Valuation when not intending to sell

loveisdivine

Is it possible to pay for a valuation when you're not really intending to sell?

We bought our house 2 years ago, it was in a bit of a state. The garden in particular was a borderline impassable no mans land (about 1/2 acre total)! So we've done a lot of renovations so to speak, new boiler and heating system, new electrics etc and revamped all the rooms and gotten the garden under control.


I'm curious as to what the house would be worth now compared to what we paid. We got quiet a good deal, mostly because of the state it was in.


Whats the best way to get a realistic value on it now?

Sleeper12

loveisdivine wrote:

Whats the best way to get a realistic value on it now?

Ring an estate agent. It's a waste of money unless you are planning on selling imo. A new valuation will reflect the increase from two years ago to today's value but the work you describe is unlikely to have had much of a difference to the value.

theteal

I know of people getting a better rate from the bank due to the increased value of the property.

riclad

Phone the local estate agent , ask for a valuation ,most will give you a free valuation.
Or look on propertyprice register ireland ,see what houses on your street , area sold for.
eg 3bed house with garden of the same age and type semi d,etc
Look on daft.ie your area , eg santry ,what are the prices listed for a similar house of similar age and size.

https://www.propertypriceregister.ie/website/npsra/pprweb.nsf/page/ppr-home-en
it,ll list houses sold 3 months ago approx in your area, town .

Sleeper12

theteal wrote:

I know of people getting a better rate from the bank due to the increased value of the property.

Yes I got that myself at one stage. The house would need to have doubled or trebled in value in the last two years for the bank to reduce the interest rate.

heebusjeebus

Sleeper12 wrote: »

Yes I got that myself at one stage. The house would need to have doubled or trebled in value in the last two years for the bank to reduce the interest rate.

The LTV bands are generally 80% and 50%.

loveisdivine

The loan to value thing is interesting. The house was valued at €175k and we had a 90% mortgage. It's hard to find prices for similar properties as it's a rural area and the properties are all fairly different. Of the few that have been sold in our area in the last couple of years, most of them have been for 200k or more. But again, the properties are all different.


It might be worth finding out if the 2 years of payments combined with (hopefully) an increase in the value of the house, might bring us down to 80%.

theteal

Sleeper12 wrote: »

Yes I got that myself at one stage. The house would need to have doubled or trebled in value in the last two years for the bank to reduce the interest rate.

If they bought with a 10% deposit and they now had better than 80% LTV - not completely unheard of the current madness of the Irish market I'd imagine, I'd be expecting a rate change from the bank.

Sleeper12

heebusjeebus wrote:

The LTV bands are generally 80% and 50%.

The work described by op will have very little effect on the valuation. An extention adds value. Converting the attic adds value because you have added an extra room. Rewire & heating etc will have little effect. I'd expect to see the average increase for the last two years and little more

Another poster suggested getting a free valuation. This is only suitable for selling. It's a guide price to set an asking price. The house might sell for more or less than this price.

To get a real valuation in writing that the bank will except op will have to pay for the valuation.

raxy

We had to get our house re-valued to move to a fixed rate. Had the house just over a year. It was valued 30k more than we paid & got us under 80% LTV.
The values commented on the work we'd done to the house as a reason for the higher value but I don't know how true that it.

Thoie

loveisdivine wrote: »

Is it possible to pay for a valuation when you're not really intending to sell?

We bought our house 2 years ago, it was in a bit of a state. The garden in particular was a borderline impassable no mans land (about 1/2 acre total)! So we've done a lot of renovations so to speak, new boiler and heating system, new electrics etc and revamped all the rooms and gotten the garden under control.


I'm curious as to what the house would be worth now compared to what we paid. We got quiet a good deal, mostly because of the state it was in.


Whats the best way to get a realistic value on it now?

I had to get a valuation on a new build for the bank, so there are estate agents out there that do valuations without putting the house on the market. It cost €150. My bank would only take valuations from "approved" valuers, so if you're doing it to hopefully bring your LTV down, you might as well get one of the bank's approved people to do it.

loveisdivine

If I wanted to go down that route, would I be best to contact the mortgage provider or the broker we dealt with originally?

Sleeper12

Thoie wrote:

I had to get a valuation on a new build for the bank, so there are estate agents out there that do valuations without putting the house on the market. It cost €150. My bank would only take valuations from "approved" valuers, so if you're doing it to hopefully bring your LTV down, you might as well get one of the bank's approved people to do it.

All estate agents will value the property without it going on sale. People need this service for inheritance tax, for the bank and many other reasons. You pay for this service

Usually when you are selling they will value your property for free. This valuation is only suitable for selling.

Sleeper12

loveisdivine wrote:

If I wanted to go down that route, would I be best to contact the mortgage provider or the broker we dealt with originally?

