Do You Need to Get Your Property Valued Before Remortgaging?
Whilst it is not a necessity to have a remortgage valuation of your property, it can be useful knowledge to have before beginning the application process. It will provide you more of an insight into your property’s value and therefore an idea of how much you will be offered for a new loan. Once beginning the application process for a remortgage however, your new lender will themselves employ an independent third party to value your property. A valuation before you remortgage is essential for the lender to gauge an accurate picture of your property’s value. This is needed in order to calculate your LTV (loan to value) ratio. It will determine the size of your mortgage compared to your property’s value, and therefore how much you still owe. You may get this valuation for free as part of your remortgage offer. However this will not alway be the case and you may have to pay for the valuation yourself.Why is Conducting Your Own Remortgage Valuation Important?
Whilst your lender is going to conduct their own remortgage valuation on your property during this process, it can be beneficial to attempt your own. As you will need to provide an estimated market value of your property when applying to remortgage. It may also help you understand how much equity you can release from your property if that is your goal. In the instance of a ‘down valuation’, when the surveyor deems your property lower in value than you think it is. Your loan to value ratio may increase along with your interest rate. If this occurs you may be able to make an appeal to your lender. However this can be a very difficult process and in this case it would be important for you to conduct your own research for your remortgage valuation. If the lender is willing to accept your appeal you must be able to provide evidence to show why you think the valuation of your property should be higher. You will need to present details for the recent selling prices of several, similarly-sized properties in your area. Along with gathering as many as examples as possible, all properties must have been sold. Those that are still on the market cannot be used as evidence. Having your own accurate remortgage valuation prior to beginning the application process will likely prevent you from any shocks. Such as a down valuation occurring when it comes to assessment. Having the opinion of a professional valuation behind you may also carry some weight with the lender should a down valuation occur.How Do I Find Out How Much My Property is Worth?
There are a couple of options when it comes to determining how much your property is worth:- The first of which would be utilising online resources. Many sites and services can be found by simply searching ‘how do I find the value of my property?’. These online resources utilise data from public records of land registries and surveys. Offering a depiction of what your current property value could look like. Even if you decide to get an official valuation yourself, doing your research beforehand can be incredibly helpful.
- Another good indicator of how much your property will be valued at can be found by investigating what similar properties in your area have sold for. Discounting those yet to sell. As properties still on the market will likely have inflated prices attached to them.
- However if you are looking for the most accurate depiction of what your property will be valued at, your best bet is to get an official valuation. Whilst this method will give you the best understanding of your LTV ratio, it can be costly. You may also have to pay for another valuation for your lender later down the line.
