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Found 22 results

  1. Hello, I have question for anyone who wants to contribute please.... How do you value a property in a 'hot' or quickly inflating market? For the last year or so, I have found it really challenging to confidently assess the value of residential property in the UK. The normal method I would use, which is mainly Rightmove/Zoopla sold prices for the street and immediately surrounding streets has started to bear very little resemblance to what properties are selling for in the current market. I started to pay more attention to the 'Under Offer' section on Rightmove to get a sense of buyer demand on pricing, but for most properties this is currently significantly higher than sold prices...showing that demand is causing fast inflation in most areas. I would previously usually ignore 'For Sale' prices as these are estate agent valuations, which are generally optimistic and often end up being negotiated down or reduced by the seller. However, it does seem in the current market that there are less properties being reduced in price than in previous years. As the majority of properties are bought with residential mortgages, RICS surveyors are obviously approving the valuations on these properties, even though they are often 10-30% higher than the previous sold prices in that local area. I would really like to get a better understanding of how this calculation is made. Are there certain tools, methods, formulas etc (other than the ones I mention in this post) that can be used to confidently tell that a property is correctly valued when it is priced significantly higher than previous sold prices in that area? I always used to ignore the Zoopla home values estimates https://www.zoopla.co.uk/home-values/ - these are so wide ranging that I felt I couldn't use them to accurately predict what most properties would sell for. However, recently I realised that they presumably include 'under offer' prices and some element of % market inflation into their value calculations...and now I am actually finding that the 'High' estimate in this tool is a closer indication to what most properties are selling for than using Rightmove sold prices. Do you include an element of market forecasting in the valuation, as a way of future proofing the risk? For example, if the Savills residential property forecast for that region shows a predicted 4% increase in the next year...would that be used as a buffer to offset the lack of proof available from sold prices due to the inflated value being paid for the property? It seems that as long as the mortgage deposit (e.g. a minimum of 10% for residential and 25% buy-to-let) is more than the uncertainty or margin of error around the valuation, that lenders are probably not too bothered about inflated values, because they know they could repossess the property and sell it for enough to cover their costs and profit? Obviously this scenario is very bad for the property owner who overpays and then has to sell but unfortunately one of the consequences of a housing crash. Finally, auction guide prices. These would usually be set at least 15-25% below what the same property would achieve on the open market, based on sold prices. However, I have recently looked at some new listings for upcoming auctions and many of the guide prices are higher than Rightmove sold prices for the area. This suggests to me that even the 'discount' end of the market is undergoing such strong inflation that valuing a property is more of a leap of faith than a considered calculation at the moment. How do you know that the prices properties are selling for are not overly inflated and would cause negative equity if the market crashes in the next few years? Obviously choosing high yielding BTL properties with the intention of holding them long term would mitigate this risk to a certain extent...but it would mean you wouldn't be able to remortgage to withdraw funds for further investment for potentially quite a long time. Any feedback and advice would be appreciated please. I am interested from both a BTL and flipping perspective, but also as a home owner. Many thanks, James
  2. Hey, just looking for some advice/guidance....I have the opportunity to purchase a property at c. £110K cash (which I can do), its on the market for £150K, desktop valuation shows £149K, so definitely BMV. It is a 2yr old build surrounded by older properties, so at the top of the list in terms of value when compared to other local properties. There is no work/refurb needed, just a motivated seller - But, I dont want to leave all my cash tied up in the deal and therefore would look to mortgage the property at around the 6 month mark. My concerns:- How will I get the valuation at c. £150k if I brought the property for 6 months earlier at £110k. I cant evidence any work that I have done or value that i have added. The property is in a postcode that has had 7 sales in 12 years, so there no real comparable (the only evidence will be the £110k I paid 6 months earlier) At a valuation of £150K it is at the top of the list in terms of values of the property in that area Would appreciate any advice/thoughts on what to do with something like this.....??
