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We are looking at buying on the right to buy scheme BISF house. We had the valuation done around September and it came back at £260k which seems very high. The next door neighbors sold their house for £213k in Dec 2013. Could the value of these types of house increase by over 20% in 9 months?
We live in Redbridge IG6

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The Halifax house price index (http://www.lloydsbankinggroup.com/Media/economic-insight/house-price-tools/) says that a house valued at £213 000 in 2013 quarter 4 in Greater London would on average be worth £250 000 in 2014 Q3, so that just leaves £10 000 which I think could easily come down to difference in condition or just margin of error.

Usually BISF houses owned socially have had more work done to them than those owned privately so that could be a factor. Around here all the housing association houses have had new roofs, new boilers and central heating systems and some have had external wall insulation. Many privately owned ones have their original roofs, old back boilers etc and hardly any (none?) have EWI.

Ed

    • Guest
    • 3 years ago

    Great tool and answer. We've had the roof replaced a very long time ago and external cladding (not sure if it's wall insulation). In last 5 years the kitchen and bathroom were replaced with new boiler and house completely rewired;so could easily explain the 10k difference.

    Another BISF house near us went for 265k but that was slightly different refit some years ago replacing concrete slabs on the outside walls with brick walls.

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You dont have to accept the Council/Housing Association valuation, you can request a revaluation by the District Valuer from the Valuation Office (Part of HMRC).

My next door neighbours valuation from the District Valuer was half that given by the local council a few years ago (Newcastle upon Tyne).

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Wow, that does seem to be an unfair evaluation.

When bought our house we got a pretty big reduction off the average sale price in the area. I’m not sure if the way the discount is calculated has changed since then but we bought ours about 9 years ago.

If I remember correctly, the average sale price was calculated as £120k and the offer we were given was £36.500. I know it weren’t in or near London but the discount was still pretty substantial yet they seem to be offering you the current market value or pretty close to it.

I would ask for a re-evaluation because unless they visit the valuer may not be aware it’s a BISF house.

    • Guest
    • 3 years ago

    The offer price is the valuation (260k) minus the discount (102k) which works out to be 158k. The problem we have now is some lenders won't lend for this construction type and those that will, will consider all applications on the right to buy which includes out mother (as she's the tenent). This limits us to an 8 year mortgage and massive additional deposit and monthly repayments.

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Hi michaeltse

The Valuation does seem high to me considering your are using the right to buy.

Do you know how many years or how much discount you are supposed to be getting?

You can challenge the valuation and many people do but in doing so you do risk it being valued at an even higher amount.

Much depends on what level of discount you have accrued whilst renting from your Local Authority.

    • Guest
    • 3 years ago

    We are getting the full discount.. I was thinking the valuation would come in around 250k. Ed's answer explains the difference but we still might ask for the district valuer to take a look since I haven't seen any BISF houses go for more and 10k additional mortgage over the years adds up to many more k in interest!

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Hi and welcome. Unfortunately I think only someone who knows the housing market in that area will know the answer as house pricing is not scientific but only based on what similar homes have sold for recently. However, I can tell you what an estate agent said about how he would value our house, when he helped us dispute a mortgage valuation. He looked at all the recent sales of BISF houses in the area which ranged from £125 000 for one that was almost derelict to £179 000 for one in good condition. He identified those that were in a similar condition to ours, and also used as a guide the approximate amount it would cost us to upgrade ours to be similar to the most expensive one. Some complicating issues are that some houses had much larger gardens than others, some backed onto fields or fronted onto the countryside and others were surrounded by houses and one was a rental property and therefore went for more than it otherwise would have. Hope this helps!

Ed

    • Guest
    • 3 years ago

    Thanks Ed

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