Property Valuations - How To Overcome Valuation Issues When Borrowing
Property Valuations - How To Overcome Valuation Issues When Borrowing
The big challenge when raising property finance is getting the valuation to match your expectation.
This video explains what a valuer does when looking for comparable evidence of your property worth. It covers the pitfalls and provides pragmatic solutions that help avoid falling foul of a valuation being lower than you want.
For anyone raising property finance against a unit they own or who is looking to purchase a new property then these simple tips will help.
#valuation #propertysurvey #realestatefinance #valuationreport #propertyfinance
Timing
00:20 - Why valuers can use dated information that backfires
00:50 - The Land Registry issue and why delays at Land Registry can be the root cause of a lower valuation
01:40 - What you should DO to avoid common problems with a property valuation
02:10 - What you should be looking for when comparing your property to other similar sold properties
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Recently Completed Work
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Script
Dave Farmer Lime Consultancy and I want to talk to you about one of the big bug bears we get with property finance, and that is problems with a valuation. Valuers. I have lot of respect for valuers, they do a really good job but sometimes the information they use can be slightly dated. When they're looking at valuing a property, they have to look at what the actual sold values of similar properties in the area are. And we all know if we look back since 2019 through to modern day, modern day, property values have changed massively. And not only they changed massively, they changed geographically as well. And we are seeing different rates of growth in different parts of the country.
If we then add into that, the land registry are somewhere behind in registering sold properties. Then what we've got is we've got a lag between what a property is worth now and the comparable properties that are available for valuers to look at. So in many cases, valuers are comparing your value of your property now compared to a value of a property, that may 9 or 12 months old. The impact of that is what a valuation comes out lower than actually it probably truly is. And what that means for a borrower is less finance, a lower loan to value, and probably a need to put your hand in your pocket and put more cash into the deal or that the deal simply doesn't work. So what do you do for the best? If you can do it, do your own legwork on comparable properties. And I don't mean look at right move and find properties that are for sale properties for sale. It don't cut the mustard. This is about properties that have been sold, go to local agents, get examples of real properties that have completed recently that are similar in both square foot number of bedrooms and in a similar locality to your property. You're looking at do your own work on the legwork of comparables and provide that information to the valuer work by making their life easier.
You are actually going one step ahead and addressing one of the issues that we commonly see with valuations, do your own leg work, get your own comparable evidence and you'll find that the time invested on day one is well and truly worth it. Hope it helps. For a hand raising you finance, you know where we are, get in touch and I'll talk to again soon.
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