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Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.Remortgage valuation eyewateringly low!!
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I'm looking for insight and guidance not trolling! There is no need for your comment is there? I never understand why people feel the need to comment like this. Does it make you feel better? I am sure that you would be perfectly nice to my face but there is something about been invisible behind a computer that brings out the viciousness in some people!
I KNOW valuations v EA are very different but when a house smaller then mine - MUCH smaller, has just sold for far more than my valuation, then there is a discrepancy here! In this post I was asking regarding the value of appealing from people on here who may be expert or in a similar situation.
I wasn't ''trolling'' and I could give you a more detailed response regarding you having an unrealistic opinion of what your house is actually worth, but there's no point, you're obviously just another delusional homeowner who's only interested in hearing what they want to hear as far as the value of their property is concerned. Your use of the phrase ''accidental landlord'' confirms all my suspicions.
https://www.telegraph.co.uk/finance/property/house-prices/11332217/Deluded-sellers-and-sky-high-house-prices-have-stalled-the-property-market.html0 -
Crashy_Time wrote: »
From your link:
the chance of a house-price crash is currently remote. More likely, prices will stay where they are while incomes catch upGather ye rosebuds while ye may0 -
I wasn't ''trolling'' and I could give you a more detailed response regarding you having an unrealistic opinion of what your house is actually worth, but there's no point, you're obviously just another delusional homeowner who's only interested in hearing what they want to hear as far as the value of their property is concerned. Your use of the phrase ''accidental landlord'' confirms all my suspicions.
https://www.telegraph.co.uk/finance/property/house-prices/11332217/Deluded-sellers-and-sky-high-house-prices-have-stalled-the-property-market.html
Have you read the forum etiquette above? No need to be rude and name call - that is the definition of trolling by the way!0 -
I would much prefer to sell the existing house but due to the market we are going to rent it out instead (another one of those accidental landlords unfortunately).
You might not want to hear it but that's the problem. You aren't willing to sell because, as you say, the market isn't meeting the price you have in your head. In other words it's current market value is unacceptable to you and you are hoping this will recity at some point. However santander don't care about some point, they are valuing on today's market value.0 -
ReadingTim wrote: »Don't forget that any house purchase is made up of deposit + mortgage, whereas you're only looking at the 'mortgage' part of that amount, so it'll naturally be less than the £725k total which the EAs are touting.
However, given you're now also essentially going through the same process as your would-be buyers were when you were selling, you're probably now finding out why the market is "sluggish and rather unpredictable"...
Sorry but this is 100% wrong and you clearly don't understand the mortgage market and valuations.
The valuation has nothing to do with deposits or the amount being borrowed.
The valuation is an independent specialist who "looks" at the property and assess how much he believes the property is worth. He knows nothing of what is being put down as a deposit or borrowed. He looks at the condition of the property and what other property have sold for. Valuations will often be lower than Estate agency valuations but should be close to comparable sale prices. I recently had a valuation that came in at £350K when the estate agents said £395 / £400K. He will naturally be conservative, he is not in a bidding war nor does he love the property and want it as forever home.0 -
Did you get a great deal when you bought it?
Have you extended it since buying it?0 -
Sorry but this is 100% wrong and you clearly don't understand the mortgage market and valuations.
The valuation has nothing to do with deposits or the amount being borrowed.
The valuation is an independent specialist who "looks" at the property and assess how much he believes the property is worth. He knows nothing of what is being put down as a deposit or borrowed. He looks at the condition of the property and what other property have sold for. Valuations will often be lower than Estate agency valuations but should be close to comparable sale prices. I recently had a valuation that came in at £350K when the estate agents said £395 / £400K. He will naturally be conservative, he is not in a bidding war nor does he love the property and want it as forever home.
I had assumed it was a case of 'what an EA claimed they could sell it for' vs 'what a bank would lend to buy it for' - the valuation will be less optimistic than the EA, plus the bank is unlikely to lend 100% LTV.
