I received a letter this morning from the housing agency we rent the house from. It says the landlord is re-mortgaging the property and someone is coming round to value the house.
Knowing nothing about these things, can anyone shed any light if this is the case? Or is it the start of the landlord looking to sell the house? Really worried about it.
Or is it the start of the landlord looking to sell the house?
Wouldn’t have thought so if he’s remortgaging
Might well involve a valuation especially if landlord is looking to borrow more against the house or get a better deal that needs a lower loan to value ratio.
(I know nothing about specifics of buy to let mortgages- above is just based on having remortgaged in the past)
Ask your landlord?
Can't ask the landlord, my only contact is the housing agency. They are closed til Monday.
I'm hoping it is just a re-mortgage and not a valuation for selling. That's why I am asking if a valuation is normal for re-mortgaging. Like I said, I know nothing about any of this.
I think it depends on the lender. I'm in the middle of a remortgage to get a better rate (and I'm not changing the value of the existing mortgage to release equity or anything like that), but the new lender wanted a valuation. It was relatively painless.
I guess he will be looking to improve his "loan to value" LTV, so he can't get a better rate.
It can make a big difference to the mortgage rate on a buy to let mortgage. If he can the mortgage down to less than 70% of the value of property, he can save himself a lot of money. 75% LTV and below makes a big difference.
We had to have a valuation when we remortgaged; we weren't looking to borrow more, just change mortgage.
It's perfectly normal, usually required when changing lenders but as above, could be done when upping loan or trying to reduce LTV ratio for a better interest rate.
Pretty standard. Doesn't always happen but it isn't uncommon. We were offered 3 evaluation options: a non visit where they just estimate, a drive by and just look at the outside and a full visit and valuation. The first was enough for us too move LTV bands. Sounds like your landlord is going for the third option. I'd still say you are right to be suspicious though.
Yep we had to get a valuation each time we remortgaged. That said last time, about 10 years ago all they did was a 'drive by' valuation. Cost me about €150 and i have no idea if they did it or not.
Perfectly normal. Nothing to worry about.
New mortgage company wants to know how much the house is work so they can loan appropriately.
If he/she was getting estate agents round to value ot then they would be looking to sell.
Mrchrist it was the local estate agents our bank used for our valuation.
As above, perfectly normal. Especially if changing lender or trying to get into the next ltv band.
I wouldn’t worry about it.
Thanks all. Hopefully it is just me over worrying and is all as it says. Makes me feel a bit better knowing it is the norm.
@Andy4d - usually banks want a rics valuation done by a surveyor. From my experience at least.
As you say, it was done 10 years ago and things have tightened up since then.