So I have just received my valuation report for mortgage purposes back from the surveyor. I have had experience of a significant down-valuation for a different property we had offered on earlier this year which resulted in the sale collapsing so I was anxious that this may happen again.
However, happily the Valuer has indicated that the house is worth what we offered. However, the slightly unusual element (at least to my mind) is that it states that the rebuild cost is significant higher than the agreed purchase price of the property. The agreed purchase price is £975,000 but the rebuild cost is £1.2million. The valuation is with the underwriters for consideration and hopefully final mortgage approval (AIP already having been obtained). Is this big difference in purchase price/rebuild cost something I should be concerned about? Has anyone else experience me a survey which says the rebuild cost is so much higher than purchase price? Do you think the underwriters should be bothered by it?
I would have thought that provided that insurance is obtained which is sufficient to cover the cost of the rebuild (which I think is a usual condition of the mortgage anyway) that this should be ok from the bank’s perspective?? In case it makes any difference the bank is NatWest.
Thanks!