Desktop Valuations

Mconyers_2

I released equity to buy a car and at the time I did not know how much equity i had in the property, Abbey carried out a 'Desktop Valuation' and told me the property was worth £325,000. As new properties of the same type and size were selling for £350k ish this seemed resonable. I have since discovered that the property is only worth £199,950 and was never worth more than £215,000, I now have a large amount of negative equity and have lost my job so payments are difficult. Has anyone else found problems with desktop valuations.

rdsmortgageman

Mconyers wrote: »

I released equity to buy a car and at the time I did not know how much equity i had in the property, Abbey carried out a 'Desktop Valuation' and told me the property was worth £325,000. As new properties of the same type and size were selling for £350k ish this seemed resonable. I have since discovered that the property is only worth £199,950 and was never worth more than £215,000, I now have a large amount of negative equity and have lost my job so payments are difficult. Has anyone else found problems with desktop valuations.

Not of this magnitude! I find it unbelievable that they could be out by £110k

Ian_Griffiths_Halifax

Could it be that there has been a massive increase in New Builds that are still unsold since you did the remortgage? It does look like a massive difference.

Conrad

You also 'told them' what you thought the value was when you completed the application form.
Newbuild prices have dropped like a stone

Dick_here

Mconyers wrote: »

I released equity to buy a car and at the time I did not know how much equity i had in the property, Abbey carried out a 'Desktop Valuation' and told me the property was worth £325,000. I now have a large amount of negative equity and have lost my job so payments are difficult.

How about selling the car ?

snoopy78

Mconyers wrote: »

I released equity to buy a car and at the time I did not know how much equity i had in the property, Abbey carried out a 'Desktop Valuation' and told me the property was worth £325,000. As new properties of the same type and size were selling for £350k ish this seemed resonable. I have since discovered that the property is only worth £199,950 and was never worth more than £215,000, I now have a large amount of negative equity and have lost my job so payments are difficult. Has anyone else found problems with desktop valuations.

Gift deposits skewed the available information on new builds, it happened all over the country, that is why even now statistics for new builds are wrong.

homer_j_3

Mconyers wrote: »

I released equity to buy a car and at the time I did not know how much equity i had in the property, Abbey carried out a 'Desktop Valuation' and told me the property was worth £325,000. As new properties of the same type and size were selling for £350k ish this seemed resonable. I have since discovered that the property is only worth £199,950 and was never worth more than £215,000, I now have a large amount of negative equity and have lost my job so payments are difficult. Has anyone else found problems with desktop valuations.

I think what I would say here is that the flaw with desktop valuation will be that statistical data is the only thing that they can rely upon. When that data has been wrong or inflated by new build companies, it seems natural that the price of your property would drop in the first few years. Clearly you didn't expect the property to drop by the amount it has but you have to accept that you have a degree of responsibility for taking the additional debt.

Have you tried putting your mortgage on interest only whilst you get a job to afford the repayments?

Dan_Collins_2

Yep. it uses the average price in that postcode also.

What I dont get is how you over valued your property so much when you applied?

snoopy78

Dan_Collins wrote: »

What I dont get is how you over valued your property so much when you applied?

Think about it, you build 400 flats in an area that has say 1000 flats, you sell all your 400 flats in 6 to 12 months using gift deposits of 20%. Out of the 1000 flats currrently in that area only, only 100 flats are sold that year.

You have effectively added 16% onto flat prices according to the stats, obviously it is a bit more complex than this as prices will be going up anyway due to confidence in the market, etc. But areas which have seen the greatest problems have been those that did not have a huge amounts of flats before the new builds. And especially areas with neew postcodes that just exist due to the new builds.

Kez100

what has happened to put in such a situation? Does it have mundic or something?

How much did you pay for it and in what year?

Dan_Collins_2

snoopy78 wrote: »

Think about it, you build 400 flats in an area that has say 1000 flats, you sell all your 400 flats in 6 to 12 months using gift deposits of 20%. Out of the 1000 flats currrently in that area only, only 100 flats are sold that year.

You have effectively added 16% onto flat prices according to the stats, obviously it is a bit more complex than this as prices will be going up anyway due to confidence in the market, etc. But areas which have seen the greatest problems have been those that did not have a huge amounts of flats before the new builds. And especially areas with neew postcodes that just exist due to the new builds.

I know how prices work but we are not talking 10 or 20 % here.