Unfair house valuation - WWYD?

[Klaudiagal]

We have bought a 4 bed property less than 2 years ago in Teddington for 550k. It was in a very bad state, but since then we insulated the house from outside, insulated the attic, changed roof over extension, rewired, changed Lino flooring into oak wood and porcelain tiles, new bathrooms, new kitchen, replastered walls and ceilings and put a beautiful bifold doors to patio.. according to property price index, the value of property went up to 588k (did not take into account any work we did), but in the meantime we had 3 estate agent valuations between 680k to 735k (this one last week).
As we are planning to remortgage soon, we requested property valuation from our current mortgage providers, for which we were charged over £500, and we estimated the property value at 700k based on previous valuations. They sent a 20-sth year old girl who obviously was very inexperienced (she asked whether the house was built in 1998, when it is built in 70s and previous surveyor even gave us an exact year based on the specific way it was constructed). I can add that the house is in Teddington 5 minutes from Thames and bushy park, so definitely not an area that decreased in value recently. We got valuation updated today to 580k!! Less than what property price index would suggest!!! And after all the extensive renovations we did.
I called the bank and asked whether they can request a reasoning behind going that low, especially that the house next door is on the market for over 700k, but they refused to do anything or provide any details behind this valuation.
AIBU thinking that since I paid £500 for this valuation, I should have a document showing the reasoning behind it?
What do I do now? Can I put a complaint? I think it is just a blatant incompetence OR bank trying to get more expensive mortgage out of me. Anybody can advice ? Mumsnetters, please help, I am just gobsmacked!

[LaurieFairyCake]

Remortgage and move providers?

I can only say that there is loads of caution around. I'm currently trying to get a mortgage (to see what I can buy next) and we've been turned down and my mortgage company don't know why and are going to have to go to the underwriter

[saveforthat]

Only the company that commissioned the survey can ask for the reasoning around it. Often there is a summary in the report of how the valuation was arrived at comparisons etc. Valuations for lenders are always ultra conservative. This is because if they have to sell and they cannot get what the valuer said it was worth, they can sue.

[Hfjshdhs]

4 bedroom renovated house in Teddington, I am genuinely shocked at how low your own valuation of £700k is. Surely it would be more like £900k+?! And definitely definitely not £588k.

[Eloisedublin123]

A valuation needs to contain the rationale behind his the valuer arrived at the value (I’m a valuer!)
Does your valuation contain no comparables and/ or rationale?

[Theonewiththecandles]

Estate agents valuations are always higher as the more it costs, the more commission they get!

The valuers have professional qualifications to assess your property and they do this for a living, regardless of how high or low the value of the property is.

Now, who's valuation do you trust more?
As you paid for the report you should be entitled to a copy of it. The valuer will have looked at usually 3 similar properties sold recently for comparison. You may be able to contest it, but you'd have to point out what was wrong with the previous comparison properties and provide your own recently sold ones.

[Anothernameanothertime]

Shop around for a better remortgage deal. Don’t spend any more up front, get costs wrapped into arrangement fee when you complete on new mortgage. Sounds like you’ll be able to get a much better loan to value (and rate) elesewhere. Expect you’ll recoup the £500 and more

[Merryoldgoat]

That’s bollocks. When I moved away from Tedders 6 years ago you’d struggle to get a 3 bed house for £700k then.

[loveisagirlnameddaisy]

I think you can challenge a valuation if you can provide evidence of the selling prices of other houses with the same spec as yours within the last 12 months.

[StillCoughingandLaughing]

How long before someone says ‘£700k for a four-bed?!?! That would buy you a mansion in [insert town nowhere nearby]!!!’

[Klaudiagal]

@Eloisedublin123

A valuation needs to contain the rationale behind his the valuer arrived at the value (I’m a valuer!)
Does your valuation contain no comparables and/ or rationale?

No, I got nothing at all. I called the bank and asked for it to understand the valuation, but got nothing from them. I am considering complaining to finance ombudsman as after paying £500 pounds for it I would expect I would at least have a right to have a look into it!

[FrankButchersDickieBow]

Remortgage is different than a valuation though. It goes on square footage, so you could have made your walls and floors gold, but the square footage is the same.

When we wanted to remortgage for improvements, the value was so much lower than what it would have been if it went on the market.

[Klaudiagal]

@saveforthat

Only the company that commissioned the survey can ask for the reasoning around it. Often there is a summary in the report of how the valuation was arrived at comparisons etc. Valuations for lenders are always ultra conservative. This is because if they have to sell and they cannot get what the valuer said it was worth, they can sue.

