Re mortgage valuation this week!

M1k3H said:
Yes.


The OP was worried that because the works were incomplete they could come back with a lower value. In that case they could end up with a higher LTV.

How much equity you own in the house is irrelevant, unless you are planning to sell.
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How much equity you have is very important, I mean you literally said so yourself, it affects the LTV.

The OP didnt give the impression they thought it would affect it that much unless I missed something.
You would have to go some way to build an extension and lower the value of the house.
He seemed worried that the end cosmetics may lower the revaluation on how I read it, not devalue the original house.

It still doesn't make sense anyway when you posted like this..

M1k3H said:
But a 10k deposit on 100k house is 10%, whereas 10k deposit on a 200k house is 5% which might mean higher interest rate...
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I think your arguing a really fringe position here that the value of the extended house is below the original one.
 
fastwunz said:
Yep when a surveyor visits your property to perform a mortgage valuation, there is a lot more involved than you may think. Measuring is important as the surveyor has to write a physical report after their visit comparing your property to others that have sold within a relevant distance that match the attributes of your property as closely as possible. This then allows the surveyor to come up with an accurate valuation of your property based specifically on comparable evidence - it has absolutely nothing to do with personal opinion and there is a high amount of detail involved. It is to the banks that the surveyors are ultimately responsible should they over value a property without sufficient comparable evidence to back it up. Ignore what an estate agent says - a surveyors valuation is based on specific and demonstrable market evidence and will provide the lender with a much more reasonable and technically true market value.

a lot of people are facing high interest rates at the moment and are trying to remortgage for as high a value as possible in order to lower their LTV - I’m afraid many are getting a bit of a reality check given what has happened with the market since good old Lizzy came along and completely wrecked it. Anyone who tries to market their house at 2022 prices needs a slap around the face with a wet kipper.
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When remortgaged last year in Feb (ie rates were starting to climb) the bank valued the house a fair bit lower than estimates.

For us it was OK. LTV band wasn't altered. And that's before now. Wouldn't want to be remortgaging with a 90+ LTV!
 
M1k3H said:
How much equity you own in the house is irrelevant, unless you are planning to sell.
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I think you need to explain what you mean in more detail, which should be interesting in that you are wrong, but at least we can see your thought process.
 
jaybee said:
I think you need to explain what you mean in more detail, which should be interesting in that you are wrong, but at least we can see your thought process.
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My house went up by approx 50k since I remortarged. Do you think that has affected my financial position?
 
413x said:
When remortgaged last year in Feb (ie rates were starting to climb) the bank valued the house a fair bit lower than estimates.

For us it was OK. LTV band wasn't altered. And that's before now. Wouldn't want to be remortgaging with a 90+ LTV!
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This is generally the observations people make when houses are revalued in my experience.
IMO valuations tend to be cautious.

Even on new properties. Years ago my parents were buying a new house. They managed to get it (as in win the race to reserve off plan) but something held the chain up and the developer was pushing very hard to complete on time, so talk of bridging loans etc.
Then the mortgage company surveyor came in and valued lower than the asking price which caused all sorts of other issue.
His view it was over priced despite all the houses on the estate "selling" within days of being released. He was comparing to houses on other estates around the town.

I had my own bad experience. Having paid for the most expensive survey on a house the surveyor picked up a couple of issues that needed fixing and hence put down to withhold funds.
The developer (was a house being redeveloped) said he would fix. We than had to pay a resurvey fee, where surveyor then signed off the works as having been completed.
Day after we moved in the heating broke down, which was one of the issues to be fixed. Luckily we had a gas safe engineer as a family friend, who came round on the Sunday and said this hasn't been touched they have probably just rubbed some areas with a rag to make it look like they have been working on it.
Building society stood behind their surveyor. We nearly went legal but problem is your talking decent amounts of cash then. The family friend fixed it for us for beer money so at that point wasn't worth progressing as we couldn't demonstrate loss anyway.
 
M1k3H said:
My house went up by approx 50k since I remortarged. Do you think that has affected my financial position?
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This thread has in the title "RE-MORTGAGE" at the very start of it. The clue is in the name there.
If the value of your house goes up 50k, yes nothing happens overnight captain obvious. We are talking about when you come to re-mortgage, your LTV will have dropped, which as you said yourself can affect the mortgage product offered to you.

So you have both agreed and disagreed with yourself, in the same thread.
 
