Homeowner loan with no valuation?

[Yam950]

Hello everyone. My husband and I have applied for a loan to add on to our crrent mortgage with our current lender. We are renovating and lots has gone wrong and been ncovered so we need the money to get it finished. We googled property prices and found or home appeared to have 85% LTV in it for the amount we require. The mortgage adviser was great...we told her we werent convinced our home was worth more than the googling showed but we were approved and she said a surveyor would call and arrange to come round and value the house. That was saturday....i called today and she said that she wo0uld find out what had happened. She then called me back and said they had made a decision....and had valued our home at only £1000 more than we paid for it. We have already compelted asome renovations so surely this cannot be right? And how can they value a house without even looking at it?? We wanted to borrow £20k, but she said they can only loan us £7k now which wont be nearly enough.

She said we can appeal and pay £65 for a surveyor to come out but i dont want to lose £65 if we are kidding ourselves. Any advice?

[Dotty50]

Some valuations are called 'A drive by', which is exactly what happens and they make a decision based on the area and their knowledge and experience.

 

It's not unusual for valuers to downgrade, especially at the moment with the housing market the way it is but this doesn't help your dilemma unfortunately but even if you spend £65 (which is quite a low quote IMO) to get a more thorough valuation, it would be unlikely that they would increase it enough to get the amount you are after.

 

Did you google sold property prices?

[Yam950]

Thanks Dotty. We googled and have just done it again to chek the postcode in our area. Zoopla is thorwing back a 1 bed terrace on our street at £59K.... ours is a 3 bed detached over 4 floors (3 roomed cellar) with seperate outbuildings which used to be a stable with a hayloft and it was valued at only £98k......whereas a 3 bed detached up the road in the same first half postcode sold for £186K a couple of months ago....it makes no sense to us??

[Dotty50]

You could try speaking to the valuer and putting that information forward and ask what basis they made their decision on and see if will they look at it again.

[Yam950]

Having run another check on rightmove its showing houses that are nowhere near as big going for over £115k!!

[Yam950]

You could try speaking to the valuer and putting that information forward and ask what basis they made their decision on and see if will they look at it again.

 

How would we find out who the valuer is? Would we need to speak to the mortgage adviser??

[Dotty50]

Your mortgage adviser should be able to get that information, although it can depend on who the application was with but as it's with your existing lender, I don't see any reason why you can't approach them directly but I would ask the adviser in the first instance.

[Yam950]

Just an update. We paid the £65 yesterday and the surveyor has just been round. He didnt say much apart from it was an unusual house lol, and quite a bit larger than it looks. He was also surprised we have stables as it isnt obvious from the outside as we are gated in. Fingers crossed

[Dotty50]

Hopefully £65 quid well spent Yam!

 

Let us know how it goes, the valuers comments sound promising and proves that drive by's do not always suffice!