(Remortgage) Mortgage company valued house lower???

[Anxiousmummy1187]

We’ve recently had a 40sq metre extension added to our home. We are one of 2 homes on the road that are the exact same inside. My neighbour remortgaged and they said they said it was worth 235 so I said ok ours is bigger so we’ll say 250 they’ve only come back and said 225 not sure how they actually work out this. He came in with another guy and I think was measuring or checking for damp idk they kept using a tool against walls 😂 We
Had one done last year before extension and the guy said yep that’s fine no problems in remortgaging with that value so we thought oh we undervalued it ourselves. Last year a guy came and looked round and said he goes by how he thinks we’ll decorate it basically potential of the home. We’re still renovating so I’m wondering has this guy done it on the pool of the property but he can see the high spec of the rest of the house that we have done so far. So now this time they’ve said it’s not worth what we think. I def think it is especially if next doors was worth more as like I say we’ve doubled our floor space downstairs, and we have 2 bathrooms next door only has one? We were hoping to get our ltv down. Any ideas? Thanks

Do you need to borrow any extra money that will be denied as a result of the lower valuation - if not, don't worry. This is purely the bank's estimate, and it's a back-stop for them so they know what they can expect if you default on the mortgage and they have to take back the house and sell it. However, if / when you come to sell, this will have absolutely no impact on what the estate agents suggest you put the house on the market for.

We recently had an extension that added a bedroom and adjoining showerroom, and extended our kitchen below. The mortgage valuation came in £50k lower than what the house next door had sold for 3 years previously - yes, that had a 5th bedroom but its in the loft with low-ceiling height, and they've not got the extra ground floor space either. Just seen a similar semi come on the market with no extension and in need of refurbishment at the price ours was valued at. So I'm positive they were wrong, but it doesn't make any difference as we're not selling anyway.

Go with another valuer and you can provide your neighbours valuation as evidence (if this was recently done,otherwise it might be irrelevant)

I don’t want to say exactly what I do but I know a lot about valuations and they should not be valuing based on decoration. It’s based on size, number of habitable rooms, construction type, structure etc. You say you have 2 bathrooms but are they complete? For example just having an empty room that will become a bathroom won’t count as a bathroom. You say you’re renovating but do you have all the electrics sorted, if you don’t a room will be classed as inhabitable. If the house isn’t complete they should have given you a current value and a value for when the work has been done.
Can you say which company the valuer was from? There is one in particular that seems to be down valuing a lot at the moment

Our bathroom upstairs toilet is in but bath isn’t as it’s a room being renovated as we speak. So it wasn’t when they came. And it was natwest who went them out. everyrhing else is habitable