Contract your bank/ lending institution

PhoenixParker

loveisdivine wrote: »

If I wanted to go down that route, would I be best to contact the mortgage provider or the broker we dealt with originally?

Mortgage provider. It should be on their website.

daheff

2 points to consider


If the price has risen dramatically you will be liable for higher property tax. You probably are anyways, but if you had a valuation and dont readjust your assessed amount if revenue audit & find that out, then you are in trouble.

Other thing is that you may be entitled to a better LTV mortgage rate with your bank.

swings & roundabouts.

Sleeper12

daheff wrote:

If the price has risen dramatically you will be liable for higher property tax. You probably are anyways, but if you had a valuation and dont readjust your assessed amount if revenue audit & find that out, then you are in trouble.

Property tax has been frozen at 2013 (I think) level. It doesn't matter if your house is worth more now as it's frozen

bbsrs

daheff wrote: »

2


If the price has risen dramatically you will be liable for higher property tax. You probably are anyways, but if you had a valuation and dont readjust your assessed amount if revenue audit & find that out, then you are in trouble.

.

Why tell someone they may be in trouble with revenue without any knowledge of the matter ?

LPT property values frozen at 01 May 2013 values for 7 years including 2013 and 2019.
Revenue have set next value date at November 2019.

ted1

theteal wrote: »

If they bought with a 10% deposit and they now had better than 80% LTV - not completely unheard of the current madness of the Irish market I'd imagine, I'd be expecting a rate change from the bank.

AIB don’t allow you charge LTV

daheff

bbsrs wrote: »

Why tell someone they may be in trouble with revenue without any knowledge of the matter ?

LPT property values frozen at 01 May 2013 values for 7 years including 2013 and 2019.
Revenue have set next value date at November 2019.

and if you get a valuation on your house at a higher rate now and revenue come looking in 2019 and find you haven't reset the value to this or higher (knowingly) they'll throw the book at you.

van_beano

daheff wrote: »

and if you get a valuation on your house at a higher rate now and revenue come looking in 2019 and find you haven't reset the value to this or higher (knowingly) they'll throw the book at you.

Negative, whatever value you set in good faith on the 1st May 2013 will remain valid until 1st November 2019 regardless of the improvements made to the property or property value rising

See http://www.citizensinformation.ie/en/money_and_tax/tax/housing_taxes_and_reliefs/local_property_tax.html

The tax is based on the chargeable value of a residential property on the valuation date. The chargeable value is defined as the market value that the property could reasonably be expected to fetch in sale on the open market on the valuation date. The valuation date is 1 May 2013. This valuation applies until 1 November 2019. This means that the valuation of your property for LPT purposes on 1 May 2013 will stay the same until 2019 (even if you make improvements to your property).

IrishZeus

ted1 wrote: »

AIB don’t allow you charge LTV

This is incorrect - we had a valuation completed 3 months ago and our LTV rate changed and monthly payments dropped as a result. Mortgage held with AIB.

tommythecat

IrishZeus wrote: »

This is incorrect - we had a valuation completed 3 months ago and our LTV rate changed and monthly payments dropped as a result. Mortgage held with AIB.

Exactly. Totally untrue that they don't allow you to change. They allow you to change once in the loans lifetime. We changed last year after a valuation.

L1011

Sleeper12 wrote: »

The work described by op will have very little effect on the valuation. An extention adds value. Converting the attic adds value because you have added an extra room. Rewire & heating etc will have little effect. I'd expect to see the average increase for the last two years and little more

Another poster suggested getting a free valuation. This is only suitable for selling. It's a guide price to set an asking price. The house might sell for more or less than this price.

To get a real valuation in writing that the bank will except op will have to pay for the valuation.

Making the house look less generally hideous, not smell if applicable, etc compared to a semi-derelict state will have a decent impact on valuation.

BOI moved me from the >80% band to the <50% band as a combo of payments (>10% deposit to begin with) and local valuation increase without requiring a valuer report at all.

daheff

van_beano wrote: »

Negative, whatever value you set in good faith on the 1st May 2013 will remain valid until 1st November 2019 regardless of the improvements made to the property or property value rising

I never said this was not the case??

Sleepy

L1011 wrote: »

Making the house look less generally hideous, not smell if applicable, etc compared to a semi-derelict state will have a decent impact on valuation.

BOI moved me from the >80% band to the <50% band as a combo of payments (>10% deposit to begin with) and local valuation increase without requiring a valuer report at all.

Ulster did similar for me - asked me what I thought it was worth now and their team did a "web valuation" (I'm guessing checked the PPR) and dropped us to the> 70% band within 2 years of having drawn down.

