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Bank valuation on a property with grannyflat (past thread)

Discussion in 'General Property Chat' started by larrylarry, 7th Nov, 2015.

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  1. larrylarry

    larrylarry Well-Known Member

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    Hi guys

    I recall that there is a thread about bank's policy in valuating property with GF but I cannot seem to find it here. In particular, what would bank do if you want equity release in the future and what consideration there is for GF?

    Thanks in advance.
     
  2. dabear

    dabear Member

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    I'm no valuer. IMO, I suppose it only depreciates. It's like valuing a standalone house + amortizing bond. That's from economic perspective, how your bank value it may differ but I doubt you will get a markup on GF.
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Straight comparable sales methodology

    In an area where there have been a few sales for eg Sydney west then you might be ok

    Where no or limited sales exist the valuer will be stuck with trying to compare to large houses

    Ta

    Rolf
     
  4. larrylarry

    larrylarry Well-Known Member

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    So for example, if it's a land with 2 bedder (front) and 2 bedder GF (back)...and no other comparables, the bank is likely to compare it with other 2 bedders?
     
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    More like a 3 and study or a 4 bedded

    Ta

    Rolf
     
  6. larrylarry

    larrylarry Well-Known Member

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    Thanks for clarification.