Should i pay for valuation??

Discussion in 'Loans & Mortgage Brokers' started by Keentolearn77, 4th Feb, 2020.

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  1. Keentolearn77

    Keentolearn77 Well-Known Member

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    hi
    I have my solicitor Conveyancer in the throws of pushing paperwork through for my subdivision- titles etc
    In order to do this (as the property is mortgaged) requires the banks consent & solicitor fees.
    The bank mentioned potentially requiring to conduct new valuations....
    We are refinancing once / as subdivision titles come through.
    Should my existing bank need to conduct valuations ??? if we advise that we are refinancing / and intend to time this with release of title / seperate subdivision titles being issued.....

    Cheers
     
  2. David R Sutantyo

    David R Sutantyo Member

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    Are you refinancing to a different bank? If so, incoming mortgagee will organise valuation for residential properties.
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Member

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    are you wanting to uncross the securities once they are separate. If so they will need to make sure the LVR is not exceeded. If not and you are happy with one big loan they shouldn't need one unless they worry that the valuation has dropped.
     
  4. Keentolearn77

    Keentolearn77 Well-Known Member

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    Will have a loan against each title / property - each being under the 80% LVR
    MORE LIKE 50-60%
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Member

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    Prob need a valuation to determine the lvr
     
  6. Keentolearn77

    Keentolearn77 Well-Known Member

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    Yes - but am i correct in saying that if we can time the refinance date correctly then my new bank yes would conduct the valuation- thus eliminating any need for my soon to be old bank from conducting any valuations...
    Ie: I’m hoping to avoid valuations being conducted twice / by each bank
     
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Member

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    yes if you don't get separate titles until you settle with the new bank that should be fine.
     
  8. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    It wouldn't surprise me if they required valuations for the sub-division process. They need to know the property is adequate for the loans in place. It does seem a bit redundant though. Subdividing usually creates value, not the other way.

    As each title is effectively creating a new property, a simple desktop valuation (which they might otherwise do and not bother telling you about) probably wouldn't yield accurate results.

    The question of who pays for the valuation depends on the lender. Some would pay for it themselves, others make you pay.