Bob24

IrishZeus wrote: »

This is incorrect - we had a valuation completed 3 months ago and our LTV rate changed and monthly payments dropped as a result. Mortgage held with AIB.

How did that work? Did you ring AIB and ask them to appoint an approved valuer?

IrishZeus

Bob24 wrote: »

How did that work? Did you ring AIB and ask them to appoint an approved valuer?

We got the name of an AIB approved valuer local to us and had them complete a valuation which cost €150. They submitted the new valuation to AIB, who moved us to the <80% rate band, and we now pay at the lower rate.

Bob24

IrishZeus wrote: »

We got the name of an AIB approved valuer local to us and had them complete a valuation which cost €150. They submitted the new valuation to AIB, who moved us to the <80% rate band, and we now pay at the lower rate.

Cheers. Maybe a silly question but since the valuer is approved by the bank did they seem conservative in their valuation? (And was there an opportunity to have a chat with them to discuss how much the value might have increased and why)

Reason I’m asking is that we did quite a bit of renovation in our place which I believe should partly reflect in the price, but if for exemple the valuer just checks the PPR to see how much we paid and simply applies a standard yearly increase for the area the fact that the property is no a lot more attractive would be missed out in the valuation.

IrishZeus

Bob24 wrote: »

Cheers. Maybe a silly question but since the valuer is approved by the bank did they seem conservative in their valuation? (And was there an opportunity to have a chat with them to discuss how much the value might have increased and why)

Reason I’m asking is that we did quite a bit of renovation in our place which I believe should partly reflect in the price, but if for exemple the valuer just checks the PPR to see how much we paid and simply applies a standard yearly increase for the area the fact that the property is no a lot more attractive would be missed out in the valuation.

Our valuer came and photographed the house and garden etc. Its a new build, 2 years old at the time so there was no material change to the house. Prices had been on the rise since we bought it and we needed the value to increase from €320k to €350k to change the rate band.

There was a discussion with him about this at the start when he arrived first and, well, that’s what the value came back at. We know the house did increase by quite a bit in those 2 years but weren’t sure if we’d hit the €350k - hence letting him know what we were hoping for in advance.

gaius c

theteal wrote: »

I know of people getting a better rate from the bank due to the increased value of the property.

This. If you're doing anything with the mortgage, you need to get a valuation done.

loveisdivine

I emailed our broker and he said Haven (our mortgage provider) haven't historically let people change LTV but the Haven rep had been saying for a while that it was going to change. Apparently he will be seeing the rep this morning and will ask the question.

We need the value of the house to have increased by a minimum of €18500.00 to get us under 80%.

Sleeper12

loveisdivine wrote: »

I emailed our broker and he said Haven (our mortgage provider) haven't historically let people change LTV but the Haven rep had been saying for a while that it was going to change. Apparently he will be seeing the rep this morning and will ask the question.

We need the value of the house to have increased by a minimum of €18500.00 to get us under 80%.

I could be wrong but I think I remember the government forcing lenders to change about 4 or 5 years ago. The government were getting a lot of stick, as owners of the banks,, because we were the highest interest rates in the EU. Banks said they couldn't afford to reduce rates as they needed variable rates to subsidize the loss making trackers. As far as I remember the compromise was reduced LTV. I don't know who Haven is & maybe the compromise was just for the banks the government owned. BOI, AIB & Permanent

Thoie

loveisdivine wrote: »

I emailed our broker and he said Haven (our mortgage provider) haven't historically let people change LTV but the Haven rep had been saying for a while that it was going to change. Apparently he will be seeing the rep this morning and will ask the question.

We need the value of the house to have increased by a minimum of €18500.00 to get us under 80%.

I can't understand why banks wouldn't let you change, as the alternative is that you could just switch mortgage (unless there's some specific reason why you're 100% tied to that provider). I haven't reached that stage yet, but if/when the value of my property increases to such an extent that I'd be in a different LTV bracket, I'd suggest to my lender that either they move me, or I move to a different lender.

L1011

If loans are securitised in certain ways it could be easier for them to be redeemed than altered. Guesswork rather than knowing if that is the case

ted1

tommythecat wrote: »

Exactly. Totally untrue that they don't allow you to change. They allow you to change once in the loans lifetime. We changed last year after a valuation.

They told me that I couldn’t change

loveisdivine

Update from the broker, Haven expect to be able to do LTV changes before Christmas. Waiting on some "system update". The broker will contact me when it's available and go from there.

Thoie

loveisdivine wrote: »

Update from the broker, Haven expect to be able to do LTV changes before Christmas. Waiting on some "system update". The broker will contact me when it's available and go from there.

Ask them if they'll backdate it, given that their IT system schedules are nothing to do with you. They probably won't, but I'd make the point anyway.