Hi Folks
The bank has valued my IP property for loan purposes and agrees to lend me the funds but wont tell me or the previous vendor what that value is, i remember back some time reading that this is a regular occurence with lending institutions, can someone tell me why this is such a secret with the banks.
Thankstrustieone wrote:Hi Folks
The bank has valued my IP property for loan purposes and agrees to lend me the funds but wont tell me or the previous vendor what that value is, i remember back some time reading that this is a regular occurence with lending institutions, can someone tell me why this is such a secret with the banks.
ThanksSo they can control everything. In their fees you've actually paid for the valuation, so it is your right not only to know, but to expect a copy.
Ask them again to provide a hard copy for your future reference and as a benchmark for future valuations if you wish to use equity growth as another deposit to buy again.
You will get the reply, it isn't our policy……..push them and demand one or tell them you will go to the banking ombudsman or similar.
michaelparis wrote:trustieone wrote:Hi Folks
The bank has valued my IP property for loan purposes and agrees to lend me the funds but wont tell me or the previous vendor what that value is, i remember back some time reading that this is a regular occurence with lending institutions, can someone tell me why this is such a secret with the banks.
ThanksSo they can control everything. In their fees you've actually paid for the valuation, so it is your right not only to know, but to expect a copy.
Ask them again to provide a hard copy for your future reference and as a benchmark for future valuations if you wish to use equity growth as another deposit to buy again.
You will get the reply, it isn't our policy……..push them and demand one or tell them you will go to the banking ombudsman or similar.
Generally speaking, the terms agreed between the valuer and the bank restrict the use of the valuation to the latters assessment of credit (if you get hold of a bank-ordered val. you will often see it on the terms of use). Obviously, the valuer wants to limit their liability for the advice they provide only to the person they provide the advice to rather than create exposure to a buyer/borrower who subsequently relies on the val. without their knowledge
There ain't no conspiracy
Hi Yossarian,
It's for that exact purpose, that one would seek a valuation…….to revisit at any future time and use as a benchmark for that future valuation. That same credit provider will be providing future funds for use as an equity deposit on say another purchase (same or different bank) or for funds to do a reno or whatever.
I did not imply there was any conspiracy, however there is nothing transparent about the bank verbally saying yep valuation is at contract price and you have nothing written in your hand to compare to at any future point in time, when there has been a change of lending mnager.
Must admit i have never dealt with a lender that will not disclose the valuation figure.
I can understand that they may not give you a copy of the valuation (Some lenders however do) however there is absolutely no reason why they wouldnt tell you the figure.
In most cases you can work it out even if they dont tell.
Get your mortgage broker to find out and report back.
In some cases i even give my clients a copy of the valuation.
Richard Taylor | Australia's leading private lender
During the loan application i asked the broker would i be able to get a copy of the bank valuation, and even at that time he had doubts that it could be obtained, the lender is ING so i dont know if it is the normal practice not to show it to the new owner.
I will insist further for it as i truly feel everything should be out in the open.
Is this a common practice in this industry.
Thanks for the replies everyone.I have never seen a copy of the vals requested by the bank however they have, when queried, always told me the amount on the valuation, and even at a later date confirmed the dates when the vals were undertakenm whether they required a new valuation or were satisfied with the old ones.
I do not believe that the bank has any duty to disclose the amount that the valuer has provided to them (under the bank's instructions). As yossarian points out it is to limit the valuer's risk (although the valuation generally states that the valuation is only applicable for the benefit of the lending institution for the purpose of mortgage valuation purposes).
The bank is under no obligation to provide you with a copy of the valuation. You pay the bank several fees when applying for a loan, including "valuation fees". You are not actually paying for the valuation, rather you are paying for the bank to obtain a valuation. There is a difference. The valuation contract is between the valuer and the bank.
However, as scott and Richard have said, the bank should tell you what the valuation is (again, even though they have no legal obligation to disclose it) and even if the bank doesn't, you should be able to work it out. If the bank lends you 80% of the purchase price and the bank has an 80%LVR policy, then it stands to reason that the valuation came in at the purchase price.
Also, in my experience, you can find out absolutely anything (from absolutely anyone) if you ask the right questions. Just call the bank, speak with confidence, give them your loan number and ask what the valuation came in at. I did exactly the same today, even though I went through a mortgage broker to get the loan. If all you want is the valuation figure, they will probably tell you.
Cheers
K
Always a hurdle somewhere, this has come completely out of the blue. My broker now tells me the lender (ING) that their insurance underwriter will not take on the property as it is outside their risk profile, to date my loan was approved, with the bank ING & was happy with the valution from the valuation company, feedback from the broker is they are unhappy about the following.
1. The property has asbestos roof and walls.
So what i say there are 1000s of buildings with it, in this case the roof is in good condition and walls have a very good paint job2. This property has nothing like it to compare it to in the area,
it is 2 council approved flats in the one dwelling (has been for 50 years) similar to a dual occupancy i suppose.Each flat containing 2 bedrooms kitchen bathroom with shared laundry.Any view on this situation folks,I cant believe it, borrowing only 200k and the property is returning 7%,i would have thought the risk was very small if any.
Thankyou
What has the lender's insurer got to do with the risk of your tenant's being exposed to AC fibres? They are lending you money on the viability of the cashflow not the likelihood of a claim for mesopheloma in 20 years time.
Scott,they were the reasons given by the btoker,he is now looking for another lender,somehow i think i am being misled along the way.
Because of the above reasons they feel if i get into financial trouble they will have difficulties selling the property because of its uniqueness,ie 2 flats,and asbestos roofing etc.
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