Yes, I did ask bank to request it and they refused. I appreciate that they are careful but going under i property price index value on a fully refurbished property is just laughable:(

[Klaudiagal]

@Hfjshdhs

4 bedroom renovated house in Teddington, I am genuinely shocked at how low your own valuation of £700k is. Surely it would be more like £900k+?! And definitely definitely not £588k.

I know, we were very lucky! The property is part of ex council estate (small, low rise and mostly private by now) hence the lower price - next to st Mark's church if you want me as a neighbour:)

[Morechocmorechoc]

We had ours valued after doing significant work and we specifically gave them property print outs and estate agent report and got the higher end valuation. Valuer told me they rarely go under what the estate agents say. I'd make a formal complaint, send your evidence in including written valuations from 3 Estate agents and request either a new valuer or your money back

[Klaudiagal]

@Honeybobbin

I've never heard of being charged for a valuation! Get in touch with other banks, they might actually want your custom!

I know, right? Just half a grand down the drain which for me borders on being illegal..

[Morechocmorechoc]

Disagree with Frank, we did no increase in square foot but price increase from 500 to 800

[masterofthechef]

£700k for a 4 bed

That would buy you this
search.savills.com/property-detail/gbedrseds170285

[Klaudiagal]

@Theonewiththecandles

Estate agents valuations are always higher as the more it costs, the more commission they get!

The valuers have professional qualifications to assess your property and they do this for a living, regardless of how high or low the value of the property is.

Now, who's valuation do you trust more?
As you paid for the report you should be entitled to a copy of it. The valuer will have looked at usually 3 similar properties sold recently for comparison. You may be able to contest it, but you'd have to point out what was wrong with the previous comparison properties and provide your own recently sold ones.

I fully understand it, and would be happy with 650 for these reasons - but not for 580! Highest valuation we got was 735-and I agree, perhaps it was pushing it, which is why we went for 700k.. I checked some properties next door recently sold and they are around 700k mark.
I don't see why they added only 30k up below the index - which is an objective measure AND ignoring over 60k investment into it!

[sipsmith1]

As a surveyor in their 20s who often gets people dismiss me because of my age and gender - surveyors have about 6 years training minimum before they qualify. YABU to dismiss her based on her age and gender. She is a woman, not girl, who will have received a high level of training.

Estate agents often over estimate values to get work and take lower offers. There is a way to challenge valuations, they will get other surveyors to do a valuation and the original must come within the range. Call RICS if you have a problem.

[Klaudiagal]

@FrankButchersDickieBow

Remortgage is different than a valuation though. It goes on square footage, so you could have made your walls and floors gold, but the square footage is the same.

When we wanted to remortgage for improvements, the value was so much lower than what it would have been if it went on the market.

Then there would be no need to see property at all! You give the postcode, they can see flor plans from previous sale, and bang! I am not being argumentative, but at least I deserve explanation from them?

[Klaudiagal]

@sipsmith1

As a surveyor in their 20s who often gets people dismiss me because of my age and gender - surveyors have about 6 years training minimum before they qualify. YABU to dismiss her based on her age and gender. She is a woman, not girl, who will have received a high level of training.

Estate agents often over estimate values to get work and take lower offers. There is a way to challenge valuations, they will get other surveyors to do a valuation and the original must come within the range. Call RICS if you have a problem.

I am dismissing her not because of her age, but because after 6 years of training she cannot see the difference between house built in early 70s and one built in 1998. She told me that bricks look new. REALLY? I agree with you, unfair if me bringing her age into my comment, but come on! This just shows lack of knowledge of basics!

[Bythemillpond]

The only time I had a young girl do a valuation for a mortgage on a flat I wanted to buy she valued at £0 because it had a tree in the garden no where near the property.

The valuers have professional qualifications to assess your property and they do this for a living, regardless of how high or low the value of the property is

I was selling my previous property, a thatched 16th century stone cottage with huge thick walls. The buyers surveyor was a young lad who said the property didn’t have planning permission so he couldn’t give a valuation on an illegal house

Surely if someone is qualified then they must have known that planning permission wasn’t around in 1576
Sometimes even with their qualifications they haven’t a clue.

[SionnachGlic]

Usually Bank valuations for mortgages are on the basis that only for Bank use & cannot be relied on by other persons which may explain why they are not sharing. Get your own independent valuation done & send it in.