Furthermore, given the OP was talking about remortgaging because they wouldn't sell, I had inferred the main basis of their post/rant was that they're going to get far less money from the bank than they thought they were 'promised' by the EA, part of which is usually account for by the buyers' deposit (which the bank isn't overly concerned if the buyer loses due to a fall in house prices...)0 -
Thank you to the OP for posting this...we!!!8217;re in a similar position right now-except our house value doesn!!!8217;t come anywhere near yours and we!!!8217;re partly remortgaging to consolidate our renovation related costs/debts. Our valuation has come in £20000 less than what we proposed to the lender (£30000 less than zoopla incase I!!!8217;m seen as unrealistic)... it makes a huge difference to our LTV and therefore the rates we can be offered... our lender has told one of us there are no notes to say why, the other of us has been told there are no comparable properties... we bought two years ago have done massive renovations to a home that needed everything possible seen to, we!!!8217;ve also added high quality f and fs and a bedroom... the market round here is said to have increased over 5% over the last year and yet all we are being offered as a value is what next door paid for theirs 10 years ago with one (or two as their loft is not approved) less bedroom and without the design flow and f and fs... there are lots of properties with the same basic description in the town (ie semi 4 bed two receptions 2 baths...) ours has things they don!!!8217;t-huge gardens for example, yet they!!!8217;re priced (I appreciate there are differences between a !!!8220;for sale!!!8221; price and valuation btw) sometimes £10000 more... I!!!8217;m beginning to wonder if the valuers are told to go low for the rates... any constructive feedback welcome !!!55357;!!!56911;!!!55356;!!!57339;0
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I have gone about this sensibly folks and I am not greedy or unrealistic. I understand that surveyors err on the side of caution (as do I) but I think in this case all the evidence points to the fact that the valuation seems very wide of every other professional estimate. Indeed it is around 20 per cent lower than everything else and I know that the market is volatile at the moment but the valuers estimate of 575K does not seem at all accurate.
1. Valuations in the last 12 months from Estate Agents (I have emails and letters from them)
a. 700k-725k
b. 700-725
c. 717k
d. £700k
e. 710-750
f. 700k
2. We received an offer of 675k in Jan/Feb which fell through as the buyer was self-employed and could not secure his mortgage.
3. The property is unique in the area as it is a Victorian building formerly part of a conversion; there are only two other houses like it in neighbouring blocks and they have not been up for sale in over 18 years.
a. There have been two house sales this year on my street
I. Property One; asking price of 550k and they accepted 525k in Jan as they wanted a quick sale which they got. This property is 1222 sq. ft. of living space.
II. Property Two; asking price of 600k and was sold for 605K in April. This property is 1249 sq. ft. of living space.
My property is 2100 sq. ft. of living space.
According to Land Registry figures of sq. footage for terraced properties in the area, this currently stands at £394 per sq. ft., even if we said that conservatively this is reduced to £350 that would still value my property at 735k. Current Estate agents have said that all properties on my road go for over £400 per sq.ft. and sales over the last few years, including the recent two, corroborate this. If we were to look at the surveyor's valuation this would equate to £273 per sq. ft. Land Registry has 1-2 bed flats in the area selling at £384 per sq.ft.!!
I understand the market and that a house is only worth what someone will pay for it and I am not pushing for the top-end estimate as I know that I would not pay that and I think the EAs are unrealistic but equally so is this valuation if you look at the facts. Not sure why some people are so upset - all I am seeking is some advice - thank you @eddddy & @ ex surveyor in particular.0 -
ReadingTim wrote: »I had assumed it was a case of 'what an EA claimed they could sell it for' vs 'what a bank would lend to buy it for' - the valuation will be less optimistic than the EA, plus the bank is unlikely to lend 100% LTV.
Furthermore, given the OP was talking about remortgaging because they wouldn't sell, I had inferred the main basis of their post/rant was that they're going to get far less money from the bank than they thought they were 'promised' by the EA, part of which is usually account for by the buyers' deposit (which the bank isn't overly concerned if the buyer loses due to a fall in house prices...)
Not ranting Tim - just asking. After 18 years there I have a good chunk of equity in the property so if anyone will lose out it is me not the mortgage lender! And the EAs 'promised' me nothing - it is just a guide.0
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