FD valuation not as much as expected any ideas !!!

paulb369uk

Hi All,
Got my valuation back from Direct Valuations working on behalf of FD, the valuation came in £2500 less than expected so takes me over the 80% LTV required to get the 5yr 5.29% fixed rate. FD have said I can go onto SVR (currently at 6%) if I wanted but they would not budge over the 80% LTV. I have spoken to the valuers and sent them some other properties in the area to compare against his valuation, someone must have had this problem before !!! did you manage to get the valuation increased?

Many thanks

Paul

ziknik

What do you mean by

“… and sent them some other properties in the area to compare against his valuation”

Have you got very recent sold prices for very similar properties in your area?

Dan_Collins_2

Yes, to fight you have to show sold prices not for sale. £2500 is an od figure, what did you value it at and what kind of property is it?

paulb369uk

Dan_Collins wrote: »

Yes, to fight you have to show sold prices not for sale. £2500 is an od figure, what did you value it at and what kind of property is it?

Thanks for the quick replies, I valued it between 155k & 160k and he came back with 152,500k. I have sent them some similar properties off estate agents sites in the area that are of the same type of house and range from 155k to 165k.

Thanks

ziknik

Asking prices are not the same as value.

Is a pencil worth £100k if I try to sell it for this amount?

Obviously it is not, but it is worth £100k if someone is stupid enough to buy it from me.

Have a look for some sold prices in your area.

https://www.nethouseprices.co.uk

And then allow a few percent (up or down) depending on whether you believe FD believe prices have gone up or down since the sale.

TighterThanTwoCoatsOfPain

holy cow thats harsh! i assumed it was a typo and was 25k.

Did you have the bells and whistles valuation or the external? My external only came in less that we paid literally weeks before, but we have a low LTV so it makes no odds.

The woman i spoke to at FD said the valuations for external quite often came back lower that the full valuation as they dont have the benefit of properly checking the property.

She said they dont recommend the external only if you are borderline with the LTV as they tend to come back on the cautious side.

TEDDYRUKSPIN

Paul,

First Direct valuations are really good at valuating properties. If they state your house is worth £152,500, it must be only worth that. Even if it means £2500 short.

The only way to get it at £155k is to look at the recent sold properties within the last 6 months. House must be like for like. I can tell you this though. Direct valuations will have done this also.

If you really want to get this valued higher, I suggest you purchase through your lender a homebuyer professional report. This is a survey which the surveyor actually enters your property and looks at what is different. But......... does not mean it will increases.

Besides...............the current market of most houses have dropped by 7%. All estate agents put houses at 10% above face value!

paulb369uk

Thanks for the replies, had the belt and braces valuation so it looks like I may well be stuck with the valuation they have offered !!! Well I will see what they come back with tomorrow but from what you have said I won't be holding my breath for the extra £2500.

Thanks again to you all

Paul

mr_mortgage

TEDDYRUKSPIN wrote: »

Paul,

First Direct valuations are really good at valuating properties. If they state your house is worth £152,500, it must be only worth that. Even if it means £2500 short.

Bullocks! (Never mind that FD are not the ones doing the valuation)

Not to be harsh on the esteemed members of RICS, but they are not the most educated nor talented members of society and their average margin of error is well within the £2,500 (about 3.75%) quoted by the OP.

The OP could try to raise the £2500 through other means to bring the LTV to acceptable levels - or have a constructive conversation with the lender. Nethouseprices is all good and well, but quite slow to update with recent figures (in my experience).

MrM.

paulb369uk

mr_mortgage wrote: »

Bullocks! (Never mind that FD are not the ones doing the valuation)

Not to be harsh on the esteemed members of RICS, but they are not the most educated nor talented members of society and their average margin of error is well within the £2,500 (about 3.75%) quoted by the OP.

The OP could try to raise the £2500 through other means to bring the LTV to acceptable levels - or have a constructive conversation with the lender. Nethouseprices is all good and well, but quite slow to update with recent figures (in my experience).

MrM.

Well will wait to see what they come back with tomorrow but I am sure they can stretch to £2500 as a margin !!

neverdespairgirl

Could you not come up with £2.5k from savings or whatever to get you to the necessary LTV?

Or crunch the numbers to see if a £2.5k loan would be worth it if it got you under the 80% threshold?