Re-valuing house for remortgage

[brickwall]

The initial message was deleted from this topic on 06 August 2024 at 21:42

[Sarnie]

You would in most cases need to move lenders to get a fresh valuation carried out as current lenders will either continue to use your purchase price or will apply House Price Index value fluctuations, neither of which are usually in line with the current sale market value of a property as it stands today.

[Jockman]

Sarnie said:

You would in most cases need to move lenders to get a fresh valuation carried out as current lenders will either continue to use your purchase price or will apply House Price Index value fluctuations, neither of which are usually in line with the current sale market value of a property as it stands today.

Agreed but worth the exercise as a desktop valuation is usually free. Does OP have anything to lose?

Would it be advisable to instruct a valuer on the lender's panel to carry out a valuation or would this be a waste of money?

[brickwall]

anonymous said:

[redacted]

I mean, clearly if the bank re-possessed it then you'd expect they'd realise a lower price than in an open market sale. But my understanding that typically banks don't 'discount' the value to account for this - at least that's not what happened when I took out my mortgage last time.

[towser44]

I was/am in a similar position to the OP here. Bought my house in December 2012 with a mortgage of £62,050 and a purchase price of £73,000, so 85% LTV. It too was a distressed property and was a quick sale as it had been repossessed. I don't know what they valued the property at originally, as the bog standard report I got just stated £73,000 purchase amount.

Originally it was on a 2 year fixed rate with the Halifax. When the fixed rate ended (I actually switched 3 months early without incurring a charge as it was allowed), as we had done a fair amount of improvements I considered asking with regards to a revaluation, but I didn't and I was still able to select a product available in the LTV band 60-75%. Now, I switched products but stayed with the Halifax and they didn't do a valuation visit, so they must have automatically done a desk based valuation or taken account of the property's true value from when I bought the property, because I definitely didn't pay enough over the first 21 months to reduce the LTV by 10%.

[Lady_Beefmaster]

I think if you're not quoting a silly value then some lenders will do a desktop valuation.

We brought our house in 09 and got a good deal with it. Overpaid the mortgage a bit and when our fixed rate came to an end we chose a different lender,. Quoted them what we thought the house was now worth which did put us at a better LTV, the lender said that we didn't need a new valuation as they agreed with the value. Think with the likes of zoopla etc these days a lot of lenders will use that and look at what's on the market on Rightmove etc.

[Craikeybaby]

brickwall said:

Short version:
Is it possible to get my property value 'marked to market' when I re-mortgage, to get a lower LTV deal?

Longer version:
I bought the property in late 2014, with a 75% LTV mortgage. Semi-distressed sale, so I got a cracking deal.

To use sample numbers:
- Let's say I bought the place for £100k
- Mortgage after 2 years has been paid down from £75k to £69k
- Local house price growth has been 5% over 2 years at best.
- BUT: Multiple identical properties in the same block have sold recently for £115k.

If my property is valued based on (good) comparable market sales, I could get a 60% LTV deal.
But, if my property value is just 'marked up' 5% from the (distressed) price I bought it at, my LTV is 65%...

How do I go about getting a valuation at the higher point, which would allow me to squeeze under the lower LTV threshold?

I did exactly this.