Remortgaging your house in the UK is a common financial strategy used by homeowners to either secure a better interest rate, consolidate debt, or release equity from their property. A key step in this process is obtaining an accurate valuation of your home. An accurate valuation determines how much equity you have in your property and whether or not you qualify for a remortgage.
This guide will cover everything you need to know about getting your house valued for remortgage in the UK, including the process, types of valuations, factors affecting property values, and tips to maximise your home’s value.
Chapter 1: Understanding the Purpose of a House Valuation for Remortgaging
1.1 What is a Remortgage?
A remortgage occurs when you take out a new mortgage on your home to replace your existing mortgage. Homeowners may remortgage to:
- Secure a better interest rate and lower monthly payments.
- Switch from a variable rate to a fixed rate.
- Release equity for renovations, investments, or other financial needs.
- Consolidate high-interest debts.
1.2 Why is a Valuation Important in the Remortgaging Process?
The valuation plays a crucial role in determining how much equity you have in your home and how much you can borrow from your lender. This is calculated through the Loan-to-Value Ratio (LTV), which compares your mortgage amount to your property’s value. A lower LTV can qualify you for better mortgage deals and interest rates.
For example:
- Property Value: £300,000
- Outstanding Mortgage: £150,000
- LTV Ratio: 50% (a lower LTV often means better remortgage rates)
Chapter 2: Types of Property Valuations for Remortgaging
There are several types of valuations available in the UK, each with its benefits and drawbacks. When remortgaging, your lender will typically require one of the following:
2.1 Online Valuation
Online valuations use computer algorithms and databases, such as Zoopla or Rightmove, to estimate the value of your property based on recent sales of similar homes in your area. This type of valuation is fast, free, and often used by lenders in the early stages of a remortgage application.
Pros:
- Instant results.
- Free of charge.
- Good for a rough estimate.
Cons:
- Less accurate due to lack of individual property inspection.
- May not account for unique features or recent improvements to your home.
2.2 Automated Valuation Model (AVM)
Automated Valuation Models (AVMs) are similar to online valuations but more sophisticated. Lenders often use AVMs to determine whether a full valuation is necessary. AVMs utilise wider data sets, including historical property price trends, and sometimes offer more accurate results than free online tools.
Pros:
- Quick and efficient.
- Cost-effective for the lender.
- Usually free for the homeowner.
Cons:
- Does not include a physical inspection.
- Can undervalue unique or recently renovated properties.
2.3 Desktop Valuation
Desktop valuations are conducted by qualified surveyors who assess the property remotely using digital tools and local property data. No physical visit to the property is required, making this valuation faster than a full survey but more accurate than an online or AVM valuation.
Pros:
- Quicker than a full property survey.
- More accurate than AVM valuations.
- Used when lenders need more detailed data but don’t require a full survey.
Cons:
- Still lacks a physical inspection.
- May overlook important factors like condition or extensions.
2.4 Full Valuation Survey
A full valuation survey involves a qualified surveyor visiting your home to carry out a physical inspection. This is the most thorough type of valuation and is often required by lenders for higher-value properties or when substantial equity release is involved.
Pros:
- The most accurate form of valuation.
- Takes into account the condition, location, and any improvements made to the property.
- Highly regarded by lenders.
Cons:
- Can be time-consuming.
- Costs can range from £150 to £1,000 depending on the property’s value and location.
Chapter 3: Factors Affecting Your Home’s Valuation
3.1 Property Location
Location is one of the biggest factors influencing your property’s value. Homes in desirable areas with good transport links, schools, and amenities tend to have higher valuations.
- Urban vs. Rural: City homes often fetch higher prices due to demand, while rural properties may have lower valuations, though this can vary depending on regional trends.
- School Catchment Areas: Homes within the catchment area of highly rated schools are more valuable.
- Transport Links: Proximity to public transport, motorways, and airports can affect desirability.
3.2 Size and Layout
The square footage of your home, the number of bedrooms and bathrooms, and the overall layout impact the valuation.
- Floor Space: Larger homes are generally worth more. However, wasted space or poor layout can detract from the property’s value.
- Number of Bedrooms: Adding an extra bedroom, whether through conversion or extension, can significantly boost value.
3.3 Condition and Age
The age and condition of your home also play a major role in its valuation.
- Structural Integrity: Surveyors will assess the foundation, walls, roof, plumbing, and electrics for signs of wear or damage.
- Modernity: Newer homes or those with updated kitchens, bathrooms, and energy-efficient features tend to have higher valuations.
3.4 Renovations and Improvements
Certain home improvements can increase the value of your property. However, not all renovations offer a good return on investment. The key is to focus on high-impact, cost-effective improvements.