  3. Hi all, A new member on here and my first time posting. I am one of the many people out there that is currently stagnant in the process of purchasing a property. I find myself in a new situation looking to purchase a second property, I recently received the Homebuyer Report back and the valuation of the property is significantly lower (12%) than what the market research that I have come across and utilised in this process indicates and what the mortgage lender surveyor has passed it at. I am yet to have a conversation with the surveyor to follow-up which I hope will shed more light but it has got me wondering - - Would or should the valuation in the report be taking into account the current market performance? - The report indicates a strong performance on nearly all factors, so repairs etc, I cannot identify where that is parallel to the drop in price? - What contributing factors does a surveyor consider when doing their appraisal, how justifiable is it? - Mortgage lender surveyor has already given it the green light at the agreed purchase price, leaves me confused as to why? - If the price does stand true, that is a big drop in asking price, how would you approach a renegotiation in this circumstance? Any tips or advice, I greatly appreciate in advance as I find myself in new territory here, Thank you all! Bojan.
  4. Hi everybody, iv recently finished Renovating a property in hull that i bought 6 months ago, it was bought for 50k cash. the property was in a bad state. the improvements i made where to add gas to the property as it didnt have a gas connection and add a boiler and central heating system new kitchen new bathroom new flooring fix the damp problem new roof add double glazed windows to all windows painted and decorated there was a property on the same road a few doors down that went for 70k in august 2017 which had no gas as none of the properties on the road do and by peeping through the window was in a bit of a sorry state inside .but i have just received my remortgage offer at 75k. i was expecting a valuation of 85-90k. i was not asked what work was done to the property as my broker said all you need to say is that work had been done. is that a mistake on behalf of my broker as iv spoken to another investor that said you have to show all receipts of work carried out on the property to prompt the surveyor. is the any way to change this valuation. i would appreciate any advise thanks Dennis
  5. Hi Everyone After some advice and wonder if other investors have come up against the same issue and how they manged to get round to it. I am currently buying my 3rd investment property and the Valuation was completed last week. My broker called me today with the unfortunate news that the lender is not willing lend on the property and it is in a poor state of repair and has not been properly maintained and are deeming it 'un-lettable', therefore unwilling to give us a BTL mortgage. The property is very cluttered and does need a cosmetic update, however there is currently an owner occupier living there and both myself and the agent are surprised with the valuation result. Given that I am purchasing the property with my brother who is also a builder and having both viewed the property in person, we have been taken by surprise as the kitchen and bathroom are fully functioning. We are considering a bridge, however I have heard there is a minimum bridge loan of £20k and we wouldn't need that much so don't want to pay for something we don't need to borrow. Any advice welcome.... thanks in advance! Claire
  6. Hello there, Re: How to calculate evaluation for a property that has been converted to flats when there are no other similar properties on the neighbouring streets I want to make an conditional offer (subject to building inspection survey) on a property that has been converted into a block of 5 studio apartments but I am hesitant as I don't know how the property would be valued by the bank. The property is based in Liverpool, postcode L7 and I will be using a mortgage. The gross income is £25,000 per annum and is fully tenanted. I have done the numbers and if my offer is accepted then the ROI would be 22%. (This is assuming that no extra capital expenditure is required). When I do my analysis, the expected cashflow and ROI meets my criteria. But I don't know how to value the property as there are no comparables nearby of a similar property. The other properties on that street are 3 and 4 bed houses. Therefore, I don't know what the bank would value this property and I don't know if/when I can get my money back out. This is an issue as I need to raise the cash to invest in this property through private loans. I need to raise £64,500 to pay for the deposit, stamp duty etc.. Not knowing how the property would be valued by the banks, means that I am uncertain on when I can pay back my investors. How does the bank value properties that have been split into blocks of flats? Many thanks for you help. Regards, Margaret
  7. Hello, I am planning to buy to let in Birmingham, hence I am looking for a good/trustworthy surveyor that will be able to (1) perform a solid structural survey, (2) give a fair valuation based also on local knowledge and (3) deliver the report in a timely fashion. A internet research returns only 2 potential candidates: - Marwood surveyors - Allcott Birmingham branch Has anyone had experience with any of them? Alternatively can you recommend a surveyor you were particularly happy with (here or private message) thanks in advance for any piece of advice!
