Mortgage valuation

Hi

I've just been informed by my bank (Solbank) that the valuer has put a value of Euro117,000 on my apartment which is seriously restricting the amount of mortgage I can get.  This is based on a 3 bed with a list price of Euro142,300.

Has anyone else had this issue?

Thanks

Wayne

i am not surprised by the down valuation.this is because you can buy non completions for 70%.i suggest you raise the balance on your present home.let me know if you want  help with the finance as i am a fee free mortgage intermediary .

 

Hi Wayne

Would I be correct in thinking that the valuation you mention by Solbank is before IVA (VAT) is added and your value is with IVE included? Still not good but not surprising in the present financial climate.

Our apartment was valued last month by an independent assessor for our bank, the value they gave before IVE was 132.649 and our agreed contract price before IVA is 133.300. So in our case not a significant difference but as I say values going down at the moment from the values when we agreed to buy 1 or 2 plus years ago not surprising and yes you could buy one of the properties for less now but I am happy I have got the property of my choosing in the location I wanted and I would rather have that than a comparatively small saving. As I have said before 10 years from now I think it will be irrelevant.

Phil

in the current climate phil i would say thats a great valuation.would you mind telling me which bank its with.you take send me a pm if you wish-its just im a mortgage advisor and thats the sort of info i need for my clients
regards george

 

Hi George

The survey was done for our mortgage lender who is Banko Halifax by a firm called VALMESA www.valmesa.com/english.asp I was sent a copy and it is a very detailed survey including all sorts of property and population statistics and values used to determine the value of our property. It contains a detailed evaluation of both my apartment and Condado including photos. The survey is about value not structure but it also includes information on construction quality of our apartment and that of Condado, which was used to determining value. The report in the main reads well and is a fair assessment of the current situation at condado and the surrounding area. I was definitely left with the impression after reading it that as the area develops the value of property in the area will increase but that is my opinion not stated in the report.

Phil

Phil,

The Euro142.3k is before IVA so thats not the difference.  They just think that these are worth far less in the current market.  While I accept if you were going for a fire sale now then 117k is all you would expect to get I dont think marking to market in the current climate is appropriate (Im starting to sound like a US bank now!).

I've decided to fund the difference from savings - no other realistic option really - may try to remortgage in a couple of years when the credit crunch is all blown over.

Anyone picking one of these up now at 70% must be laughing!

Wayne

Wayne,

You have to remember that this is the banks collateral should you default, and as such, to them, if they ever had to take possession, it would be a fire sale! - sorry if I sound like a US banker - but I do work for one!

Ted

Ted - I agree with all of that.

My main reason for posting was I hadn't seen anyone else post this issue on here and wanted to give a heads up to those waiting for valuation reports that they may also need to untrouser a large wad of cash soon

Wayne

 

Hi Wayne

Sorry for getting that wrong, may I ask which properties were sold for Euro142,300 +IVA?

Phil

thanks phil,you will spot that besides brits the spanish are the biggest buyers either as holiday homes or to live in.they obviously see it as long term value as well which i think is a very good sign.all we need now is that idiot trichet to start lowering rates.
regards george

Phil,

We have a ground floor 3 bed apartment in the middle of block. 

Wayne

 

Hi George & Wayne

George, yes one of the things I noted when I was out at the end of last month was the amount of Spanish and French that have bought at Condado which I though was very encouraging.

Wayne then in your case it is a significant difference from contract price to valuation, I am sure at this time its disappointing. A number of people over resent months have posted about the outcome of valuation surveys and most have had valuation at less than they are paying but non as far as I am aware as low as yours. I suspect that your bank is being extra careful in lending at this time. I think most peoples valuation have been less than a thousand different than contract from what I have seen on the forum so I would think the valuation you have been given is a bit of a blip, that said I don’t know anyone else that has bought property at your price level, which garden are they in?

Phil

Phil

I'm sure this is a blip - and not a disaster for me but if I'd been relying on the mortgage would of been a different story.  On the plus side my monthly mortgage payment just got a whole lot smaller!!

I'm in same garden as you - I'm sure in a few years over a few beers we'll talk about what a good investment we've made.  Hopefuly the US bailout tonight is the start of the turnaround - I think serious rate cuts are on the way which will help also.

See you soon

Wayne

Hi Guys,

Sorry to hear about the reduced valuation but thought I should post our details regarding our valuation, which was fortunately on the positive side. Our Penthouse was valued on Tuesday and valued at €141,000. We paid €137,400 so we're obviously delighted.

PGMs post on his valuation details sound very similar to ours; it has a large amount of detail included with considerations on the resort, golf course, amenities, apartment, terrace, parking space and even proximity to Mazzaron.

Iain

Hi Guys

My valuation also came in slightly more than I paid so also happy with that as I suspect they will probably down value now due to the crunch - I wouldn't worry too much although I know it will affect the amount people can borrow when it is done on a percentage of the value of the property, which is very much an inconvenience

solbank seems to be the nightmare for valuation which doesnt surprise me as my other mortgage s with them and i wouldnt touch them again.halifax seems to be ok.smivs and madge are you both halifax?regards george

I'm with Bancaja, I can't remember the exact valuation they gave it was only about 2k above what I have paid but in fairness I just got in before the crunch really took hold


This message was last edited by smivs on 10/4/2008.

We completed last week on 3 Bed on Jardine 5.

You aren't on your own with an adverse valuation - we are with CAM Bank on a 70% LTV, and our valuation came in at Euro 118k, much to our surprise.  We have balanced the shortfall from UK equity, so have been able to complete, but with a much smaller cushion now in our Spanish accounts than we had planned for

Our broker did advise that in 12-24 months time, we could always ask the bank to revalue it and get a greater mortgage - by that time, hopefully the banking system will have recovered somewhat, and the development will be that much more advanced that this will be taken into consideration.

For now, we are battening down the hatches, and will get by.  In a few years, hopefully things will be more comfortable

Along with Smivs I have a mortgage with Bancaja. I sorted it out through the branch in Campello. Being self employed It took weeks to prove to them that I wasn't a direct threat

Hi Guys,

I am also with bancaja and 2 weeks ago our valuation took place and came in at 145,150 (EX IVA) euro's for a 3 bed ground floor.  We were delighted with this as we had paid 143,500 (EX IVA) euro for it on contract.  I must admit we were expecting the valuation to be alot lower than what we paid.

Regards

Kelly