As part of my other life away from the remedial treatments at All Dry Damp Proofing Ltd I buy and renovate properties the let them out to lucky tenants. Part of this process when buying a property is having a valuation for the mortgage company.
So you make the offer on the property, it gets accepted so you then fill out all the necessary paperwork and send it off. This also applies on re-mortgages too. Before the formal offer comes through the bank want to value the property, A) to make sure if you can’t keep up the payments they can sell the property without loss, B) To make sure the property exists and is in a fit mortgageable state.
So everything is in place, then you are told the valuation is going to cost you £450.00. Wtf? Ok so you have to have it done or the sale doesn’t go through. They have you in a corner, so you agree.
Now, this is just outlining the process to give you some background information on what the process is. Now I will tell you why I think these so-called surveyors are frauds.
I was buying a property in Barnsley, South Yorkshire at Baraugh Green and the property was up for sale at £65k. I had a viewing and found out the property had been up for sale a while. There were some damp issues on the front wall and the cellar was damp (like all cellars), but that is nothing to a company like All Dry Damp proofing . The guy had been living in the property and I knew we could add value if bought at the right price. After some haggling, we got the property at £51k.
The valuers contacted us and we arranged a date for them to look at the property (notice I didn’t say survey). The estate agent company lets them in and 20 mins later he was done. While he was there he asked the selling agent guy how much was the agreed sale to which he was told £51k.
A week later we got a call from the mortgage broker to say the mortgage we had arranged had been withdrawn. Why? I asked. Well the so called surveyor has valued the property at £51k and then said they had to take £2k off because of the damp and this takes the property price down below £50k and the mortgage companies minimum mortgage is £50k.
Now the property was worth around £80k with a little work and we had spotted a bargain. I knew this guy had not done his work properly and just said the price we were buying it at, which is just wrong when they are getting paid for it.
So, we know this guy has not done his job and he’s caught bang to rights. so what is the appeal process? Well, they give you a form to fill in and you have to find 3 similar properties in that area that were sold at the price you think it is worth in the last 3 months.
So I jump straight on Zoopla, ok, 2-bed properties Baruagh Green. Here we are 2 at £85K 1 at £75K, it was that easy. wrote their details and selling agents in the boxes and sent it off waiting for the apologetic letter saying the mortgage was back on track.
So 4 weeks later after constant emails to my mortgage broker we get the shocking news that the so called surveyor stands by his valuation and that’s it. I’m like “what do you mean that’s it,” the mortgage broker says the mortgage company will not reverse their decision even tho this guy clearly has not done his job and there is no higher re-dress. The time & money spent so far can’t be claimed back, that is it.
So this is a re-mortgage on a property we have on Wakefield Rd in Barnsley, South Yorkshire (gods own country). It’s a large 3-bed semi with the attic bedroom converted with an ensuite and a full basement conversion with 3 rooms and a door that leads out to the garden which is huge. I was asked for my valuation so not being greedy I said £140k and marked it on the low side. I had a similar property on Park rd in Barnsley that did not have the basement converted and 7 years ago this was up for £170K. A friend of mine currently had a property on Gawber Rd, Barnsley that is similar and that is on the market for £230k so I knew the prices.
So we were re-mortgaging with New St and we had to get the valuation done (the survey price was in with the mortgage deal). Now we had had this property for 10 years and since day one we have received £600.00 per calendar month for it. When the valuation came back the valuation was marked down by 20% because they said that the average rent for that area on a 3-bed semi was £550.00. Have you ever heard anything so ridiculous?
The property was clearly worth more and the surveyor should have put this valuation down by doing his job correctly, this way the terrible rule about the average rent would not have affected the borrowing. How can it be just that they use the valuation of members of the public if that is on the low side? The other worrying fact is there seems to be no accountability for them unless I have been miss-informed. Have any of you been miss treated when buying property or remortgaging? From speaking with other property people it seems this is a regular occurrence. A lot of these people turning up to survey the properties do not have any qualification and are sent just to collect information on a tick sheet. This just can’t be right.
In Britain we have a long tradition and history of property developing and these people in conjunction with the mortgage companies and government are trying to ruin it.
If this blog stuck a chord with you have a look at our other stuff on our website and see what we are about. i also have a youtube channel where i try to make informative videos on damp so check it out at Big Damp Secret