House Revaluation for Recalculating LTV for Mortgage

RobTheLad

Hi folks, not sure if I'm posting this in the right place, but I didn't want to start a new topic.

I purchased a house at the beginning of 2019 (First time buyer). It was a second hand house which required extensive cosmetic refurbishment, and other maintenance work to roof, windows, doors etc which had been neglected for sometime. The work required was reflected in the price I paid for the property.

Since then I have renovated the entire house to a very high standard. Recently, I noticed a house a few doors down from me go up for sale and checked the online advert. The propery is in good condition overall, but not finished to as high a standard as my own, nor has had upgrades done to windows, doors,roof, gutters etc. The asking price on that property is higher than the purchase price I paid plus refurbishment cost, . Is it worth my while getting the property re-valued from a LTV perspective? I bought with a 80% LTV, but have read on here in the past that future mortgage interest rates I could avail of are dependent on LTV %. Will banks take a new valuation into account?

fliball123

RobTheLad wrote: »

Hi folks, not sure if I'm posting this in the right place, but I didn't want to start a new topic.

I purchased a house at the beginning of 2019 (First time buyer). It was a second hand house which required extensive cosmetic refurbishment, and other maintenance work to roof, windows, doors etc which had been neglected for sometime. The work required was reflected in the price I paid for the property.

Since then I have renovated the entire house to a very high standard. Recently, I noticed a house a few doors down from me go up for sale and checked the online advert. The propery is in good condition overall, but not finished to as high a standard as my own, nor has had upgrades done to windows, doors,roof, gutters etc. The asking price on that property is higher than the purchase price I paid plus refurbishment cost, . Is it worth my while getting the property re-valued from a LTV perspective? I bought with a 80% LTV, but have read on here in the past that future mortgage interest rates I could avail of are dependent on LTV %. Will banks take a new valuation into account?

I dont think that will apply as at some point in every mortgage your mortgage is going to below a certain threshold with paying back the capital amount, you could however look at the market and see if some are doing a mortgage for moving to them, you normally get a few % back and you will probably get the %drop due to LTV. Good luck

Smouse156

RobTheLad wrote: »

Hi folks, not sure if I'm posting this in the right place, but I didn't want to start a new topic.

I purchased a house at the beginning of 2019 (First time buyer). It was a second hand house which required extensive cosmetic refurbishment, and other maintenance work to roof, windows, doors etc which had been neglected for sometime. The work required was reflected in the price I paid for the property.

Since then I have renovated the entire house to a very high standard. Recently, I noticed a house a few doors down from me go up for sale and checked the online advert. The propery is in good condition overall, but not finished to as high a standard as my own, nor has had upgrades done to windows, doors,roof, gutters etc. The asking price on that property is higher than the purchase price I paid plus refurbishment cost, . Is it worth my while getting the property re-valued from a LTV perspective? I bought with a 80% LTV, but have read on here in the past that future mortgage interest rates I could avail of are dependent on LTV %. Will banks take a new valuation into account?

The key phrase here is “asking price” which based on what you said is likely way overpriced! If it sells for asking you might have a case but otherwise no

diggerdigger

RobTheLad wrote: »

I bought with a 80% LTV, but have read on here in the past that future mortgage interest rates I could avail of are dependent on LTV %. Will banks take a new valuation into account?

They will, but.

If you are getting it valued, then the valuer will look at the transactions, not just the asking, so maybe wait and see what the house up the road goes for, and how the market transactions have moved in the last 18 months. Also, one loopy seller and buyer does not set the value. I think valuers are being instructed to be conservative by banks in the current climate. Surprise, surprise.

I think most banks rate LTV thresholds seem to be >80%, 50-80%, and <50%. Getting an accurate valuation (whatever that is) that would get you from LTV80% to less than LTV50% might be a stretch, unless you have a very significant spend on the property, not just surface or fittings upgrades.

It is worth checking with the bank as some banks are covering valuation fees for fixed rates, if you are into that at the moment.

It might also serve to piss you off (depending on your outlook) if you find that the work and money you put in is not worth it. Maybe for mental health, just enjoy property for now.

Graham

Mod Note

Thread split

L1011

It depends on the lender and the bands. I asked to go to the under 50% band and it was approved on the phone with BOI

brisan

diggerdigger wrote: »

They will, but.

If you are getting it valued, then the valuer will look at the transactions, not just the asking, so maybe wait and see what the house up the road goes for, and how the market transactions have moved in the last 18 months. Also, one loopy seller and buyer does not set the value. I think valuers are being instructed to be conservative by banks in the current climate. Surprise, surprise.

I think most banks rate LTV thresholds seem to be >80%, 50-80%, and <50%. Getting an accurate valuation (whatever that is) that would get you from LTV80% to less than LTV50% might be a stretch, unless you have a very significant spend on the property, not just surface or fittings upgrades.

It is worth checking with the bank as some banks are covering valuation fees for fixed rates, if you are into that at the moment.

It might also serve to piss you off (depending on your outlook) if you find that the work and money you put in is not worth it. Maybe for mental health, just enjoy property for now.

As someone who has flipped houses with my brothers you have to be very careful what you put into a property to increase its value
Kerb appeal,bathrooms and kitchens sell a property.
A 5k Cash and carry kitchen will do just as well as a 15k Kube kitchen when selling a property.
Every area has a limit on its price for a certain type of house .
A 2 up 2 down in Dalkey will be worth a lot more than a 2 up 2 down in Tallaght.
Extensions are something you will never get your money back on
Windows .plumbing ,rewiring yes but lots of other stuff no .
i have seen perfectly good houses sold and next thing kitchens ,flooring ,bathrooms ripped out
It all depends who is buying it and why .
As a previous poster said if you like the house just enjoy it .
My nephew's recent experience where the bank valuer valued the house at less than sale agreed price makes me think that maybe the banks are getting nervous ,
There is no advantage to a bank giving you a lower rate of interest.
maybe look at switching banks and getting a new mortgage