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If there are directly comparable properties in the same area, they should have some influence on the valuation figure for your property. Valuers are being cautious at the momentd due to the political and economic uncertainties. If you have a situation like this and you have directly comparable properties as evidence, you could go to the lender and challenge the valuer's figure if it comes in low.
I don't think there has ever been consistency with Surveyors and Valuers tbh. I've just had a house done for re-mortgage purposes that was refurb'd to a high standard and the surveyor came back 5k less than an exactly comparable property (in terms of beds/size etc) recently sold a few doors down. Go figure that one... You could argue the point but I don't think you'd win. Particularly today where I believe they are being cautious due to outside influences. Brexit seems to get blamed for most things.
A couple of years back the same thing happened to me on a house I made a great profit on. The surveyor/valuer came back with a ridiculous value (in my opinion) for the re-mortgage. The house was sold for 25k more than his estimate, not very long after the valuation had taken place. I've had five houses surveyed for re-mortgaging and can only say they are all over the place valuation wise. Supply/demand/timing/corporate pressure/opinions who knows what goes on in their heads.
I'm sure more experienced people on here will have their views but for me it's all about lack of consistency.
Perhaps I can offer some comment as a valuer. This question comes up for me and I have seen similar queries on PT before. Basically there is no definitive answer. each case will turn on it's merits.
The valuer should always reference transactional evidence (comparables) in determining value, but I'm afraid that a very recent transaction of the property at a lower price in recent months will inevitably raise questions. I have been asked to value houses purchased just a few weeks before the valuation that have had little more than a coat of paint and the owner is expecting £10k increase in value. Whether value has been added will entirely depend on the works that have been done.
You can't generalise that valuers are nervous, but lenders will ask questions. The valuer has to report recent transactions, so the lender will know about the recent sale and will need to know how valuer has been added.
The value stands on the day a property is valued. Where completion of the loan takes an unusual amount of time (several months) then most lenders revert to us and ask if the value still stands. We take an objective view at that point as to whether the market has changed and report accordingly.
If you make contact with a bank valuer prior to their instruction, most banks would not then allow that valuer to do a mortgage valuation; they regard it as a conflict of interests, however innocent the instruction. Valuers are generally only allowed to do the job in isolation and any prior contact has to be declared.
Also bear in mind what the lenders ask the valuers to do. Some banks ask for a valuation subject to a short marketing period (e.g. 90 days) and this inevitably depresses the value. This is not the valuer's fault! That's just the lender's policy.
Most of my time is now spent as an investor so I understand the issues you have. However, my valuation experience is that many investors have unrealistic expectations. I have just refurbished a house myself and I am fairly confident that the £10k+ spend has not been added to the value. The area is such that £10k is a massive jump in prices (the house was habitable at the start of the works) and unlikely to be achieved. I did it so as to continue renting it out at the higher end of the local market.
A final few points - don't go for the cheapest valuation. Frankly there is not enough money at the lower end to dwell for too long on a job. Not to say it shouldn't be right., but just a fact. Make the valuer's life a bit easier - I know it's hard to sometimes get access with tenants, but try not to mess the valuer around with access. Hand them some comps if you have any (I certainly don't mind) and make sure that you have all your paperwork in order (planning, building regs, tenancies, EPC, etc.). If you can get the property tidy, then this helps - it is only psychological, I know, but if a valuer has a better "feeling" about a property, they may be more optimistic.
There are some great products out there for bridge to let purposes though?
You can refinance it within the usual 6 months, and its just one application for both the bridge and the mortgage after.
Obviously if you are flipping properties this is not for you but as for refurbishing a BMV place to then let out, its perfect, especially as the same valuer can see just how much of an improvement you have made and possibly agree beforehand if your planned works are going to add the right amount of value realistically.
Financial Consultant working with Property Tribes Financial Services.
Always cover your debts, don't leave them for your loved ones to pick up. Ask me how - firstname.lastname@example.org 07500 871209
We like the product and so do our clients that have been recommended it, I haven't heard anything negative about it. Shawbrook also offer something like this but as they are a bit more specialist, they usually have a higher rate than Precise, but will lend where Precise may not.
As for the Precise rates, a LTD company can get a 2 year fixed rate for 2.99%, that's not bad when it comes to LTD companies who usually circle the 3% mark anyway. Personal name Clients may well find a better mortgage exit rate option but a lot of standard lenders will not allow a remortgage in the first 6-12 months so it may end up counter productive that way.
I am in the NE so my area may be worse than other areas for down valuation
Personalty I came to a conclusion that trying to get money out of a property was just a let down I never got what I wanted from a revaluation
So I learned the best way for me to raise deposits was to save a Deposit from Income
since I took the Bull by the horns my Business has got stronger and stronger
I understand that for some Landlords trying to save a deposit is really an none starter If you you haven't got the ability to save deposits
I use good cash deposits from saved income and I use Capital and repayment
My own feeling is if you can go down the road I use now Its really money making money and you grow slower but you get
You end it getting better deals along the road because your LTV is falling with every payment
Its not the get rich quick road but it is the road I follow now
Nothing worse than doing all the work and paying a Valuation fee and you find the Property will not value up
I used to get frustrated Now I dont
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.