18:54 PM, 27th November 2013, About 10 years ago 33
I operate in what I think is fairly straightforward way; buy a distressed property, add value, get a valuation, mortgage and then buy the next.
Recently I finished a 3 bed semi that I paid £60,000 for, I spent around £15,000 on the refurbishment and valued the finished product for around £100,000.
I let the property for £500 pcm and was hoping to get roughly £60-70,000 back on the mortgage.
When the valuation came back it was for £65,000 which left me a little shocked. I disputed the valuation and discovered from the tenant that no surveyor had been. When questioned they said a desk top survey had been done and that no visit was required and then backtracked when I pointed that they’d mentioned the decorative condition of the house.
A run down 2 bed terrace on the same street was sold for £75,000 and coupled with the low purchase price of my own, appears to have provided the surveyor with enough information to give a valuation rather than actually go and conduct a proper inspection. This can’t be right surely?
Anyway the mortgage company isn’t for moving and are offering a loan of £39,000.
I’d be very interested to hear from any mortgage brokers or other landlords who have come across a similar problem and what they did about it.
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