It may surprise
you to find out, a lender will tell you the valuation
for mortgage purposes does not necessarily confirm that's
the properties actual worth. The purchase price (as per
your contract with the seller) may be more or less than
the ''mortgage valuation''.
Valuations are
not a precise science and are basically someone's
personal opinion at that moment in time only.
That's all it is.
Taking the main
point above, that it is just a personal opinion
of an albeit qualified RICS
valuer, you must not lose sight of what a lenders valuation
is and use that fact to your advantage anytime you need
to.
Marketing prices
from an Estate Agent are not valuations, everyone including/especially
the Estate Agent will tell you that. A valuation for mortgage
pusposes can only be carried out by an authorised RICS
valuer and could/do often vary considerably from a ''Marketing
Value''.
There are tens
of thousands of cases every year, all over the UK, of
lenders valuations coming in at huge differences, for
the same properties just days apart. That is because its
a personal opinion and not a calculation based on anything
other than 'research' and a personal view
of what that specific valuer believes at that
particular moment.
If you disagree
with a valuation report and the valuer refuses to accept
your input (so long as your input is reasonable) - sack
the valuer and engage another, it really is that simple.
If you are absolutely sure your valuation ought to have
come in at the price you thought and ''a valuer'' decides
its something less than that - take issue with his/her
judgment. Don't just take it on the chin - challenge it.
Our experience is considerable, we
have had £205,000 and £315,000 for the same
property within the same week (The Lock). We have had
£125,000 and £155,000 for the same property
within 2 days (The Bayley). Another was £335,000
and £395,000 in the same month because one valuer
disliked rooftop penthouse with velux windows and the
next valuer did not see that as an issue (Wilmslow). Make
no mistake, valuations on any property is a guessing game
and you can play this game to win; to get what you want.
The rule is: If your lender agrees with your valuation
- you win, game over!
Peoples opinions
are there to be challenged, not accepted just because
'they' say so. Drive your valuation and make it work for
you. If either your valuer or your lender does not accept
your position (supported by comparable's) - sack them
and get another lender.
Start with a
new lender. This time, why not engage your own valuation
report? and where that meets your requirements, send that
to your lender. Whilst your lender may not accept your
valuation report, it could well have some influence.
If you have
been offered a mortgage DIP with us and proceeded on that
basis, we will assist you in the process of getting the
correct valuation for you, as we could have already had
other valuation reports in the same building and we can
refer to them for you. If your lender cannot accept that
info, we will just change lenders.
Previous
position click here
