House Valuation Time

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sosilly
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by sosilly » Mon Aug 27, 2018 6:15 pm
Hi there

I am coming up to 48 months into an IVA this month with another 24 months to go. it says in my paperwork that at month 54 I will be required to obtain a house valuation to determine how much equity is in the property which will determine whether we need to re-mortgage or extend by a further 12 months.

Anyone who has been through this process advise what the process is, do I arrange my own estate agent viewing? Do I tell them we want a valuation that would attract a quick sale due to financial difficulty would they lower the value amount but would they state on the written valuation that the valuation given is based on getting a quick sale. If so that would be a no no as the IVA company wouldn't accept it as would lower the amount of equity.


Any advice greatly appreciated

Thanks

sosilly
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Foggy
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by Foggy » Mon Aug 27, 2018 6:52 pm
sosilly wrote:
Hi there

I am coming up to 48 months into an IVA this month with another 24 months to go. it says in my paperwork that at month 54 I will be required to obtain a house valuation to determine how much equity is in the property which will determine whether we need to re-mortgage or extend by a further 12 months.

Anyone who has been through this process advise what the process is, do I arrange my own estate agent viewing? Do I tell them we want a valuation that would attract a quick sale due to financial difficulty would they lower the value amount but would they state on the written valuation that the valuation given is based on getting a quick sale. If so that would be a no no as the IVA company wouldn't accept it as would lower the amount of equity.


Any advice greatly appreciated

Thanks

sosilly


First you need to check whether they want this dome now or in a years time, as your IVA has been extended.

IPs all vary about how they approach this ... but the valuation has to be an open market valuation (ie not a forced sale). You can do a little research yourself and see how close the equity might be to the trigger point for an extension. If you are going to have way over the £5k equity there is no real point in busting a blood vessel, as long as the extension is applied and not some remortgage (unlikely). If there is a chance you can come in under the £5k it would be worth putting some effort into a realistic valuation to counter any that the IP might come up with (some will do an online check themselves -- highly speculative!).

Bottom line -- for now -- ask your IP what he / she wants and when.
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sosilly
Posts: 111
by sosilly » Mon Aug 27, 2018 7:45 pm
Thanks Foggy

I have always been in a 6 year IVA as the creditors said I was paying to much for my car so said to pay an extra year which I agreed to but my paperwork still states at month 54 to produce house valuation but I will check with them.

I have seen on this forum from people that online valuations are always higher than an actual estate agenty valuation as there could be many reasons to de-value a property that an online valuation couldn't predict. On my estate houses valuations are lower than previously as
there is completition from 2 new housing companies building houses in the village. What would happen in that kind of case would the IP take the online valuation over the estate agent valuation?

When I entered the IVA they did an online valuation of £156,000 for my house on Mouseprice and when I do one now it comes up an average price of £170,000 but it would not be valued by a local estate agent at that price. Houses on our estate the same as ours are currently beingvalued at
approximately £145,000.

I am in an interlocking IVA with my husband and our paperwork states that we are allowed £5,000 each equity without the need for extension.

We currently owe £100,500 with a £17,340 secured loan = £117,840 owed. If our property was valued at £145,000 like the others on our estate have recently been valued at then the 85% LTV would be £123,250.


123,250 - 117,840 = £5,410 equity so no ext would apply.

As it stands we could go up to approx £150,000 without going over the £10,000 equity allowed but my march we will have paid a little more off the mortgage so will probably be a little less then that.

My concern would be if the IP would take the online valuation of £170,000 over an actual property valuer valuation.

Would that happen?

Thanks
sosilly
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Foggy
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by Foggy » Mon Aug 27, 2018 8:12 pm
They should bow to the estate agents valuation by inspection as being the more reliable -- but they would probably take an average. Be wary of joint IVA's giving you £5k each --- we have long argued on here that this is correct ... it definitely reads that way. However some IP's have interpreted this as, due to the two IVA's being treated as one, you only get the one disregard of £5k. A few posters have brought this arguement to us and we have given out opinion -- usually that the IP is incorrect --- but we have yet to have a poster come back to us with the result of the arguement.

Estate agents do tend to overvalue, if they think you are getting the valuation for a potential sale. They would be more "realistic" if they knew the truth (but might charge for the valuation) or if they were told that a quick sale was wanted (not a forced sale). Some IP's will actually pay for a RICS valuation.
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abbiesmum2003
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by abbiesmum2003 » Mon Aug 27, 2018 8:25 pm
Having recently had to do equity release and valuation I argued the valuation they got online as totally not realistic.
It takes an average of whats sold rather than an individual valuation of your property.
Our online was up on £170k for a 3 bed terrace. Theyre not selling for that and with going over 5 years with very little maintainanve/cosmetics noone in their right mind would pay 170k for this house so we got a couole of local agents to do an accurage valuation and would market it 135-145 at the absolute max! Huge difference to online.
My t&cs asked for local agent valuation not online guess which is what I stuck too.
Hope you can too as does make a difference
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sosilly
Posts: 111
by sosilly » Tue Aug 28, 2018 7:14 am
Thanks Foggy

I am sure I am clarified this with them in the past when I first took out the IVA and it was 5K each. Might have it in an email. I'll check.

What is an RICS valudation?

Thanks
PAULA



Foggy wrote:
They should bow to the estate agents valuation by inspection as being the more reliable -- but they would probably take an average. Be wary of joint IVA's giving you £5k each --- we have long argued on here that this is correct ... it definitely reads that way. However some IP's have interpreted this as, due to the two IVA's being treated as one, you only get the one disregard of £5k. A few posters have brought this arguement to us and we have given out opinion -- usually that the IP is incorrect --- but we have yet to have a poster come back to us with the result of the arguement.

Estate agents do tend to overvalue, if they think you are getting the valuation for a potential sale. They would be more "realistic" if they knew the truth (but might charge for the valuation) or if they were told that a quick sale was wanted (not a forced sale). Some IP's will actually pay for a RICS valuation.
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sosilly
Posts: 111
by sosilly » Tue Aug 28, 2018 7:17 am
Who are you with abbiesmum2003?

That's what I am worried about I did my own online valuation and it was totally unrealilstic.

I'll check my paperwork again and see what it says.

Do you have to extend or try to remortage or is the equity less than the 5K?

Thanks
PAULA


abbiesmum2003 wrote:
Having recently had to do equity release and valuation I argued the valuation they got online as totally not realistic.
It takes an average of whats sold rather than an individual valuation of your property.
Our online was up on £170k for a 3 bed terrace. Theyre not selling for that and with going over 5 years with very little maintainanve/cosmetics noone in their right mind would pay 170k for this house so we got a couole of local agents to do an accurage valuation and would market it 135-145 at the absolute max! Huge difference to online.
My t&cs asked for local agent valuation not online guess which is what I stuck too.
Hope you can too as does make a difference
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Foggy
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by Foggy » Tue Aug 28, 2018 8:22 am
sosilly wrote:
Thanks Foggy

I am sure I am clarified this with them in the past when I first took out the IVA and it was 5K each. Might have it in an email. I'll check.

What is an RICS valudation?

Thanks
PAULA


Be great if you have it written somewhere --- just in case :-)

RICS --- is Royal Institute of Chartered Surveyors. So a valuation by someone specifically qualified to do one, by physical inspection, rather than an online guess.
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