  8. Hi, just a quick question. I am buying off plan at the moment. Completion due 1 year later. But exchange to be done in 28 days. My mortgage broker has adviced me not to exchange without a mortgage in place. Infact, they told me i cannot exchange without a mortgage in place. Is this true? I personally don’t think its true, as there are many people buying off plan. Second question is.... valuation of an off plan property? Nearer to the time of completion, i will instruct my broker to find me a mortgage. Which means, a surveyor will need to go to the property for a valuation. How can they do a valuation unless the property is completely finished? I have 2 months left for completion on another property, but the developer has said that the surveyor cannot do a valuation right now due to health and safety! My broker is now saying that i have to wait till completion, which again.... goes past the exchange date? Could someone give me some advice please. As i am buying 2 off plan properties for the first time and at the same time! One is due for completion a year later, one is due for completion 2 months later. Thankyou Kamil
  9. Hello all Can anyone recommend a surveyor/valuer in Sheffield, please? It's for a valuation for a remortgage. I was referred to Connells but apparently they don't cover Sheffield! And I'm looking for something a bit more authoritative than Zoopla... Many thanks
  10. I am considering selling my commercial property to a residential owner. My question is how to value. Obviously the annual rental value is part of the equation but how many years multiple on the rental would one use to reach a valuation? Thanks in advance
  11. Hi I have been made aware of an off market HMO opportunity in Coventry. The vendor is looking for a valuation of c.10 times the annual gross rental income. Is this reasonable?
  12. Hey everyone, I've recently moved up to Scotland and working on my first flip. Got what I think was a great deal on a property, added value and done what has worked for me down in England before where i'm positive I can sell for profit. The problem is, in Scotland (for those that don't know) it's the sellers responsibility to instruct a surveyor and get a home report (with valuation) before you market the property. This value significantly effects the eventual price the property sells for as lenders will only lend up to this value. So in short, has anyone got any advice on getting this value the maximum it can be? Getting both agents and surveyors on board with an increased price. What would you say when asked how much you paid for a property? Thanks,
  13. I am looking at an HMO in Hull. The numbers look good - 11% net yield . The asking price is 180,000 but when I look at Rightmove / Streetchecker the highest ever sale on the street is 100,000. The agent says that the seller can provide a RICS approved valuation on request. I am not familiar with this method of valuation . Does anyone have advice . Charlie
  14. Hi All, I'm interested to understand the strategy used by the majority (and minority for that matter) regarding valuations and the frequency of them. I've got a property letting at the moment, valued at £80,000, however the valuation was completed by a guy my mortgage advisor described as "ludicrously and famously stingy" and since then we've made some improvements, such as upgrading the 22 year old heating with a modern combi and upgrading the interior, largely with cosmetic changes. Obviously a re-valuation is going to be something I'll undertake in a couple of years to identify if I can withdraw a few thousand in equity to help speed along the next purchase, but I am just wondering what the standard is in this area? Do people have a strategy in place for continually reviewing their valuations and adjusting their investment level accordingly (for equity release or adjustment on the LTV for the mortgage)? Keen to hear some discussion... Jamie
  15. Hi Offer accepted on Ground floor flat (out of 2 flats), with a cellar used for storage. We have been going down the process for our first property and had the home buyers report back. There were 12 category 3's in need if urgent repair. 1 was about the boiler not having an up-to-date certificate which is not that bad. The main issues were: DAMP WET ROT BOUNDARY WALL IN GARDEN FALLING APART INADEQUATE SOUND INSULATION BETWEEN DOWNSTAIRS FLAT AND UPSTAIRS. ELECTRICS MAY NOT COMPLY WITH CURRENT STANDARDS AND NEED UPDATING. Damp: External walls, chimney breast, communal entrance and "many of the internal walls". Main walls the defective render needs to be hacked off and replaced. Some skirting boards in the kitchen have been affected by damp (only category 2). Wet Rot: Visible on the ground floor timbers from the cellar. This looks bad. The valuation came at the same price as what we had offered/accepted. The agents are organising someone to give us a quote for the damp. Any thoughts and advice here? Needed asap. Thanks in advance. Rob
  16. Hi, I would like some advice regarding my consent to let property. Back in 2007 I bought my first property (bought for £106,000), it was a new build (off plan) one bedroom flat. In 2010 myself an my wife decided to buy a house together and due to not being able to sell the flat at a decent rate (valued at £85,000 - £97,000), decided to rent the flat out. The flat was changed from a 'residental mortage' to a 'consent to let mortgage' as The Norwich and Peterbough Building Society do not do 'buy to lets'. Since the crash of 2007 - 2008 I have expected the price to drop but gradually gain traction and early this year noticed that the Zoopla estimate for the flat was £127,000. Which gave me the 75% LTV I needed to get free of my 'consent to let'. I approached a mortgage broker and paid a fee of £350 for their services and based on the valuation, I would be able to go ahead with a new mortgage lender - great! The flat was valued at £80,000 and a second valuation of £82,500 was done. This is way lower than the £127,000 on Zoopla's site and also lower than similar properties in the area (the building next door had a flat which sold for £90,000). The property is in Sheffield City Center and land around the building is going to be developed, although this won't be finished for a few years. So I am still stuck with my 'consent to let' mortgage which is £608 per month, but the tenant's rent only comes to £525, plus there is a service change and ground rent and insurance I pay out for. So I am losing each month. The mortgage broker said I should wait it out and see what happens in 12 month (I have paid their fee and they are happy to help again), but if these valuations are correct (or the best I can get) it will be a long and expensive wait. Is there any advice, anyone could give about how to move to another mortgage lender to a 'buy to let' mortgage? Any help would be appreciated.
