Why Get A Valuation?
Posted in FAQ's, Good Stuff To Know on September 21st, 2009 by admin – Be the first to commentWhat is your property worth?
If you fail to meet your interest payments, your property provides the bank with security. They are allowed to take control of it and sell it to recover the money they leant you in the first place, plus any interest you have failed to pay.
The bank therefore needs to know that you property is worth more than the amount they are lending you. Otherwise they might sell it and not get all their money back.
If the amount you want to borrow is small compared to the value of your property, the bank may not need proof of the value of the property. As the amount gets bigger in comparison to the property’s value, the bank may ask for a rates notice – which gives the council valuation for your property. This is held to be a general guide to the property’s value, but not strictly accurate (as it may be up to 3 years old).
If the amount is large in comparison to the value of the property, banks will typically require a valuation to be done by a registered valuer. A valuation more than six months old is held to be outdated. One that is three to six months old may be accepted, or may also be deemed outdated depending upon the lender
