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!

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

I know exactly where you mean, and I do think there are some houses in some locations, that no matter how much work you do to them there is a price ceiling that they won't go over. For example this went for £562k last year, and although it's not a big house, it's a brilliant location and it's in a great school catchment, but the houses on that estate will never get above a certain price I don't think. Contrast it with a pretty Victorian terrace like this one which is about the same metres squared in size and only 400m away from the first example and you'll see what I mean.

I can’t comment on your house but what you have spent on it is of little consequence to the valuation really. A friend just sold a smallholding in Wales for nearly £400k. It had been valued at £85 - 100k. It is a mess inside, has covenants preventing development and is full of Japanese Knotweed. It needs at least £100,000 spending on it. The money they’ve spent will never be recouped, therefore irrelevant to the valuer.

Not been hard to find your house on Right Move OP... a 5 bed in your road went for £479k. Sounds like you may have spent too much money on it sadly - pretty clear that close to council estate etc will impact house price massively.

CeibaTree that has a much smaller square footage than the ones for sale at nearer £700,000

@Jangle33

Not been hard to find your house on Right Move OP... a 5 bed in your road went for £479k. Sounds like you may have spent too much money on it sadly - pretty clear that close to council estate etc will impact house price massively.

Yes, that particular house has been a multiple occupancy house and in horrible state and not really 5 bed - I know, as it was on the market when I was buying so I saw it. Other than that there is not much in terms of comparable sales on this road. I appreciate that few roads down you can get a Victorian on similar footage for more, but that would be around 1m, and I am not shooting that high:)

Yes but a house at a valuation is only worth what the lender says it’s worth. They will look at local market data. You have a ceiling on your house value.

@Jangle33

Yes but a house at a valuation is only worth what the lender says it’s worth. They will look at local market data. You have a ceiling on your house value.

The house on the same estate is now on for 699k and has (slightly) smaller footage... again, as few rightly commented, this size of house in other parts of Teddington would be going for closer to 1m and above, and I don't expect that - and 700k is well within what is expected here..

@StillCoughingandLaughing

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

I'm sure some people would be tempted to do that but I live in Durham where there are four beds www.rightmove.co.uk/properties/88501339#/ and there are four beds! www.rightmove.co.uk/properties/89756566#/ (short walk between these two houses)

@Bythemillpond

CeibaTree that has a much smaller square footage than the ones for sale at nearer £700,000

Yes I know it was just a comparison of two houses the same size on two different roads close by each other - one of which is on the OP's estate - you'll see the Victorian terrace has gone up enormously, but the estate one hasn't..

[quote masterofthechef]£700k for a 4 bed

That would buy you this
search.savills.com/property-detail/gbedrseds170285[/quote]
I god, considering!

@StillCoughingandLaughing

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

Yup, already happened:) and it is sad that London is so bloody overpriced!

And there is no reason why being built in the 70s or the 90s would give houses a different value. Neither were golden ages for quality construction.

@PickAChew

And there is no reason why being built in the 70s or the 90s would give houses a different value. Neither were golden ages for quality construction.

Agree, my point is that being a qualified surveyor you would be able to know which period property is from, especially that mine is a classic 70s build

But unless a house on the same estate sells for near what you’re thinking your house is worth then I don’t think you’re going to get far with suggesting the surveyor is wrong.

OP presumably you just just stay with same mortgage company and not remortgage - it’s not compulsory!

When we remortgaged we had two valuations six months apart. One came in at £1.5m, the other £1.8m. The market hadn't gone up that much and we had done nothing in between.
When calling a house they should look at comps from the area. And yes justify it. But it's not a science.
I was selling a house and had competitive bidders. The mortgage company valued it quite a bit lower. My argument was if a house is worth what someone (or in this case two) people will pay for it, how can it be worth less?

@Jangle33

But unless a house on the same estate sells for near what you’re thinking your house is worth then I don’t think you’re going to get far with suggesting the surveyor is wrong.

OP presumably you just just stay with same mortgage company and not remortgage - it’s not compulsory!

Hi, yes, I hear you. The trouble is that there is no similar house on estate that has sold, apart from one that is now on market for 700k (and a bit smaller, with massively smaller garden). Still, I am not trying to change valuation (although I would so so wish;) but I find it extraordinary that they refuse to explain it. If it was free one, then maybe, but not when they charge £500..

i thought when remortgaging/borrowing they always undervalue its not the same as putting it up for sale

I grew up in Teddington. Mum passed away five years ago, we sold her three bed (Edwardian) family house for 730k a year later. I have just checked and the current estimated value of it is 956k.

I don’t know how anyone can afford to buy property there.

Did they maybe just pull the value off Zoopla? I got a valuation before selling my flat. This was a local estate agent though. He ummed and ahhhed and then gave me the EXACT figure listed on Zoopla.

@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.

Agreed young women get a hard enough time in the industry as it is. I’m sure everyone else went into their professional roles with the ability to decipher everything on sight. OP the woman was likely making chit chat. If the age of the property was a factor in valuation this would be done from records of the house. You feel it is undervalued -fine. But jumping to the conclusion the young inexperienced woman surveyor is incompetent seems a bit of a reach.

CeibaTree
Yes similar age/style of house but the more expensive one is just under 50% bigger

@Bythemillpond

CeibaTree Yes similar age/style of house but the more expensive one is just under 50% bigger

I think you are missing my point, the two houses I compared - on Bushy Park Road and Borland Road - are both around 87 sq metres. I'm not saying the OP's house (which was not one of my examples by the way) is directly comparable in value to the smaller one on the same estate, just pointing out that houses in that estate are not rising in line with other house prices in Teddington for whatever reason. We moved out of Teddington a while ago because of the insane house prices but I dream about moving back the one day, so keep my eye on the local property market :)

Seems silly it's so much less than market rises would suggest.

However, the reason it might be so far away from your expectations could be the type of things you spent out on - they needed doing but wouldn't necessarily add value as far as a buyer or valuer was concerned, they would be expected. These for instance:

we insulated the house from outside, insulated the attic,
changed roof over extension (would anyone know?)
rewired,
changed Lino flooring into oak wood and porcelain tiles (potentially expected in this area, and if not then maybe just seen by surveyor as an adequate floor covering rather than something to push up price)
replastered walls and ceilings.

New kitchen, bathrooms and bifold doors I would have thought would obviously add value - but again, maybe surveyor just saw bathrooms, kitchen and access to garden rather than them being selling points?

Just my thoughts, could be v wrong. But certainly we were told insulation, plastering, rewiring was not going to add value, just stop the value from being pulled down by them needing doing, iyswim.

Ex-council house. wow 😳

So this is a house that was once provided by the state, to a family.
Sold by the state to probably the dweller of the time. And now it’s worth half to three quarters of a million and it sounds tiny. A council house.