Remortgage House Value

14
Found 9th Jun
Hi,

Anyone got experience of how your lender values your house when you remortgage.

I bought my house 15 years ago for £74k, I have not done any major improvements done. It’s in Perthshire Scotland so not a major property hotspot.

My property is very unique (a very old converted property so there is nothing like it in the surrounding area)

My mortgage lender has said it is worth £155k when I asked to borrow more.

Do lenders typically over value a property so you borrow more or do they not take that kind of risk.

It seems a lot for my house to more than double in value since 2003?
Any experience?
Thanks
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Bought mine in 1999 now worth 3 times+ what I paid then, in Manchester area and fairly well sought after at the moment with properties being snapped up as soon as they go on the market.
When I return mortgaged this year they valued it is ~£30k more than 2 years ago on a 200k and that was much the figure I came up with looking at the area etc. I would say it's a fairly accurate representation of what your house is now worth. I guess congrats on almost doubling your money
lenders will tend to be cautious so they would tend to undervalue your property for a remortgage if anything rather than over value. it depends on how much you want to remortgage because if you already have a big equity in the property then they will be more laxed about valuing it accurately, but if the remortgage is a significant amount against the equity you already have then they will want a surveyor to carry out a valuation survey on the property.
100% increase in 15 years isnt unrealistic. My house has tripled in value since I bought it in 2002 for £245,000

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Edited by: "chocci" 9th Jun
Bought mine 3 years ago and next door (similar house) is up for 80k more (410k), house opposite sold for 90k more than what I paid recently.
Just remortgaged 3 flats, 2 are identical in the same development. The identical ones were valued about 3 weeks apart by the same surveyor and were valued at different values (not sure why) they obviously look at land registry records (or similar website) and make their valuations on similar properties in the area that were recently sold. All 3 in my opinion were undervalued by about 10-20% compared to those actually on the market.
Not all mortgage companies will send out a surveyor, although in my case Idon’t remember having an actual surveyor come out to view upon purchase. They were there about 10 mins, took some photos of the outside, internal room measurements, asked about service and ground rent charges and length of lease. They just want to know that the property is in good order.
They tend to value on the cautious side, but don’t get caught up with the actual valuation figure, it’s only the amount they’re willing to further advance to you that really matters.
Edited by: "Toptrumpet" 9th Jun
In my experience, lenders under value properties when it comes to re-mortgaging, gives them a little leeway should something disastrous happen and they have to repossess the property.

If you doubt there valuation you could always have it valued by an independent surveyor, at your cost though.

It sounds like your surprised though by there valuation, if it means you release the equity you are looking for, and aren't looking to move, then its not a big deal whatever they value it at though..?
chocci6 h, 41 m ago

100% increase in 15 years isnt unrealistic. My house has tripled in value …100% increase in 15 years isnt unrealistic. My house has tripled in value since I bought it in 2002 for £245,000[Image]


Which is why young people are struggling wages simply are stagnant!
The answer is simply they use tools not much different to what you have internet searches etc and there experience in the market BUT they’ll tell you one price then a surveyor will visit your house. She or He will either go in or just do a simple drive by. Recently In our case it was £10K more in the surveyors eyes than the mortgage lenders
Edited by: "ASongOfFireAndIce" 10th Jun
ASongOfFireAndIce4 h, 1 m ago

Which is why young people are struggling wages simply are stagnant!


I’m not that old lol. Bought the house when I was 20. Appreciate your comment content though
ASongOfFireAndIce8 h, 11 m ago

Which is why young people are struggling wages simply are stagnant!


Young people I see are struggling as they spend all their money on luxury items, holidays etc. I was lucky to have a holiday every 5 years as my mortgage came first

Mortgage payments are little different in real terms than 20 years ago.


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Edited by: "chocci" 10th Jun
That graph if I’m reading right 1990-2000 was less mortgage vs income which kind of what I expected! And Luxury’s I agree with most younger folk have Just Eat on tap so there’s an example. However the one major difference is getting a 10% deposit most 2/3 beds within a 10 mile radius of us average £180,000! That’s fact from nice areas to ex council homes all fetch £180,000! Who has £18,000? People are stuck renting! With agency’s taking over company’s everywhere I know and people in there 30’s and 40’s I know still on minimum wage! And that’s the difference back in the day you could also get 100-105% mortgage!
Maxwell0201176 h, 0 m ago

I’m not that old lol. Bought the house when I was 20. Appreciate your c …I’m not that old lol. Bought the house when I was 20. Appreciate your comment content though


Same age as me! I just feel sorry for the next generation trying to get a property!
chocci11 h, 26 m ago

Young people I see are struggling as they spend all their money on luxury …Young people I see are struggling as they spend all their money on luxury items, holidays etc. I was lucky to have a holiday every 5 years as my mortgage came firstMortgage payments are little different in real terms than 20 years ago.[Image]


Well young or old house prices have gone up more than double when minimum wage was around £3-4 pounds a house in my local area 2 bed Was easily around 8k-15k these days wages is around £8 per hour and the same houses are 45k-65k so the difference is alot more than previously.
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