  17. Hello, I have just got a Home Buyers Report and the valuation is exactly what I agreed to pay for the property. However I'm confident the property is BMV by approx 5-10k. How accurate are these valuations normally? Or do they play it safe and just go with what you paid like a banks valuation can often be? Thanks
  18. Hi all, I am in a bit of a pickle on my first property investment. The lender's valuation has come back £10k lower than my bid based on the prices of recently sold, similar properties in the area. Is there any first-instinct advice based on the above? Now for some more information: I can't make up the 10k shortfall and don't want to. The estate agent is going to contest the valuation today - he assures me that the valuation is accurate based on current prices. I see my options as 1) the valuation is contested and everything goes ahead as planned. 2) the valuation holds and I bid 10k lower and most likely get rejected. 3) the valuation holds and I ask the vendor to keep it off the market until (as the agent says) some properties complete at the relevent price and the valuation goes up. Based on this does anyone have any experience of a similar situation? Any advice would be much appreciated!
  19. I bought a detached property, below market value, last year at £130k. I have a 75% LTV mortgage on a 3.75% two-year fix ending Dec 2016. I believe the property is worth in the region of £165-175k. What is the best way to get a better (60% LTV) mortgage? Any advice, as a first time landlord, is much appreciated. Thanks.
  20. The government announced that it will charge capital gains tax (CGT) on gains made by non-residents disposing of UK residential property, from April 2015. The charge will come into effect in April 2015 and apply only to gains arising from that date. Does anyone know how the value of your property will be determine on April 2015? Should a valuation of your property be assessed around this date? Any recommendations on the best way to do so? Thanks. DT
  21. Hi All, I have recently had an offer accepted on a 2 bed terrace house with loft room (no building regs, so couldn't be sold as 3-bed) for 375k However, after we commissioned an independent homebuyers survey, they have said that in their eyes, the property is worth 350k. They have also said that there would be damp problems (although not a great deal) that would need immediate attention. The bank has not been instructed yet, and I would like to now negotiate with the vendor for a reduction. But am a little worried about how to approach this, as we REALLY like the property, and want to live there for quite some time. If the bank agrees with the surveyor, then this property might be unreachable for us, as we'd need more cash... How would people go about this? Get quotes in and negotiate based on that? Or give out the survey and ask for a reduction based on the surveyors value? Many thanks, Charlie
  22. Hi All Around 6 months ago I bought a buy to let property substantially below market value. (thank you RMP Property!) Purchase Price £73k Estimated Valuation now (6 month later) £115k I bought this property for cash with the view to remortgaging for the real value 6 months later. That day has now come and I am in the process of remortgaging to fund my next deal. Unfortunately the mortgage broker has come back to me after speaking to the lenders saying "Despite having owned and operated this property for 6 months the lenders will only consider the purchase price unless I have completed some sort of substantial improvement to the property"... which I haven't. I am not an expert in remortgages but I was under the impression that I only had to wait 6 months before a mortgage company would consider revaluing the property? Does anyone else have any experience in this? Would greatly appreciate any input you could give me. Thanks Matt
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