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  • Mortgages & Finance

    Any tips to get the valuation I require?

    Hi All ,

    Have read with interest the recent thread about the RICS down valuation and wondered if I could pose my scenario to you all for feedback .

    Last year I bought a city centre apartment with a view to live in as a residential and then later convert to serviced accommodation once I had completed a refurb . 

    I have now finished my refurb and had planned to go ahead with the next step of Change To SA later on but am now considering doing it sooner . With the scenario and numbers listed below I wondered what your thoughts were as to whether I am likely to achieve the required valuation.

    I appreciate there are many factors they will put into their valuation but with the valuation fee being £500 I’d rather get some more thoughts before needlessly wasting cash that could otherwise be spent on a nice weekend break away :-)

    Date of purchase: Oct 2018
    Purchase price: £290k
    Refurb cost circa £45k

    Previous sales history 
    Date of previous purchase: March 2001,
    Previous Purchase Price: £285k 

    Required valuation : £367k

    Comparable recent sales

    100 m away there is a block of new build apartments with a similar finish to mine and those of a similar size to mine have sold in the last 6 months  for £395k , £380k, and £410k. These property’s all have a single parking space whereas mine has 2 and mine has roughly an extra 100sqft of floor space . All are 2 bed/2 bath as is mine .

    I need to achieve a valuation of £367k to get the required LTV for the mortgage I’m looking to secure . 

    On paper it looks like it would be a reasonable valuation to achieve however I’m conscious they may just do the simple maths of purchase price plus refurb and that is their valuation . My argument is - property bought for only £5k more than paid in 2001 (market growth according to rightmove in my area of Cheshire is circa 140% in this time ) - extra floorspace than comparable plus extra parking space .

    Any thoughts would be much appreciated if anyone has had any similar scenarios with valuations.

    Thanks again all for the endless supply of useful information this site generates! 

    Chris 
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    Your Valuer will give you a Valuation and at the end of the day you will have to go with his valuation

    You pay the fee and you hope it works the way you want it too

    THE MAN WITH THE CLIP BOARD is KING not you

    Been there done that and its not nice when the cards dont fall the way you wish and its not nice being told NO when you have paid £370.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Hi Chris,

    Have you checked to see if your lease allows sub-letting?  Most leases prohibit this type of activity.

    Also, you will need a specialist mortgage.

    Please forgive me if you have this covered.

    As to valuation, its very hard to tell and it will largely depend who you get on the day.  If you provide the valuer with comparables and a file containing all the receipts and talk him through the refurb, then you may stand a chance of getting the valuation you need.

    £367K is a strange number.  I would go for £380K and then you have a bit of lee-way for down-valuation.

    ​Hope that helps, good luck, and let us know the outcome.

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    Hi Vanessa ,

    Thanks for the reply . I will definitely look to put  together some information and hope this supports my valuation .

    Yes , very much aware of the issues surrounding leaseholds . I purchased this property from the freeholder on the grounds he would change lease terms to allow short term letting . The amount of people I hear who fly by the seat of their pants and let in apartments with no permission or do so on BTL and resi mortgages is frightening and I fear this will be the downfall of the sector.
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    I am in agreement with Vanessa.  If you go to the valuation and support your figure with your comparables from the new build block plus a schedule with costings of the work you have undertaken, then this will help.  We find valuers tend to be more focused on the purchase price plus cost of works to drive the valuation figure, if the property was acquired within the last 6 months.

    Good luck!

    Jeni

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    why dont you apply to a lender that offers no fee and free legals and valuation, that way if you cant get the valuation you wanted its cost nothing

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