Valuation for Remortgage

[Valuationhelp]

We are hoping to remortgage early next year to extend our house.

Mid terrace houses in our street that are much more modern inside than ours (but nothing special) are going for 15-30k more than what we paid for our end terrace with much more space.

We’re currently doing a lot of the work to the house that needs done mainly in order to make it a nicer place to live and hopefully up the value for a remortgage. We bought the house as a project.

So when we go to remortgage and it asks for value can we just put in a hopeful figure of around what the others have sold for or maybe a bit more and then when it’s valued they’ll obviously tell us what they think. So hope for the best type of thing? Affordability is a non issue so it all comes down to value. Obviously the value will affect what we can borrow on top of what we need to pay off the mortgage.

Hope this makes sense as I’m not sure I’m explaining myself that well. I know we could probably pay someone to value it but that seems a bit pointless when they’ll want to do their own valuation anyway.

For reference we’re talking

When I remortgaged in the past, the bank had a number in mind. I imagine it was based on sold prices and price trends in the area. On the occasion that the house was worth more (we'd just refurbished it), we needed to go through the whole process and a valued came round.

Valued=valuer

We remortgaged with Nationwide. They sent out their own surveyor! He did more than we did when buying the place. He suggested a figure £20k less than the one we had suggested but sold prices are totally inconsistent at the moment so we had no idea what it might be valued at.

Thanks both.

My issue is before you get to the valuation stage they’re going to want a number. How much is your house worth/how much do you want to borrow? So when were at that point do I just say the number we’d potentially like it to be and then they’ll send someone out and we may or may not get that number? It’s more the first part I’m unsure of.

They will send out some one to value it .

You can give a figure based on what is happening to values around you. They will still send some one out though if they need to .

You can give whatever figure you like but it is likely the lender will check a system that values houses and then often send a valuer round. That person usually does a drive by valuation, but some will be more thorough and measure and check the condition of the property.

Thank you. That’s good news.

Whether they send someone out to value or not will depend in large part of what loan to value loan you are seeking.

90% and they’re going to look pretty closely at everything.

40% and they’re going to be relaxed enough that whatever they’re loaning you is safe.

We’ll probably be going to 90% as need as much as possible for our extension

When we remortgaged, we used the figure on Zoopla for the initial figure - which is based on market movement and what has sold over a period of time.
It was agreed when the valuer came round.

I think the banks have a computer system that gives a ball park finger based on what you paid (from land register) and average % increase in your area. If you want them to use a higher figure than that you will need to justify it, so take along lists of work done, comparable house sales info etc.

I would always estimate higher, rather than lower. The surveyor/valuer works on behalf of the lender, not you, so will rarely value up, though will often value down.

Thanks all. We’re really hoping for £80k so will say we want £85k maybe and hopefully we’ll get as close to the £80k as we can! I don’t see us getting any more than that unfortunately because we can’t do the kitchen or bathroom and they’re what’s really letting it down.

They’ll obviously know what it was valued at when we bought it so I’ll make a list of what’s been done when we go to do the remortgage.

Thanks all!

It's not that straight forward. Let me if you want to understand bit more. I can arrange a call.
Thanks

Hey
I’m going through the same process.
I just had an estate agent come round value the house.
That being said when the valuer came over they ( as others have mentioned) values it lower than the market. Which coincidently went in line with the Zoopla value.

My recommendation from my experience is to put in a value you think it’s worth and let them value it.

Hope all goes well

Thanks Dikapak. Was the EA ok coming round knowing you weren’t planning to sell?

When we remortgaged I assume they used one of the indexes (including the NW one) as they always value our house a little higher than what it would achieve if it was being sold. Our house is ex-council but in the immediate streets you have equivalent sized houses selling for about £100k more which brings the whole average up for our road. I doubt our current bank even looked at recently sold figures as they valued ours £30k more than a similar one had sold for 3 months earlier. Ofocurse this valuation worked in our favor with regards to LTV and getting a lower interest rate.

Look at sold Rightmove places. You can't estimate a figure on what it'll sell for once you've completed the works but what is the likely value right now. Ultimately the mortgage company will decide if you're right or not. We were borrowing 75% of the value and the surveyor was very thorough.

When we remortgage there will have been work done so we won’t be estimating based on work to be done. It will be current value. We’ll need to estimate/guess based on other house prices.

I spoke to the recent bloke that came around as the previous person back in November had valued it at 300k which was WWWAYYYYY below market value (we live in a strange place, expensive, very few detached bungalows which is what we have, and those that are around were valued much higher - I asked him if he worked in this area regularly, which he did, I explained and asked what his thoughts were - he came back with a figure of 435k ... which is still a bit shy of what I'd expect (a similar bungalow with similar land parcel was sold recently for 475 and their house was very dated, we have new bathrooms and newly decorated, granite kitchen etc )... but that was ok for our remortgage to renovate
I'd be wary though that they'll come in a bit lower than you expect - well that's my experience anyway
Good luck!

We started to remortgage this year and didn't realise we needed to have a figure in mind for the value. We gave an initial figure then decided to get an estate agent out to value it as we'd done some work and it is an unusual property for the area.

We just told the estate agent we were trying to decide whether to extend or move to bigger house and they were very happy to pop out to see us to value it as its in their interests as a business to showcase what they can offer you or if you have a good experience and are impressed with them then word of mouth works in their favour! I'm sure any local agent will be happy to come out if you suggest moving is one option. . .

Upshot was the agent valued it higher than our own estimate so we upped our mortgage request (like you we wanted to use equity to improve). The surveyor then did come out from the mortgage company and gave a valuation mid way between the one the estate agent and we had first given them but we got more money out than we would have had we stuck with our original figure