Mercenary Keyboard Warrior said:
Its increased your equity, ie the value of your assets.
Its lowered your LTV.
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Which since I'm not remortgaging, it has had no effect in my financial position.
jaybee said:
This thread has in the title "RE-MORTGAGE" at the very start of it. The clue is in the name there.
If the value of your house goes up 50k, yes nothing happens overnight captain obvious. We are talking about when you come to re-mortgage, your LTV will have dropped, which as you said yourself can affect the mortgage product offered to you.

So you have both agreed and disagreed with yourself, in the same thread.
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When I made the statement I was replying to a post saying that the value of equity you own is higher as the valuation is higher (which is true).
If the valuation has already been provided and your rate decided (based on LTV), how much equity you own in the house is irrelevant, unless you sell.

You already said "I've said so myself" (in relation to remortgaging), yet you are arguing as if I haven't, just to score whatever points you think you are scoring.
 
M1k3H said:
Which since I'm not remortgaging, it has had no effect in my financial position.

When I made the statement I was replying to a post saying that the value of equity you own is higher as the valuation is higher (which is true).
If the valuation has already been provided and your rate decided (based on LTV), how much equity you own in the house is irrelevant, unless you sell.

You already said "I've said so myself" (in relation to remortgaging), yet you are arguing as if I haven't, just to score whatever points you think you are scoring.
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I am not really sure how you define financial position.
As an accountant I would say that finding out your assets are now worth £50k more than before for most people is a significant change in financial position.
 
M1k3H said:
Which since I'm not remortgaging, it has had no effect in my financial position.

When I made the statement I was replying to a post saying that the value of equity you own is higher as the valuation is higher (which is true).
If the valuation has already been provided and your rate decided (based on LTV), how much equity you own in the house is irrelevant, unless you sell.

You already said "I've said so myself" (in relation to remortgaging), yet you are arguing as if I haven't, just to score whatever points you think you are scoring.
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But this thread is about re-mortgaging. LTV is relevant if you re-mortgage and/or sell. Your financial position is better if your house value goes up.

I've had more clear conversations with drunk people who's native language is not English, than some of the posts in this thread.
 
fastwunz said:
Yep when a surveyor visits your property to perform a mortgage valuation, there is a lot more involved than you may think. Measuring is important as the surveyor has to write a physical report after their visit comparing your property to others that have sold within a relevant distance that match the attributes of your property as closely as possible. This then allows the surveyor to come up with an accurate valuation of your property based specifically on comparable evidence - it has absolutely nothing to do with personal opinion and there is a high amount of detail involved. It is to the banks that the surveyors are ultimately responsible should they over value a property without sufficient comparable evidence to back it up. Ignore what an estate agent says - a surveyors valuation is based on specific and demonstrable market evidence and will provide the lender with a much more reasonable and technically true market value.

a lot of people are facing high interest rates at the moment and are trying to remortgage for as high a value as possible in order to lower their LTV - I’m afraid many are getting a bit of a reality check given what has happened with the market since good old Lizzy came along and completely wrecked it. Anyone who tries to market their house at 2022 prices needs a slap around the face with a wet kipper.
Click to expand...
Out of interest, what happens in the case of a house where there's nothing to compare it to? E.g. It's 100's miles from the nearest house, or it's a unique house (think grand designs sort of thing) , or a house has had so much work done on it it's incomparable to neighbouring homes that have recently sold.
 
NotAGolf said:
Out of interest, what happens in the case of a house where there's nothing to compare it to? E.g. It's 100's miles from the nearest house, or it's a unique house (think grand designs sort of thing) , or a house has had so much work done on it it's incomparable to neighbouring homes that have recently sold.
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I would have thought that the main thing that matters is that the bank/mortgage lender are satisfied that the value matches close enough to what you are buying it for so that they are protected. If there is a massive mismatch then it will affect getting the loan. Otherwise they have methods to come up with a value for almost any house and yes it could be that one is so unique it is different. Someone will pay what they feel it is worth anyway.
 
NotAGolf said:
Out of interest, what happens in the case of a house where there's nothing to compare it to? E.g. It's 100's miles from the nearest house, or it's a unique house (think grand designs sort of thing) , or a house has had so much work done on it it's incomparable to neighbouring homes that have recently sold.
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There is always ’something’ to compare it to - these situations are incredibly rare but with sufficient justification can be sorted fairly easily
 
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