first direct valuation low can we argue?

fraggle8

does anyone know how easy it is to argue against a valuation (for remortgage) and how successful arguing can be?

basically i have recently had a valuation for a first direct mortgage (the £180 internal valuation) which has come back at £10000 less than we were expecting thus taking us above the 90% threshold. i realise that house prices are dropping etc and we have taken that into consideration. i checked websites such as zoopla land registry and nationwide and they have all stated upwards of £200000 but valuers have said £180000. it is impossible to compare locally as no other houses on street have sold since we brought ours, ours is also the largest having been extended. no other houses in area are similar in terms of style size etc.

house was valued at £175000 in july 06 and is on the south east coast which according to news had one of the largest prices rises lately.

we are now considering trying to get surveyors to up there value but unsure wether they will there is a house on same street although smaller as different style currently on sale at £200000 obviously they will prob sell for less but it has still been valued £20000 more than ours when smaller.

other option ois to take out a loan to cover the shortfall is this a good idea

thanks for any advice.

beecher

Perhaps an option is to look at a lender with an 'up to 95% LTV' instead of going with FD? Or looking to see what your present lender says - getting a loan to cover the shortfall sounds like a bad idea to me and I wouldn't be overly surprised that valuations are hitting 2006 levels, as that is certainly the case where I live.

SuzySu

We will soon be having a valuation as we are at the point of completing on the sale of our house (fingers crossed). However, our EA has warned us that valuers are being really strict with their valuations due to the credit crunch and they are likely to value our property for under what the sale has been agreed at.

The problem is, if this happens, we will be unable to redeem our mortgage and 2nd charge as we will only have £500 equity once these have been paid. Needlesstosay I hope it does not happen.

JimmyTheWig

fraggle8 wrote: »

does anyone know how easy it is to argue against a valuation (for remortgage) and how successful arguing can be?

basically i have recently had a valuation for a first direct mortgage (the £180 internal valuation) which has come back at £10000 less than we were expecting thus taking us above the 90% threshold. i realise that house prices are dropping etc and we have taken that into consideration. i checked websites such as zoopla land registry and nationwide and they have all stated upwards of £200000 but valuers have said £180000. it is impossible to compare locally as no other houses on street have sold since we brought ours, ours is also the largest having been extended. no other houses in area are similar in terms of style size etc.

house was valued at £175000 in july 06 and is on the south east coast which according to news had one of the largest prices rises lately.

we are now considering trying to get surveyors to up there value but unsure wether they will there is a house on same street although smaller as different style currently on sale at £200000 obviously they will prob sell for less but it has still been valued £20000 more than ours when smaller.

other option ois to take out a loan to cover the shortfall is this a good idea

thanks for any advice.

Very hard to judge without seeing the house, knowing the area, being a surveyor, etc, but from what you've said I'm afraid I think the 180k valuation sounds about right.
I'm not one of the HPC brigade, but I think a 5k rise in the last two years is reasonable.

Don't know what the deal is with arguing. Worth a try, I guess. Maybe ask them to go to 185, rather than the full 190?


A loan for the shortfall may be the solution, but it is quite an extreme solution. Guess it depends on how much the shortfall is. You'd need to check that FD would allow you to do it, and that they'd still lend you the same amount now you have a loan.

As beecher says, another lender may be your best bet.
Have you been to a broker?

LillyJ

Having just had a valuation for a mortgage as an FTB, our valuation came back fine. We are by no means at the ceiling for the street, but we are not at 2006 levels either. It just goes to show that there is such a regional variation, including variations from street to street.

_Andy_

Without 2-3 'comparables' of houses similar in style/size/locale that have actually sold at the value you need (and recently), you're not going to be able to get any joy I'm afraid.