James
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Registered: 1st Jun 02
Location: Surrey
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When you come to remortgage your property, one of the things they ask is the value of the property.
Is this the price you paid when you bought it or the current value? Because I'm hoping that when I come to remortgage in just under a year that the value will have gone up by about 10%.
Thanks.
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James
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Registered: 1st Jun 02
Location: Surrey
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BTW I'm assuming it's current value but just wanted to check.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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Current value which you can wing to a degree but they'll normally appoint someone to value it to cross-check your figures.
Guy when I did mine was only there five minutes, just asked me how much I put it down for and ticked and signed his sheet when I told him.
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John
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Registered: 30th Jun 03
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10% in a years time is a bit optimistic is it not? You'll be lucky if it's still worth the same.
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James
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Registered: 1st Jun 02
Location: Surrey
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quote:
Originally posted by John
10% in a years time is a bit optimistic is it not? You'll be lucky if it's still worth the same.
Flat in the same block with the same floorplan and slightly less modern than mine has just come on the market at £40k more than I paid. Obviously there's nothing to say it will sell for that, but it does suggest I got quite a good deal.
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Ian
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Registered: 28th Aug 99
Location: Liverpool
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10% in a year isn't out of the question assuming you bought it under value in the first place.
My brother did exactly that, cheeky low offer with no chain, guy went for it, value 12 months later was more. Think his was over 10%.
Although I do think market hysteria and no one stopping to check probably played a part in that. Not sure you could pull it off these days.
The good thing is you don't need to actually sell it, so while actually putting it up for sale you'll get some real offers and market response back, if you're just doing it for re-mortgage purposes its basically your word against that guy and really, if they're on any sort of bung they'll want the business.
[Edited on 18-07-2012 by Ian]
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James
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Registered: 1st Jun 02
Location: Surrey
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I don't think I paid much under value, if anything.
It's right on the stamp duty threshold which means it's either worth £250k or about £280k, it's not worth anyone paying anywhere in between because of the stamp duty increase. It's just a case of convincing someone that it is worth the upper of those 2 values, which the other guy in my block has obviously managed to do.
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John
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Registered: 30th Jun 03
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I'm curious about this because I'll be needing to do it in April, think it'll end up being worth the same.
That is optimistic then James, he's probably completely unrealistic. He obviously knows that it's 250 or nearer 300 and he's trying the nearer 300 first.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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Stamp Duty threshold is probably skewing the maths a bit.
What is the reason for your increase then, just that the other guy is trying it?
Remains to be seen whether it goes for that.
I wouldn't have said you're going to that amount of appreciation in 12 months unless you could make a point about you getting it cheap, which if you don't even think you did, that may be a weak case to make.
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James
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Registered: 1st Jun 02
Location: Surrey
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There's a similar flat in the block also on the market, it's got a slightly more favorable floorplan (although not by much), and that's £45k more than mine.
That one is marketed by Foxtons though who are notorious for their inflated sale prices.
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James
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Registered: 1st Jun 02
Location: Surrey
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Just to clarify - by the time I come to remortgage, it will have been 2 years since I bought rather than one year. I just have one year left.
My only real justification is that similar properties are on the market at much higher prices. I know that doesn't necessarily mean anything, but surely it should count for something.
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John
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Registered: 30th Jun 03
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Have any sold recently that you can check what they have actually sold for?
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James
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Registered: 1st Jun 02
Location: Surrey
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There has only been one since mine and that sold for a lot less than mine, but it was probably a 1 bed. There are a few different layouts in the block.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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Of course it does and its worth trying.
The benefits to your LTV and subsequent choice of products are very clear.
Worst that can happen is the guy overrules you.
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John
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Registered: 30th Jun 03
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So do you apply for a re mortgage, they send someone out and you can speak to him at the time?
Even a seemingly small increase could make a difference to the LTV and therefore the rate.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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When I did it, firstly they wrote to me with a list of products so for example 5% with no fee, 4.5% with 500 quid, 4% with a grand etc.
Went to the site and worked out what LTV bracket they were putting me in, looked at the next one down and did a little spreadsheet to see what I'd need to value the flat at versus what I still had outstanding.
Phoned them, told them my figures, made it sound like I was picking them out the air when in fact they were entirely deliberate, guy came out and agreed with all my homework.
Good thing for me was that my Land Registry records are about 10 grand cheaper than my neighbours because I got the bare bones flat and organised carpets, appliances etc. on my own, opted out of their mortgage advice, legal assistance etc. plus a bit of haggling, so when it came to valuing mine I was already 10k in favour just on that, never mind what the market was doing.
Still needed to spend the money like, it just didn't go via the builder so it now looks better for historical interest.
Any tricks like that you have, do what you can.
You can of course try it with a number of lenders, that should widen your odds a bit.
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Dan
Premium Member
Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
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Im in a similar boat, i bought my place for £140k and it was ex rental, up for 160, which was about the going rate based on other similar on the estate.
Bloke desperate to sell as he was going bust, so took my offer.
Im now out of my fixed deal, so can move without fees etc, but current bank value it at same asi paid, but other properties selling for £160k+ and they dont have the massive bedrooms i do.
Do i go to other comapnys and say, its worth... £160k, or do they decide and send someone out.
Not got a clue whats the best way to attack it.
It means i can go to 75/80% over the 85% which works out at like 50 a month saving
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Nismo
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Registered: 12th Sep 02
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Use mouse price to get the values on your road.
http://www.mouseprice.com/house-prices/
[Edited on 18-07-2012 by Nismo]
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stuartmitchell
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Registered: 24th Apr 04
Location: Kirkliston, Edinburgh
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Hi mate. We just remortgaged our gaff. I just valued it at the same price as house prices in Edinburgh have been pretty stagnant. Nobody came from Nationwide to value it themselves. They just drove up, looked in the windows and ticked a box apparently  I'd say go with the 10% uplift!
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John
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Registered: 30th Jun 03
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Mouse price shows what it sold for but I'd take the valuation with a pinch of salt. Says mine is worth about 13% more than I paid, which it's not.
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Rob_Quads
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Registered: 29th Mar 01
Location: southampton
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Mouseprice looks to be about as accurate as Zoopla and that's not very lol. They look very over prices estimations.
its valuing the property 3 doors down at £197k and they have been failing to shift it for £180k
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Daniel_Corsa
Premium Member
Registered: 21st Apr 04
Location: Wigton, Cumbria
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I was wondering same, my fixed deal is up in Dec, I'm hoping the updates and ££££'s spent have actually added some value so can get a slightly better rate!
Doubt will even be 5%-10%
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P1CK4D
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Registered: 19th Jun 06
Location: Around Essex Somewhere
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Excuse my ignorance, but why do you re-mortgage? If they value your property more than what your original mortgage was agreed at, wouldn't that mean you have more to pay? Im confused
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AndyKent
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Registered: 3rd Sep 05
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quote:
Originally posted by P1CK4D
Excuse my ignorance, but why do you re-mortgage? If they value your property more than what your original mortgage was agreed at, wouldn't that mean you have more to pay? Im confused
It's worth more but you owe less = better LTV = better rate. You only remortgage the amount needed to clear the outstanding original loan.
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James
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Registered: 1st Jun 02
Location: Surrey
User status: Offline
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Update. Had it revalued yesterday for my remortgage. It was valued at 11% more than I paid for it, 22 months after I bought it.
Happy days.
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