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  • FIRST POST
    • BlueHorseShoe
    • By BlueHorseShoe 10th Jul 18, 12:24 AM
    • 2Posts
    • 1Thanks
    BlueHorseShoe
    Advice - crazy valuation (Countrywide)
    • #1
    • 10th Jul 18, 12:24 AM
    Advice - crazy valuation (Countrywide) 10th Jul 18 at 12:24 AM
    Funny one. In November 2016 we bought a very nice property in Greenwich, London. We paid £1.15MM for the property and were actually quite pleased with the price we paid. The vendor would have priced the property higher, but needed to complete quickly to fund a pending purchase and was concerned about the pace of sales following Brexit, and in fact we would have paid more than the asking price.

    At the time Countrywide did the survey and also valued the property at £1.15MM. Now that we are coming up to remortgage, countrywide have come back and valued the property at £900K - around 23% below the purchase price. Nothing has changed about the property or the surrounding area, online valuation tools (Zoopla) estimate the value of the property at or above what we paid for it, and the only comparable properties currently listed on Rightmove are on at around £1.5MM. A Google of news stories suggests that, although London is down slightly overall, prices in Greenwich have actually risen slightly during 2018, as investment continues ti flood into the area. There is certainly nothing to suggest a >20% drop in local prices.

    We arenít really sure what to do. It seems crazy for Countrywide to value the property at one level and then a short time after we purchase drop their valuation dramatically, but unfortunately they seem to act for most of the better lenders. Suggestions would be appreciated.
Page 1
    • Xplosivgas
    • By Xplosivgas 10th Jul 18, 12:32 AM
    • 9 Posts
    • 4 Thanks
    Xplosivgas
    • #2
    • 10th Jul 18, 12:32 AM
    • #2
    • 10th Jul 18, 12:32 AM
    Was it an online/drive by valuation, or did someone inspect your house? If the former you can usually pay a fee to have someone come round to carry out a re-valuation. I did that when I was just outside a more preferable LTV %, and it did the trick.
    • BlueHorseShoe
    • By BlueHorseShoe 10th Jul 18, 12:44 AM
    • 2 Posts
    • 1 Thanks
    BlueHorseShoe
    • #3
    • 10th Jul 18, 12:44 AM
    • #3
    • 10th Jul 18, 12:44 AM
    It was a physical inspection. The guy said he had in fact already done a valuation on the property once before, so presumably it was actually the same guy who valued it when we bought it.
    • Gwendo40
    • By Gwendo40 10th Jul 18, 6:46 AM
    • 136 Posts
    • 151 Thanks
    Gwendo40
    • #4
    • 10th Jul 18, 6:46 AM
    • #4
    • 10th Jul 18, 6:46 AM
    There's a lot gone on to effect the London property market in the last 2 years.

    Given what's happened to the Countrywide share price in the time between your two valuations perhaps they've realised that they can't keep indulging in fantasy figures and relying on rampant, policy driven, house price inflation forever and ever and they're getting more realistic with their valuations?
    Perhaps they've realised that there simply aren't enough gullible mugs and money launderers out there to keep on paying these insane prices?
    Last edited by Gwendo40; 10-07-2018 at 7:53 AM.
    • mortgageFTB
    • By mortgageFTB 10th Jul 18, 6:52 AM
    • 113 Posts
    • 102 Thanks
    mortgageFTB
    • #5
    • 10th Jul 18, 6:52 AM
    • #5
    • 10th Jul 18, 6:52 AM
    What is the property? Terraced house, how many bedrooms etc?

    Higher end London market is definitely cooling, so I wouldn!!!8217;t be surprised.
    • csgohan4
    • By csgohan4 10th Jul 18, 7:13 AM
    • 4,631 Posts
    • 2,897 Thanks
    csgohan4
    • #6
    • 10th Jul 18, 7:13 AM
    • #6
    • 10th Jul 18, 7:13 AM
    prices go down as well as up on property, that is risk we all took when we buy
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • silvercar
    • By silvercar 10th Jul 18, 7:57 AM
    • 37,373 Posts
    • 157,377 Thanks
    silvercar
    • #7
    • 10th Jul 18, 7:57 AM
    • #7
    • 10th Jul 18, 7:57 AM
    Re-mortgage to someone that just does a drive by or even a paper revaluation.

    Do you require a large LTV or are increasing the mortgage by a lot? Otherwise I can't see why the lender is making a big deal of it.
    • davidmcn
    • By davidmcn 10th Jul 18, 8:15 AM
    • 8,015 Posts
    • 8,264 Thanks
    davidmcn
    • #8
    • 10th Jul 18, 8:15 AM
    • #8
    • 10th Jul 18, 8:15 AM
    the only comparable properties currently listed on Rightmove are on at around £1.5MM
    Originally posted by BlueHorseShoe
    The meaningful comparables (and the ones the surveyors will be looking at) are completed sales, not those currently on the market. Have you checked completed sale prices?
    • BHS79
    • By BHS79 10th Jul 18, 9:50 PM
    • 2 Posts
    • 0 Thanks
    BHS79
    • #9
    • 10th Jul 18, 9:50 PM
    • #9
    • 10th Jul 18, 9:50 PM
    Hi there. Thanks for the replies (for some reason MSE has locked me out of my account and is refusing to send a password reset, so posting under a new username).

