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Purchased a house (in the UK) with a 2 year fixed mortgage. When it comes to remortgaging, how is the property value calculated? Can I have any input into this, or is it done on "drive-by valuation"?

Within the time frame we have done both minor and major improvements, and I think house prices have slightly risen as well.

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  • If not changing lenders, your lender will tell you how much your property is worth. And your current lender should be aware about the minor and major improvements you have done, considering you have informed them, and would take that into consideration. If changing lenders, the surveyor is the one to do it. – DumbCoder Jul 17 '18 at 10:37
  • Do you need it to be above a certain amount, to qualify for a favourable LTV (loan-to-value) band? – marktristan Jul 17 '18 at 10:48
  • @marktristan that's a possibility I guess. – conradj Jul 17 '18 at 13:38
  • @DumbCoder I don't think I need to tell my lender about improvements as a matter of course? Will this be something asked at remortgage time? – conradj Jul 17 '18 at 13:39
  • It should be in your mortgage agreement. I believe it is present in all mortgage agreements. Changes are meant to be intimated to the lender, but you should check your mortgage agreement pronto. – DumbCoder Jul 17 '18 at 16:27
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When you apply for a remortgage, just like a mortgage, the lender will require you to have a valuation done.

A simple valuation (as opposed to a Homebuyer report, which is common when buying a property) is typically sufficient, as the bank only cares about the value of the property; the additional content of more detailed surveys are for your benefit, not the bank's.

Although simple valuations are sometimes referred to as being "drive by", that's not very accurate! A surveyor will visit the property and have a look around.

You're not likely to have any input on the valuation. However, the mortgage application happens before the survey is instructed, so you have to estimate the value of the property at that time. One could speculate that that estimate may influence the surveyor.

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    apply for a remortgage, just like a mortgage, the lender will require you to have a valuation done Not necessarily. If you are not changing lenders you don't need it done. Only if you are changing lenders do you need to get the valuation done. – DumbCoder Jul 17 '18 at 10:34
  • @DumbCoder - If you want "more money", you need a new valuation. – Fattie Jul 17 '18 at 11:58
  • Steve - I recently refinanced a HELOC. The 15 years had run out and I wanted to increase the line. The surveyor/appraiser did not set foot on my property. A neighbor texted me that someone in a car was "staking out" my house, taking pictures. And I texted the bank, who immediately responded that the guy was working on the appraisal. They didn't make any appointment with us, he literally drove by. Well, he did stop to take pictures. LTV under 50% for what that's worth. – JoeTaxpayer♦ Jul 17 '18 at 12:52
  • @JoeTaxpayer: I can't comment on how it's done in the US; but my experience in the UK is that for surveys (whether valuation or more detailed ones), the surveyor needs access to the property, and so has to make an appointment with you to ensure that someone will be there to let him/her in. – Steve Melnikoff Jul 17 '18 at 12:56
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    Sorry. UK. Right. Even after our disastrous financial meltdown, banks still seem to be a bit lax. – JoeTaxpayer♦ Jul 17 '18 at 13:08

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