Remortgage new build- value estimation

[Mammatoacutie]

Anyone know how lenders gauge the value of a new build?

We purchased in phase 1- house will be 2 years old when we come to remortgage.

Development currently in phase 2 and same house costs 30k more to purchase

Assuming there is some kind of premium on a brand new house- is there a rough guide to go by?

If anyone has been in this position would be grateful to hear your situation

thanks

Are people selling places from your phase?

If so there will be evidence of asking prices as a start and, if any have completed then of actual prices at completion. A valuer, knowing what identical or very similar places in the next phase are going for, can apply a know approx adjustment so as to match yours for age, state etc.

Otherwise can you find similar properties in terms of room count etc that would be comparable.

IME professional valuation will start with comparables.

I think you're right about people buying a new build paying a premium, though I don't think is more than 3-5%, again they'll adjust for that.

TBH unless you're intending increase the loan amount when you remortgage then, even if you were on 95% LTV at purchase, other than the effect on monthly repayments, I don't think anyone remortgaging 2-3 years down the line will have an issue.

We have just remortgaged for august- valuation wasn't as high as the same new build property just being sold (last on our phase) the desktop valuation gave a silly high amount (which we took with a pinch of salt!) the mortgage provider sent a valuer round.

The value increased by £70k in 18 months so was happy with that!

Just depends on the lender I think

I don't really know tbh. We bought our new build house for £365k, we had ported a mortgage for part of the sale so needed to refix at the 18 month point (this was just before the mortgage economy went to shit last year). Zoopla was putting on some crazy prices like £450k, similar new bed houses were selling in the area for around £400-430k, but the bank only valued us as £378k which was quite a bit lower than their house price index calculator, so I assume they do work it out differently for new builds. Couldn't be arsed to challenge because the rate was still very good and was happy with the LTV bracket, but next time if I feel the valuation is lower than what houses are actually selling for here we will challenge (if you can?!- or ask for a proper valuation, it was only a desktop one, no one came).

(By similar new bed I don't just mean the actual new builds, but similar styles from earlier in the development on the second hand market)

We bought our new build 6 years ago for £282,000. 3 bed double fronted semi in Hampshire with 2 parking spaces.

We had our RICS survey last year (April time) to remortgage and the RICS valued the house at £315,000 so £33k increase in 5 years.

We then had it valued at the end of last year by an estate agents and they valued it as £340,000.

There are still houses being sold by the developer on the estate, pretty much the same style as ours but for £375,000 so I believe you definitely pay a premium for new.

@USaYwHatNow of course there has to be some kind of premium, you're buying everything brand new, you'd expect to pay more for a refurbished house over a doer/upper, your house is 6 years old now and the ones being sold have brand new electrics, boiler, plumbing with a warranty etc. It's no good comparing to the new builds getting built now. Sounds like the RICS survey and estate agent are roughly aligned.

That does seem a very minimal increase for 6 years though, considering the boom in 2020, especially for the SE too.

@jfshu just to be clear, I am not dissatisfied with my circumstances or the figures in my post. OP was asking if there was a premium attached to buying new so I was simply stating that there is?

@USaYwHatNow apologies I see what you mean, as stated in my post they certainly seemed to factor it in our valuation from what I could see but would love to know to what extent, is there a percentage?