mortgage valuation - do they do this?

[BoyMeetsWorld]

Does anyone know how mortgage valuations work?

Do they come back with their value for the property or is it just a yes / no to your offer?

If it's a no, does it give you any grounds to go back and renegotiate or is that it, mortgage withdrawn game over?

Your valuation survey will state their opinion on value based on comparable evidence and property condition.
If there was an issue with the property then they may advise that a retention is placed on the funds, this simply means the price is redueced due to essential works to an estimated value or that the vendor carry out the work and the full or stated value amount can be released.

If the reason for down value is due to comparable evidence alone then it would be for your agent to renegotiate your sale in accordance with the surveyors valuation.

They wouldn't withdraw the mortgage unless there was serious issues an the property was deemed Un-mortgageable

Depending on the lender if it's a straight forward val they have been known to just approve and go straight to your mortgage offer.

They come back with a value. One of the things it's based on is what other comparable houses have sold for, based on land registry figures, which are around 6 months behind. This can cause problems if you're somewhere where prices are rising fast.

You can make a case that it should be higher, and the estate agent might help with this if you ask, but if the valuation is lower than expected the first port of call would be to go back to the vendor and let them know. If they're in a rush to sell they may accept a reduction/meet you half way.

Thank you.

Hmmm so if its based on previous 6 month values, will they not take current major market influences (eg Brexit) into account?

We're almost hoping they will so can get a realistic 're-valuation and renegotiate at that point.

They just value the house comparing it to other ones that have sold in the area etc
Be careful though that this is not the same as a survey that it won't pick up any problems with the property - unless they are hugely major. So it won't pick up if it needs a damp proof course or new roof etc which may cost you money to repair that you may want to add on to your mortgage. A survey will do that
Mortgage valuation is really that if you can't pay your mortgage and the house is repossessed will the bank get their money back

I'd find it highly unlikely, a surveyor can only determine using factual evidence, they may be more cautious going forward with this in mind but as There will be no immediate change due to Brexit a current valuation should not be affected.

Oh rats :(

We are planning on having a full survey too

So do you want the property valued less than your paying?

Yes ideally. We have offered high as there was lots of interest & considering current market. With Brexit in picture, if the market crashes it is definitely too high. Ideally we would still go ahead but at a lower offer.

Just wait and see how it values, if your having a full survey read it throughly, there may well be may advisories of which would then give easy grounds for a price reduction