Do they do this to keep the loan to value ratio high or something?Sarah W said:Bear in mind that a valuer acting on behalf of a lender may be more conservative than an open market valuation.
ClubMan said:Do they do this to keep the loan to value ratio high or something?
Hel_n said:Possibly, although I think it may have something more to do if the borrower ever defaulted on repayments and the house was reposessed. If the lender then had to sell the house and the sale price was not enough to clear the outstanding mortgage, afaik the lender can claim against the valuer's indemnity insurance for over-valuing the property originally.
propertyprof said:A valuation is the price at a certain time between a willing seller and buyer with a reasonable timescale given for marketing.
Hel_n said:I know what a valuation is based on. I was talking about in the case of remortgaging where the valuation is based on what price the valuer feels the house would achieve on the open market. Not a valuation when a house is being purchased, where the valuer just values the house at the purchase price.