My Buy to Let properties are being undervalued?

by Readers Question

9:33 AM, 16th August 2016
About 2 years ago

My Buy to Let properties are being undervalued?

Make Text Bigger
My Buy to Let properties are being undervalued?

Has anyone else been finding that valuers are undervaluing properties for remortgage purposes. They seem to have gone from one extreme to the other. undervalued

I am currently remortgaging 4 properties one of which I know I could sell for 90k easy, and a valuer has just said 72k!!

There are no houses in this area for less than 80k and they need serious work mine has just been redone throughout. Another I have a bungalow worth 150k on the market and a valuation came back at £135k. It seems completely random, but as if they have some agenda.

Very frustrating when trying to achieve 75% equity. I remember the glory days when they just asked what you thought it was worth and agreed with you!

Alex



Comments

Neil Patterson

9:38 AM, 16th August 2016
About 2 years ago

Hi Alex,

It will be interesting to see what others have experienced recently, but I am not aware of any particular lenders requesting a percentage down valuation from surveyors specifically for remortgages. Unless these are just desk top valuations?

Qualified Surveyors normally operate within a margin for error of 5% based on comparable sales in the area. Therefore, if you can supply comparables to the lender from past experience you should be able to get the valuation increases.

However, let us know if you have tried this already and it hasn't worked.

H B

10:07 AM, 16th August 2016
About 2 years ago

It is possible that they are doing valuations based on likely auction sales proceeds rather than a traditional sale through an estate agent.

After all the only time the value of the property would matter is if they have to repossess.

Harlequin Garden

11:29 AM, 16th August 2016
About 2 years ago

I have, with a couple of new builds - both same size in same block and next to each other, using two different mortgage companies one came in a £50,000 less than the other (who valued at what I paid), this was pre 'brexit'.

Ghalib Boutany

12:00 PM, 16th August 2016
About 2 years ago

Hi, I am going through a similar thing, I have put an offer on a BTL property and was accepted, just for the valuer to come back saying it doesn't worth that much, and the property is not ready to be tenanted, which is completely wrong as it is carpeted , secure, clean with all services working,I never had that before and always the valuation came back satisfactory. Is there way of challenging the valuers report?.Thank you

Claire Smith

12:17 PM, 16th August 2016
About 2 years ago

We got a low valuation - the surveyor based it on single buy to let rates which made it below bricks and mortar valuation or our rent from students.

Paul Mullally

12:33 PM, 16th August 2016
About 2 years ago

I have a family member who works for a Bank dealing with high value properties and high net worth individuals. He has 3 clients in the last few weeks looking to either to re-mortgage or re-position their borrowing and all have had their valuations come back significantly lower than they expected and previously achieved.

This is all Post Brexit and it reflects a lack of confidence in the UK property market and economy. The valuation companies are extremely worried about litigation against them should the market crash and the bank comes a calling!

Interest times ahead I suspect!

david porter

12:44 PM, 16th August 2016
About 2 years ago

The surveyor is more afraid of the bank than he is of you.

Harlequin Garden

12:56 PM, 16th August 2016
About 2 years ago

This has happened to me a number of years ago as well - I challenged but it took a long time and a lot of raised blood pressure to do the donkey work of finding comparables for them.

What was mentioned to me - and I in a way I do agree - a lot of these surveyors/valuers are from out of town and whilst have a working knowledge based some of us are dealing in values that are way outside their now personal experience (i.e. they live in the suburbs in a 3 bed semi they bought for £250,000 same in London is a good 3 x that).

The've finally come around to HMO's and student let as being better bets than so called 'professional' so perhaps it takes time and yes banks are nervous creatures.

Paul Mullally

13:19 PM, 16th August 2016
About 2 years ago

Reply to the comment left by "david porter" at "16/08/2016 - 12:44":

That's exactly what I meant! They don't care about the clients money.

philip ellis

13:20 PM, 16th August 2016
About 2 years ago

Likewise, last year I remortgaged four properties to purchase a fifth. Embrace valuation was at least 10% under what I had recently paid to purchase them in a very poor condition the year before. Rewire, new central heating, bathroom and kitchen clearly had added nothing to their value. Neither had the 5% uplift in house prices in my area.

The low valuation protects the lender from the unlikely event of having a fire-sale, so clearly getting the low valuation is an instruction to the surveyor. Yet when you're buying, he's happy to value it at the purchase price so you don't pull out of the purchase.

I smell a rat !!!!

1 2 3

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Open Letter to Landlords and Shelter

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More