    In answer to your various questions:

    - Prices in some parts of London have come down, but that tends to be at the very high end (>£5MM), or in areas where a lot of new supply is coming online. Neither is true in our case - if anything there is a shortage of high quality supply. Recent press reports indicate that prices continue to rise.

    - Property type: 3 bed penthouse apartment with a large roof garden

    - Comps: there really aren!!!8217;t many, just because the property is quite unique. The only recent transactions were two new build apartments of similar size, each for around £1.5MM, in Nov 2017. Those apartments are more modern, but the spec isn!!!8217;t much different, and their location is far less good, they have less outdoor space etc.
    • BHS79
    • By BHS79 10th Jul 18, 9:53 PM
    • 2 Posts
    • 0 Thanks
    BHS79
    Hi Silvercar,

    I think the LTV would be around 70% based on the original purchase price. We are basically just looking to roll our existing debt at the 2 year point.
    • v6g
    • By v6g 10th Jul 18, 10:38 PM
    • 12 Posts
    • 25 Thanks
    v6g
    Considering that you bought at the absolute peak, that valuation looks about right. The percentage decline is certainly commensurate with other parts of London, and the ongoing corrections being observed in other global bubble cities in that price category (Sydney, Auckland, Vancouver, Toronto). As bond yields continue to gently rise over the coming 3-7 years you can expect the correction to continue.

    As somebody commented above, comparing with listed properties, not actual sold prices is pointless given that in the £1M+ category in the UK, 85-90% of places never actually sell (a dirty little secret of the Britush property industry).
    • getmore4less
    • By getmore4less 10th Jul 18, 10:41 PM
    • 32,390 Posts
    • 19,460 Thanks
    getmore4less
    What are the current lenders retention deals like?

    sometimes that's the easy route if you picked a decent lender first time round.
    • Crashy Time
    • By Crashy Time 11th Jul 18, 12:22 AM
    • 6,253 Posts
    • 2,380 Thanks
    Crashy Time
    Can you post a link?
    • Crashy Time
    • By Crashy Time 12th Jul 18, 1:26 PM
    • 6,253 Posts
    • 2,380 Thanks
    Crashy Time
    Considering that you bought at the absolute peak, that valuation looks about right. The percentage decline is certainly commensurate with other parts of London, and the ongoing corrections being observed in other global bubble cities in that price category (Sydney, Auckland, Vancouver, Toronto). As bond yields continue to gently rise over the coming 3-7 years you can expect the correction to continue.

    As somebody commented above, comparing with listed properties, not actual sold prices is pointless given that in the £1M+ category in the UK, 85-90% of places never actually sell (a dirty little secret of the Britush property industry).
    Originally posted by v6g

    Really....?
    • Simonr66
    • By Simonr66 12th Jul 18, 3:29 PM
    • 27 Posts
    • 23 Thanks
    Simonr66

    As somebody commented above, comparing with listed properties, not actual sold prices is pointless given that in the £1M+ category in the UK, 85-90% of places never actually sell (a dirty little secret of the Britush property industry).
    Originally posted by v6g


    What a load of tosh, I work for a company that deals at this level and more and we aren't experiencing this at all. Irrespective of price if a house is priced correctly for condition, location and market conditions it will sell.


    A valuation for a remortgage is different to a sale/purchase, surveyors tend to only value up to 90% of market value when doing a remortgage.
    • lookstraightahead
    • By lookstraightahead 12th Jul 18, 4:05 PM
    • 279 Posts
    • 286 Thanks
    lookstraightahead
    900K for 90% value sounds about right to me - in my area it is slightly cheaper than yours but purchasers are going in well under the asking price as nothing here is selling.
    • v6g
    • By v6g 12th Jul 18, 5:08 PM
    • 12 Posts
    • 25 Thanks
    v6g
    Really....?
    Originally posted by Crashy Time
    Across the UK as a whole, when considering the period over the past couple of years since the stamp duty changes, yes.
    • Thrugelmir
    • By Thrugelmir 12th Jul 18, 5:14 PM
    • 59,211 Posts
    • 52,601 Thanks
    Thrugelmir
    Who is the lender? Countrywide wil be working under their instruction.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • westernpromise
    • By westernpromise 12th Jul 18, 5:19 PM
    • 4,085 Posts
    • 5,321 Thanks
    westernpromise
    Does this reflect the fact that new build flats are currently hard for developers to offload and the valuer just assumes that second hand ones will be even more so?
    Buying a house, if you believe the market has a way to fall, or if you are paying sill asking prices ( like some sheeple ) or if you are buying in London, is now a massive financial gamble!!!!! - June 8, 2012 by TheCountOfNowhere
    • Crashy Time
    • By Crashy Time 13th Jul 18, 1:09 PM
    • 6,253 Posts
    • 2,380 Thanks
    Crashy Time
    Across the UK as a whole, when considering the period over the past couple of years since the stamp duty changes, yes.
    Originally posted by v6g

    Interesting, obviously there will be disagreement on the point though?
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