price, which was a discount to a discount, and is not representative of what it would fetch if it was to go on the market today. 

Appreciate some advice on if it’s worth getting the lender to revalue it now so the current value is reflected?

Your mortgage provider has to pay a valuer and confirming a substantial change in condition will probably involve a home visit. Would you be prepared to pay? The mortgage provider may value the property for free or at a discounted charge when you remortgage. Unless you’re close to renewal you could end up paying twice.

MWT

b1gdeano said:

Guess I should just call them next week and speak to them about it

If you are on a fixed interest rate at the moment when does that expire? Your lender will have no motivation to revalue mid-fix, and it doesn't change anything regarding your current fix even if they do revalue it.

You also need to work out if getting the value you believe it is now worth would move you to a lower interest rate due to the better LTV, when you either take a new product from your current lender or seek to remortgage elsewhere, but if for example you are already at say 60% LTV then there is nothing to be gained as the rates for most lenders don't go any lower after that.

user1977

b1gdeano said:

If say we enter an economic downturn I would rather the bank know correctly what the correct current value is rather than the lower one

Not sure in what circumstances that would make any difference during your current product?

400ixl

Would make no difference to the current lender. They have lent against the circumstances at the time. If the current value mattered during the term then we would all be having to do it yearly as everyone's house changes value or may have had work done.

Ensuring you have the right level of buildings and content insurance is the more important part, but that does not require any sort of official valuation either.

If it is for your own curiosity then by all means get an estate agent to do a valuation.

Otherwise just deal with it when you need to renew your mortgage.