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!

Did you check what kind of valuation you were getting when you booked it? For our recent mortgage we had to choose and the £500 option didn't include a report. The bank told us that they only really use the postcode and local selling data anyway, even if you do pay extra for someone to actually look inside so we didn't bother and went for the £200 option. It's all about risk. The valuation was significantly lower than what we wanted to pay because no house on the road of 6 victorian houses had sold in 60 years. The person managing our mortgage just had a chat with us about it and made sure we understood the valuation, then we got the mortgage we wanted. They could see that the local data was too limited and although the valuation wasn't changed we had no problems with the mortgage.

CeibaTree
I was comparing one of smaller and cheaper ones with one that op was saying was more similar to her houses valuation which is a lot bigger.
They look similar but the square footage is so much bigger

@User65412

Did you check what kind of valuation you were getting when you booked it? For our recent mortgage we had to choose and the £500 option didn't include a report. The bank told us that they only really use the postcode and local selling data anyway, even if you do pay extra for someone to actually look inside so we didn't bother and went for the £200 option. It's all about risk. The valuation was significantly lower than what we wanted to pay because no house on the road of 6 victorian houses had sold in 60 years. The person managing our mortgage just had a chat with us about it and made sure we understood the valuation, then we got the mortgage we wanted. They could see that the local data was too limited and although the valuation wasn't changed we had no problems with the mortgage.

We only had one option and the surveyor did come to the house, so she did see it 'in flesh'.

@SunscreenCentral

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.

1325sq foot is not tiny..

@Lancrelady80

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.

The House was ruined when we got it. And it was priced at 550. The bank sent their surveyor then and they accepted the price. I was there when she was 'assessing the house' and she was aware of work done.

Just because another house is on for a lot more doesn’t mean it’s worth that or someone would get a mortgage for that value. I would suggest that the mortgage company will be keeping an eye on a possible housing price crash.

You either get another mortgage company in or keep on same deal and don’t remortgage

@SnipSnapGiraffe

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.

Yeah, Zoopla prices it at 50k higher then them.. still, no explanation.

@Sittingonabench - I judge her inexperience based at her silly comment about the age of the house, which frankly left me quite amused. She is young, it's a fact. She is inexperienced, it's a fact based on her comment. I am all for female empowerment but I will not blindly support somebody, who cannot do basic homework.... regardless of age or sex!

I disagree with the conservative comment, I find valuations for remortgaging tend to be much more liberal compared to what you'd actually get (in my experience at least). And it's unusual for you to have to pay for the valuation, usually lenders are keen to have you as a customer in the remortgaging process and pay for valuations and legal fees themselves.

Currently doing probate in family home. Estate agents valuations came in very high. But sister commissioned proper valuation. V detailed and took into account local market and other house sales. That came back almost £200k less than the high ate estate agents. Rationale was square footage / size of plot rather then finish of house.

[quote Klaudiagal]@Sittingonabench - I judge her inexperience based at her silly comment about the age of the house, which frankly left me quite amused. She is young, it's a fact. She is inexperienced, it's a fact based on her comment. I am all for female empowerment but I will not blindly support somebody, who cannot do basic homework.... regardless of age or sex![/quote]
I don't know anything about the valuation of your house but these comments are really harsh. Based on her getting the age of the house wrong you feel you have the right to belittle her in this way. As far as we know she only made one mistake which is something we all do when we are starting out, in any career. I am sure she has done more than basic homework to reach the point she is at in her career.

If you are not happy with her valuation go elsewhere but there is no reason to call a fully grown woman with a professional career a girl. That's really patronising.

@SwedishK I agree. The OP is being v harsh on this surveyor. A quick google brought up her house and it’s easy to see why the surveyor, who is only acting in the best interests of the bank has come up with the value she has.

[quote masterofthechef]£700k for a 4 bed

That would buy you this
search.savills.com/property-detail/gbedrseds170285[/quote]
Can I have this please.

I wish someone would call me ''young girl''.

So it’s either an ex council house or by a council estate? That will affect the valuation, even if it is a 4 bed house in Teddington. That’s a matter of fact, regardless of how amazing or modern the inside looks.

OP’s attitude towards the surveyor are extremely patronising. Chances are this “girl” is way more experienced than OP!

Must be wrong! 2 bed flats are £400K there!

It's quite an increase in 2 yrs tbh for that area.

What are sold properties selling for as the one for sale isn't necessarily a true representation of sold price.

I live in a nice part of SW London - 700k for a flat but there is a a small council block and they tap out at 550k so it does have an impact.

Update: I have talked to the surveyors office (Legal and General) and they agreed that the valuation seems very odd.
I have right to submit Post Valuation Query (PVQ) which they are most happy to consider and have to come back to. The only thing is that Natwest (as a broker who commissioned the valuation) must provide the form to me so I can gather evidence to support my claim. And Natwest is refusing to do that.
So basically - my legal right is to query the valuation and Natwest is physically stopping me to excersize it. It also means that keeping lower valuation means more money to them, so they have an interest in doing so.
Nice, eh?

@bathmatty

I live in a nice part of SW London - 700k for a flat but there is a a small council block and they tap out at 550k so it does have an impact.

Yes, I live in a nice, leafy SW London part, and 4 bedrooms end terrace houses on street close by go by over £1.5 m. So I am not disputing it should be matching them, I am merely saying the the house on my estate next door is for sale for £700k so I need evidence why she thinks it is irrelevant.

@bathmatty

It's quite an increase in 2 yrs tbh for that area.

What are sold properties selling for as the one for sale isn't necessarily a true representation of sold price.

I had 3 market valuation from different sources and they go from 680 to 735.

Yes OP but the 5 bed house in your estate SOLD for £459k.

There are 2 identical houses in a near where I live. One is on for £800k the other for £1.3m. I really don’t think a surveyor is as interested in what someone decided to persuaded estate agent to list it for

I definitely think it's right to query but my point was just because next door is on for 700k doesn't mean it's worth that. One of my neighbours put theres on over last summer for 1.5m (a 300k increase), they didn't sell it for that though.

@MsHedgehog

So it’s either an ex council house or by a council estate? That will affect the valuation, even if it is a 4 bed house in Teddington. That’s a matter of fact, regardless of how amazing or modern the inside looks.

OP’s attitude towards the surveyor are extremely patronising. Chances are this “girl” is way more experienced than OP!

4 bed house in Teddington goes for 1,5 m easily. So yes- I did take it into consideration.
Judging a house age by bricks looking nice is a very stupid thing to say - so yes I will be patronising to any 'specialist' who using this kind of language and is massively wrong in her judgment at the same time!

That's my point @Jangle33