Why do landlords get valuations?
That said, the most common reason why people need a property valuation is because their mortgage lender (usually a bank) requests one. … The bank needs to be confident that it can recover any outstanding amount owned on the property, should the buyer default on their mortgage.
Why is my landlord having a surveyor?
Buyers get surveys done on houses they are buying, not sellers. However some banks will require a survey if the owner wants to re-mortgage, which is the most likeliest reason why your landlord is getting one done.
Why do landlords remortgage?
The most common reason for remortgaging is to move on to a better deal where the monthly mortgage repayments are lower. However, most buy-to-let mortgages are interest-only, which means borrowers only pay interest on the loan and don’t actually make any repayments.
Can you contest a mortgage valuation?
Appeal. Some mortgage lenders will give you the opportunity to appeal the valuation. If you decide to do this you’ll need evidence of why you disagree with their figure – for example, records of how much similar properties in the area have sold for recently.
How accurate are property valuations?
So just how accurate can you expect a market valuation to be? There shouldn’t be too much variation, according to Mangioni – an acceptable margin of error is plus or minus 10%. That said, the market value isn’t necessarily the same as the sale price.
Why is property valuation important?
For taxation purpose: Valuation of property is important when calculating the tax on property. Taxes include wealth tax, municipal tax, property tax, vacant land tax, ground rent tax etc, which an individual has to pay to various government departments.
Why do surveyors take photos?
Surveyors frequently take photographs when undertaking surveys. It is assumed that permission will not be withheld as they are a crucial part of the survey process. … The photographs act as an aid memoir when drafting the report or possibly for future reference if a query arises after the report has been submitted.
Can you remortgage a rental property?
Yes, remortgaging one property to release equity that is used to help buy another property is a common method that landlords use to grow their portfolio. Some buy to let lenders will lend up to a maximum loan to value of 85% and affordability is based on the level of rental income that can be achieved by the property.
Can you remortgage A tenanted property?
If you have a suitable amount of equity in your home, it may be possible to remortgage to buy another property or remortgage to buy a rental property. Organising a remortgage to buy another property is a common way in which many homeowners use their primary asset to raise more capital to purchase another property.