Mortgage Valuation: Is it really a bad thing if your house is down valued?

Unless you are happy to pay more than a house is worth, it may not be not such a bad thing if your mortgage valuation is less than you had been prepared to pay.

Is your mortgage valuation less than the agreed purchase price?

A number of buyers purchasing a property with a mortgage see the mortgage valuation as a potential hiccup in their purchase.  If a buyer is relying on a mortgage with a large loan to value they may not be able to proceed as planned if the lender’s Valuer provides a valuation lower than the agreed purchase price.   Similarly, some buyers are concerned that the mortgage valuation may lead to a buyer pulling out (or making a lower offer) if they don’t get the mortgage offer they had expected.

If you had your heart set on a particular property and find you are unable to proceed (unless you use some of your own funds) then at minimum this is likely to be a disappointment.  If you have to start and look for another suitable property this may cause a delay, which could possibly lead to problems with the chain and you may even lose your own buyer.

But is it really a bad thing if your mortgage valuation is less than the purchase  price?

If you spend the time finding out why the property has been valued lower than the price you have agreed to pay, you may find there is a good reason.  A Valuer will use details of similar properties which have recently sold or are under offer, in conjunction with their knowledge of the local area, to arrive at the valuation figure.  It is possible that you have made an offer which is too high.  Other factors which may affect value include:

  1. Condition of the property (remember that a valuation is not a survey).
  2. Tenure.
  3. Works carried out without Local Authority approvals.
  4. Planning proposals which may affect the property.
  5. Detrimental use of land/property in the vicinity.

Once you establish the reason for the lender’s valuation being less than your agreed purchase price, you may wish to revise your offer, or even reconsider the purchase.  So, unless you are happy to pay more than a house is worth, perhaps it is not such a bad thing if your mortgage valuation is less than you had been prepared to pay.

buying and selling a house

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DIY in the home

Remember to stick to the jobs which are within your capability and expertise and employ specialists where necessary to ensure works are carried out safely and to the required standard. 

Whether you’ve recently moved house, are preparing to put your house on the market or simply wish to catch up on maintenance or make some improvements, a Bank Holiday weekend gives an extra day to tackle some DIY in the home.  

But take care.  Many accidents in the home or garden could be avoided by taking necessary precautions.

  1. Ensure there is adequate ventilation when using paint, solvents, etc.
  2. Be careful when using ladders or step ladders. Make sure they are in a good condition, used not on a sound surface and have someone to foot when in use.
  3. Wear appropriate safety clothing when using tools such as goggles, mask, dust mask, gloves, footwear, etc, when carrying out DIY in the home.
  4. Take care when using tools.  Read the operating instructions and take note of safety. Only use tools for their intended purpose and which you know how to use safely.
  5. Keep children and pets at a safe distance.
  6. Do not attempt to carry out any works which require specialist knowledge and training such as electrical works, works to gas appliances, installation of wood burning stoves, etc.  Instruct relevant specialists for such work.
  7. Do not carry out any structural alterations without obtaining advice.  Structural alterations are controlled by Building Regulations and in many cases require design by an Engineer.
  8. Do not disturb any materials which may contain asbestos when carrying out DIY in the home.  Asbestos can be found in many materials used in houses built up to 2000, including cement soffit sheets, textured coatings to walls and ceilings, asbestos cement pipes and gutters, some types of insulation, and more.  If there is a possibility that a product contains asbestos then have it tested and obtain advice on it’s removal and disposal from a specialist.  Visit http://www.hse.gov.uk/asbestos/

Remember to stick to the jobs which are within your capability and expertise and employ specialists where necessary to ensure works are carried out safely and to the required standard.

 

 

buying and selling a house

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