We have a property which has a mortgage and secured loan against it and have had a recent market valuation from a local estate agent which basically indicates that we would have around £10k equity (excluding sale costs) after repayment of both mortgage and secured loan. The property is in joint names with my husband and we are both considering BR. My questions are:
1)After deducting 2% sales costs, this would leave approx £5k equity if sold at the current market value. Would this level of equity be considered significant enough to force a sale? 2) On what basis should the property be valued? Should we be getting a valuation on a forced sale basis (which would probably be lower than the market value)? 3) I've heard that surveyors often value properties more negatively than local estate agents - does anyone know if this is the case? 4) When in the BR process is the property actually valued? And is the valuation done by us or the OR?
Obviously we are just considering whether there is any possibility of keeping the house should we go down the BR route so any advice on equity and valuations appreciated.
1) the OR does not have to take into account selling costs, The OR would consider selling if the equity was £10K or more each. The Equity can rise if not bought back (of course it can drop as well)
2) Worth a try, the OR will be doing a valuation as well, If there is a dispute the OR will ask you to get a surveyor who gives a true value not a market or forced sale price
3) The Surveyor gires a true price, the estate agent gives you what your asking for, so no guarantees that a surveyor will be less, You will pretty much be bound by the surveyor though
4) It is done at any time when you want to guy the equity, Both do one, the OR usually uses an internet valuation to get a rough guide to where the price should be
Questions re Equity
Posted - 30 July 2010 : 21:35:03
