[Misc] O/T Remortgaging advice

I am looking to remortgage my property in part to finance a buy to let purchase.

I have an agreement in principle and the details and our documentation is currently going through the underwriters.

Due to uncertainty in the market at the moment there are various properties around us that are not selling or being reduced. I am therefore nervous about the valuations that form part of the underwriting assessment.

I have 3 independent valuations from local estate agents that are all around the level we need to be at but am aware that estate agents price high initially to entice you onto the market.

I know there are some mortgage experts on here so hoping for a bit of advice. Should I forward these valuations on to the mortgage company prior to the official valuation? Does anyone have experience of remortgage valuations and how they are calculated?

Thanks

[MENTION=3887]Uncle Spielberg[/MENTION] is your man.

The property value is not the issue although they are being downvalued at the moment the main issue is the rental income yields they want which depends on income and tax bands. I had one recently that downvalued on the property value but it still fitted the maximum loan to value which is normally 75% although a few go to 80% but the rental income was downvalued even though the clients were getting x amount and had a signed tenancy agreement for that and bank statements to prove that going in the valuer decided the rental income achieveable was 20% less and this decision cannot be appealed.

Surveyors decisions are normally FINAL and they very rarely, if ever change that. Please PM me the details and I would be more than happy to help. Also most lenders on buy to let re mortgages give free surveys but some charge upfront application fees that are usually non refundable so be careful which lender you chose. I am finding that surveyors are downvaluing by 10% on average for property values and rents due to the Brexit uncertainty but that is just a guide however both property values and rent have been falling in London and the South for the last 6-12 months.

Estate agents letter re property values and rents are imo a waste of time and will not be looked at by a surveyor. He/She is signing it off and it is his/her career and judgement

Jonesy said:

I am looking to remortgage my property in part to finance a buy to let purchase.

I have an agreement in principle and the details and our documentation is currently going through the underwriters.

Due to uncertainty in the market at the moment there are various properties around us that are not selling or being reduced. I am therefore nervous about the valuations that form part of the underwriting assessment.

I have 3 independent valuations from local estate agents that are all around the level we need to be at but am aware that estate agents price high initially to entice you onto the market.

I know there are some mortgage experts on here so hoping for a bit of advice. Should I forward these valuations on to the mortgage company prior to the official valuation? Does anyone have experience of remortgage valuations and how they are calculated?

Thanks

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Difficult to judge. I used to work as a broker and some valuations can come up lower than expected. From what I've observed based on sold prices in the area.

The valuer will be from Connells or similar, won't be much point in forwarding on the valuations etc.
I do believe some lenders do a free valuation so you might be able to save some fees on the application- if you're concerned about paying for the process then getting a lower price then expected.

Very helpful so far thanks. So likely to be a desk valuation/ drive past unless we request otherwise?

Jonesy said:

Very helpful so far thanks. So likely to be a desk valuation/ drive past unless we request otherwise?

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As I said as long as the ltv is under 75% the survey is not the issue, the rate might go up if the ltv is higher than expected though, it is the rental income you are getting or more to the point what the surveyor says and how much mortgage you are asking for. As I said a quick pm to me with the details and I can clear it up within a minute

Jonesy said:

Very helpful so far thanks. So likely to be a desk valuation/ drive past unless we request otherwise?

Click to expand...

The lower the loan to value the more likely a desktop/drive by but it also depends on the mortgage amount and rental income declared