High-Value Improvements:
- Loft Conversions: Often add the most value in the UK.
- Kitchen Renovations: A modern, well-designed kitchen is one of the top selling points.
- Energy Efficiency Upgrades: Installing double glazing, improving insulation, or fitting a new boiler can increase value.
Improvements with Less ROI:
- Extensive Landscaping: While kerb appeal is important, over-the-top landscaping might not yield a significant return.
- Luxury Fixtures: High-end fixtures may not offer a good ROI in every market.
Chapter 4: Preparing Your Home for a Valuation
4.1 Declutter and Clean
Before any surveyor visits, ensure your home is clean and clutter-free. A tidy, well-organised home makes a better first impression and can subtly influence the valuation outcome.
Cleaning Tips:
- Deep Clean: Ensure all rooms, including bathrooms and kitchens, are thoroughly cleaned.
- Declutter: Remove excess furniture, knick-knacks, and clutter to make rooms appear larger and more functional.
4.2 Fix Minor Issues
Addressing small problems such as dripping taps, broken light switches, or peeling paint can improve the perceived value of your home.
Quick Fixes:
- Repair Cracks in Walls: Minor cosmetic repairs make your home look better maintained.
- Fresh Paint: A fresh coat of neutral-coloured paint can modernise a room without significant expense.
- Check Fixtures: Ensure all light fixtures and door handles are working properly.
4.3 Present Outdoor Spaces
If you have a garden, patio, or balcony, make sure it’s tidy and well-maintained. Outdoor space is highly valued in the UK, especially in urban areas.
- Trim Hedges and Mow the Lawn: A neat garden adds to the overall appeal of your home.
- Add Potted Plants or Flowers: They brighten up outdoor spaces and enhance kerb appeal.
Chapter 5: The Valuation Process Step-by-Step
5.1 Step 1: Contact Your Lender
When applying for a remortgage, your lender will usually arrange the valuation. They may use an AVM, desktop, or full valuation depending on their policies and the complexity of your application.
Key Information Required:
- Property Details: Number of bedrooms, bathrooms, and overall size.
- Mortgage Information: Your current mortgage amount and any additional borrowing required.
- Renovations or Improvements: Mention any major changes made to the property.
5.2 Step 2: Prepare for the Valuation
Make sure your home is ready for inspection. Declutter, clean, and repair any minor issues before the surveyor arrives. Ensure that all areas of the property are accessible.
Documentation to Have Ready:
- Building Plans: If you’ve extended or altered the property.
- Planning Permissions: Proof of any planning permissions for significant works.
5.3 Step 3: Surveyor’s Visit (Full Valuation)
If a full valuation is required, a surveyor will visit your property to carry out a detailed inspection. They will assess both the interior and exterior of the home, looking at factors such as condition, layout, and location.
What to Expect:
- The visit will take between 30 minutes and an hour depending on the size and complexity of the property.
- The surveyor will check for structural issues, as well as evaluate the condition of key areas like the kitchen and bathrooms.
5.4 Step 4: Valuation Report
Once the surveyor completes the inspection, they will submit a report to your lender. This report includes the current market value of your home, which will inform the lender’s decision on your remortgage application.
Common Outcomes:
- Accurate Valuation: The surveyor’s estimate matches or closely aligns with your expectations, allowing the remortgage to proceed smoothly.
- Undervaluation: The property may be valued lower than expected, affecting your LTV ratio and potentially limiting your remortgage options.
Chapter 6: Maximising Your Property’s Value for Remortgaging
To ensure your home receives the highest possible valuation, follow these tips:
6.1 Undertake Necessary Repairs
Even minor issues can negatively impact a valuation. Fix any visible problems such as cracked walls, damaged flooring, or broken appliances.
6.2 Focus on Kerb Appeal
First impressions count. Make sure the exterior of your home looks inviting. This could involve a simple fresh coat of paint, cleaning windows, or adding some outdoor plants.
6.3 Highlight Energy-Efficient Features
If you’ve installed double-glazing, energy-efficient boilers, or additional insulation, make sure the surveyor is aware. Energy efficiency is becoming a key selling point for UK homes and can boost your property’s value.
6.4 Provide Documentation for Renovations
If you’ve made significant improvements, such as a loft conversion or extension, have documentation on hand to prove planning permissions and the scope of the work.
Conclusion: Navigating the Remortgage Valuation Process
Securing a remortgage in the UK hinges on an accurate and fair property valuation. Understanding the types of valuations, preparing your home to look its best, and knowing the factors that influence value will help you navigate the process successfully. Whether you’re looking to release equity, secure a better interest rate, or consolidate debt, getting your house valued is a critical step in unlocking the financial benefits of remortgaging.
