LTV wrong - how to fix?

yesnoyesnoyes

I’m prepping myself to renew my mortgage next year, it’s a shared ownership property which I’ve staircased into 100% ownership of now and have completed a lease extension while living here.

My current mortgage with nationwide states that my property is estimated to be worth £275k, with £77k asset. My currently mortgage £193k.

What doesn’t make sense is that flat was valued back in 2016 when I brought it for £275k and given its location and other like for like properties going for over £300k + without the lease extension. I live in a very desirable area and even properties with less space than mine are selling over £300k. Im not being hopeful, I believe my LTV to be wildly out. At the very least it has increased by something in 10 years. It’s as though the valuation hasn’t been changed since I brought the flat and staircased.

What is the best way to remedy this, should I wait until I start the renewal in January which is the soonest I can do it without penalty or is there any benefit to trying to fix this now?

RelievedSheff

If you remortgage to another lender they will carry out their own valuation of the property.

If you do a product transfer with Nationwide they will use the valuation they show on your online banking. You can request a revaluation but it will cost you and with the equity you hold is unlikely to make a difference to the mortgage rate anyway.

poseidon1

https://forums.moneysavingexpert.com/discussion/6687576/ltv-wrong-how-to-fix

Are you certain that like for like properties are actually selling for £300k as opposed to that being mere asking prices?

It is a sad fact that across England ( especially London) flats are reducing in value with many selling below their purchase cost 5 to 10 years ago. - see below

https://thenegotiator.co.uk/news/uk-housing-market-news/more-flats-selling-at-a-loss-amid-leasehold-and-building-safety-concerns/

https://www.theguardian.com/money/2026/aug/08/flats-in-england-not-selling-slashed-prices-buyer

Great for would be new buyers, not so good for vendors

As for when to fix, the macro economic climate is not great. You may have noted that the Iran war and its knock effects on energy costs has had a dire effect on UK government borrowing rates which in turn affects fixed rate mortgages which have been increasing steadily over the past few weeks.

Nationwide's 5 year fixes are now above 5%. The prevailing ethos is to fix now rather than hoping for better terms in the new year.

https://www.moneysavingexpert.com/news/2026/10/mortgage-rates-broker-forecast/

An increase in the Bank of England base rate in November ( which is widely anticipated due to upward inflation) would certainly underscore getting a new fix sooner rather than later.

What is the current level of penalty if you tried to get out before January?

HantsHelper22

Hi, if you look at remortgaging to another lender they'll do their own valuation, so the lease extension and current local sales should be reflected there. If you stay with Nationwide on a product transfer they'll usually use their own estimate, so it's worth comparing both routes when you're within about six months of your deal ending. Getting the next LTV band down can make a difference, so do have your comparable sales and lease extension paperwork ready. Hope that helps.