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Is anyone on here a house valuer (for re-mortgaging) and can advise?

(2 Posts)
gabbybaby Mon 16-Nov-15 12:21:07

I had another thread on here yesterday, so this is a follow on from that one, about applying for a second mortgage in the middle of building work. We're wary about putting in any application that will be refused, so looking for some idea of how it will go before we submit an application (we would do this with our existing mortgage provider).
Can anyone comment, without knowing details of location and the actual house, on what it's likely to do to the valuation if we were to attempt to re-mortgage in the middle of work? Let's say house was worth £520k when we got this mortgage agreed a year ago. Prices have gone up, say 7%, in the last year. Once the work is complete, based on sales in the road and directly around, I would expect it to be worth around £700k in the current market. If we apply now and the valuation was done today, we have gained a bedroom and bathroom (in the loft) but the rest is a building site - we've lost a reception room and we currently don't have a kitchen. Is there anyway of estimating what a valuation is likely to come back with based on the numbers above, but without knowing the area and house? I don't want to put in an application that will be refused. we would have to estimate the value for a mortgage anyway, and I don't have a clue what to estimate it at in it's current state. If we can't do it, we'll take out an unsecured loan to cover the rest of the work, and then save the mortgage application until the work is complete, when we'll be more confident in the value, but it worries me that the loan we'll then have will affect our affordability, even though we'd be intending to clear them with the new mortgage. Advice please! TIA

namechangedtoday15 Wed 18-Nov-15 14:37:08

I'm not a valuer but in a previous life often have to review re-mortgage applications. I would think any application now would be refused if you're assuming that there has been an increase in value. I think most lenders would actually think given the state its in that its not actually worth what you paid for it (nevermind any more). This is on the basis that they assess it on the basis of repossession - if they had to sell it say next month (I know the repossession process would take longer than that, but for arguments sake) a lender would have to invest monies to get it in a state to sell, or else sell it at a lower rate on the basis that only cash buyers would be able to buy it (it is a condition of most mortgages that a property has a kitchen - if it doesn't, lenders will usually refuse any mortgage).

I think the loan would probably be a better way to go, and if its clear that part of the equity release is paying off the loan, and you meet the affordability criteria, it should be OK.

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