Mortgage valuation lower than sold price, has this happened to anyone?

[MrsBungle]

I'm anxious about something that hasn't even happened yet!

We had 3 estate agents round to value our house. One said to put it on around £180k, the other said £190k and the other said £195k due to us having the only 4 bed on the market in the area.

House went on last Friday night and we had 3 enquirers by Saturday morning. On Monday the first viewer offered full asking price and we accepted.

When we remortgaged 18 months ago the valuer valued the house at £175k. It's now occurred to me that a mortgage company will not think this house is worth £195k and this would cause us a big problem as we need that to be able to buy the house we really need.

The problem is that our house is the only one of its kind in the little estate. Most are 2 and 3 bed small houses. Ours is 4 with 3 reception rooms and an outside brick built 'outhouse' which is heated, electric etc. There aren't any reasonable comparisons really. A few hundred metres down the road they are building a new estate where the 3 beds are priced £195k and the 4 beds are priced £235k.

I,m not sure what I am asking here! Do you think I will have a problem? Has anyone had this problem and appealed? From what I've read appeals are highly unlikely to go through.

Any help or advice or experience to share would be very much appreciated.

I think there's 2 things that are potential problems here- neither of which you can do much about so there's not much point in worrying.

Firstly, surveyors are going to be more cautious if your buyers need a high loan to value mortgage as there's not much wiggle room.

Secondly, surveyors like easy to value properties with direct comparables, it there are no directly comparable properties they may choose to err on the side of caution.

Appeals don't tend to work as, if there were direct comparables to base an appeal on, then it's unlikely a low valuation would occur in the first place.

If your valuation of £175k last year was a true valuation, ie it wasn't the case you needed at least £175k and they confirmed that but it was potentially worth more, and the market where you are isn't particularly fast paced then £20k increase in a year might be ambitious.

Well....I think you're a bit optimistic buying something and then relying on a top dollar price for your house.

Other than that, wait and see. It'll probably value up.

Just to be clear, I've not bought anything. If we end up not getting as much as we've been offered then we will have to buy something cheaper - not the end of the world but I would really like the one that I'd need the extra money for.

Thanks for the replies, they are appreciated.