Low re-valuation on refurb project

Hi Neil, how soul destroying. Building societies really use a valuer to ensure the property exists and to advise on the property's condition. They will make a valuation recommendation to the Building Society. I always check the valuer is familiar with the area and also prepare a brief for the valuer that contains address, purchase price, age, type of construction, age of boiler, description of work carried out, approx. cost of the renovation (costs plus labour) confirmation of building regs compliance, EPC results, number of bedrooms etc. I also check Zoopla and Rightmove valuations. So after any renovation work I go to Zoopla and update the estimated value and put an updated photo in. This also gives you the opportunity to look at the values attributed by Zoopla of other local properties. Of course you can spend many pennies on a renovation and not get a return if the area is in decline or if you have over specified the quality of the renovation for the area where the property is located. Why not do all the above and get another valuation done? Hope this helps.

Reply to the comment left by "Rob Crawford" at "29/03/2015 - 12:28":

Good advice Rob.

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We recently remortgage an unencumbered flat with TMW (our estimate £180k) and the valuation lowballed although adequate at £170k. The broker said that remortgages are generally downvalued by about 5%.

This is unfortunately an all too common problem with refurb projects. Even after 18 months the valuer will look back at historic prices and see the property sold for the price it did, and then just add a bit to it to reflect the market without questioning any work done. I had this problem recently with a property I originally bought as a repossession. The trouble is, you do the work but a lot of underlying problems fail to get addressed. It;'s ok putting a new bathroom, kitchen in etc. Even central heating and double glazing in some cases, but what about damp issues? Subsidence? These are just some examples which might not get picked up so when the property gets revalued they show up like a sore thumb and the valuation falls to the floor.
My advice is, if you buy a property like this, don't just take it at face value and do the work you can see needs doing. Read the report properly and ensure ALL issues are addressed. Only then should you apply for a revaluation.

I to have had many properties down valued by Mworks, I came to the impression that they were deliberately down valuing by up to 20%. I brought it up with my solicitor who also as clients with down valued properties so have remortgaged to another lender. Mworks offer 80% mortgages but with there valuations its more like a 70% ltv.

I suppose some valuers are cautious after the down turn as many were burnt.

It is important to note that TMW don't have their own valuers, they outsource.

My brother recently had a strange issue after building two bungalows on the same street. In both cases TMW happened to be the mortgage lenders.

The bungalows were not identical, one was bigger than the other and had a much bigger garden too. The spec was otherwise very similar. However, TMW instructed two separate valuation companies and the smaller bungalow valued at £25,000 higher than the bigger one - the mind boggles!

What this proves is that valuation appraisals are an art, not a science.
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I bought a semi at auction in 2013 and fully renovated the property over 6 month. I finished it last April and had it revalued for a remortgage this Jan. I went with BM mortgages and fully explained what i had done to the valuer who came out. Full rewire, full heating system, new patio, new bathroom, new kitchen, knocked the kitchen and dining room into one room, full D/G.

I paid £56k for it at auction and spent £10k on it. The house opposite which has a smaller garden had sold 4 months earlier for £125k and i pointed this out to him. I valued the house at £130k and he agreed.

Reply to the comment left by "john " at "30/03/2015 - 19:24":

£10k! Would you work for me?

Reply to the comment left by "Mark Alexander" at "30/03/2015 - 13:03":

Definitely not a science Mark. We have mortgage vaulation fro at least two firms that TMW use that, as examples, have variously a) omitted an allocated parking space b) noted or not noted a flood risk in the same block of flats c) grossly misquoted the SQM d) provided an estimated rental well below that being currently achieved. I get pretty fed up with paying for such a shoddy service. Fortuantely the valuations were still adequate but in truth the only purpose they serve is to cover the underwriters posterior

Reply to the comment left by "money manager" at "30/03/2015 - 20:47":

As the comment posted by John demonstrates, the easier you can make the valuers lives, the more likely that it is that they will arrive at sensible figures.

I agree that such effort should not be necessary as these valuers are qualified professionals, but sadly it is!
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