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Mortgage house valution surveys

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    #31
    thanks

    yeah i've asked for a full structual survey, awaiting the report was just notified that the valuation came back exactly as per sale price hence the original question

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      #32
      Originally posted by filthy1980 View Post
      thanks

      yeah i've asked for a full structual survey, awaiting the report was just notified that the valuation came back exactly as per sale price hence the original question
      It's a number tested in the market and keeps everyone happy.
      I suspect there is no reason to argue with the sale price unless the valuer thinks it is outside his judged range.
      Everyone's value estimate is generally +/- at least £10k or several %.
      Why tell the vendor they've taken too little, or the buyer they've paid too much, if the agreed price is within 2 standard deviations of your guesstimate?
      When you've owned the house a few years, if you paid slightly over the odds generally does not matter.
      I suspect I paid a bit (maybe £10k? in £180k) over the odds for our house in 1996, but it would have cost a lot more to wait and its small beer in house terms now.

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        #33
        Originally posted by wysiwyg View Post
        In / around London +10%/year is not strange.
        Perhaps, I'm in Colchester and the crazy price increases hadn't quite reached out that far when we bought but they were heading that way (we were looking in Chelmsford to begin with).

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          #34
          Originally posted by filthy1980 View Post
          thanks

          yeah i've asked for a full structual survey, awaiting the report was just notified that the valuation came back exactly as per sale price hence the original question
          Great news - you should receive your offer shortly and hopefully exchange of contracts shouldnt be too far away as long as the solicitor is happy with their enquiries.

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            #35
            Originally posted by vetran View Post
            only +£70K in a year
            You know the general public are in trouble if contractors pull such faces over these numbers.

            Comment


              #36
              Originally posted by The_Equalizer View Post
              You know the general public are in trouble if contractors pull such faces over these numbers.
              it was to wind up Mauve Monkey

              However it comes to something when your house 'earns' about the same you do even as a permie.

              wait till we add the 5th bedroom & the two ensuites.
              Always forgive your enemies; nothing annoys them so much.

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                #37
                Originally posted by TheCyclingProgrammer View Post
                According to that website, our house value is £337k (we bought it for £301k a year ago). Consider me skeptical.

                Of course, if it really was worth that much we'd almost be on 70% LTV.
                Originally posted by wysiwyg View Post
                In / around London +10%/year is not strange. Mine is *apparently* at +25% in 2 years. A bit scary TBH
                I wouldn't be skeptical - the market has gone ballistic over the past year, to the point that many property investors are now placing bets on when the supposed 'crash' will occur.

                We bought a house 12 months ago for £250k and are selling it now for £340k - yes +36% in one year - and it has been rented out at £1k/month net profit during those 12 months. (tax calculations all ready and lined up for payment btw )

                The full structural survey indicates a couple of problems, but we'll sort those. The valuation came in fine, which did surprise me because usually the surveyors will be skeptical of big, fast price increases. But looking now in this area, it's actually very difficult to find a 3 bed house for less than £360k even.

                Frankly, yes I am shocked at house price inflation this past year. I think it will abate, but the market isn't yet slowing down at all.

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                  #38
                  Regarding our improvements, they are numerous but I'm not sure which ones will add value, which is why I'm not sure whether it will be worth getting anything more than the standard lenders survey (they aren't going to come inside and look at our improvements are they?).

                  We've certainly increased the saleability of our home but that's irrelevant as we're not interested in selling, just reducing our LTV.

                  In the past year we've pretty much refurbished 80% of the house (re-plastered throughout including all the hideous upstairs artex ceilings, new skirting/architraves, redecorated throughout, new internal doors, new flooring and carpets), gutted the old leaking downstairs shower room/toilet and had it completely refitted with a good quality shower and enclosure and concealed toilet, replaced all the old radiators in the house (most of them), had new valves fitted and a new combi boiler installed, brand new composite doors on the front and back of the house, boarded out the loft to add storage space, fixed numerous issues raised in our survey and other overdue maintenance, partly wired the house with CAT5e and hard-wired 5.1 speaker cabling in the lounge, the list goes on.

                  If we were trying to sell the house I think we'd sell it quickly but of all the things above the only things I do think add some value are the shower room refit and new boiler. I have no idea about any of the rest of it. We've probably spent between £15-20k on improvements. The only rooms we haven't touched as yet are the bathroom (next year maybe) and the kitchen (still in pretty good nick, just needs a lick of paint). We also intend to gut the back garden and have it properly landscaped and add my garden office which will no doubt add value but not before our mortgage deal is up.

                  If we could get it valued at £340k I'd be very happy! I'd love to get the estate agent who sold it to us in the first place back but I'm not sure he'd believe that we're selling up. Looking at local advertised prices there is definitely an increase across the board but more like £10-15k for similar houses to what we were viewing before.

                  Comment


                    #39
                    Mortgage Valuations

                    The purpose of a basic mortgage valuation is to confirm to the lender the property is worth what you are paying for it so that if you default they can sell the property and get their money back. This means that you may of managed to buy a property £100,000 less than market value but the survey, in the majority of cases, will only confirm the purchase price. There are a few occasions where they will confirm if there is damp or movement etc. affecting the value of the property.

                    They will value the property based on comparable evidence in the area (properties sold and completed in the last 3-6 months) the valuation can be appealed on this basis as well, you cannot just put any value you like on an application and expect the surveyor to agree.

                    It is likely due to the current market that properties will have increased in value but, again, is largely dependant on where you live.

                    It is also likely that your property will of increased in value if you have completed works to the property, for example an extension. This does not include £20,000 on a new kitchen or bathroom, unfortunately, that can be put down to taste and could be ripped out by the potential buyers. It is also wise to remember before completing works that there is often a ceiling price on the road or area so you may not increase the value of your property by as much as you think.

                    For remortgage applications, provided your valuation doesn't differ wildly from the housing prices index, it is likely that they will conduct a drive by or desk top valuation


                    I hope this helps

                    Comment


                      #40
                      Boring. Can't see anything interesting about watching tennis. Apart from Serena's bottom anyway.
                      bloggoth

                      If everything isn't black and white, I say, 'Why the hell not?'
                      John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)

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