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m4rk

Mortgage Ltv

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if i looked at a property on at 170k down from 190 peak and offered 155k and it was accepted is the loan to value based on the "value ie 170k" or the sale price of 155k?

as such if it was taken at 170,000 and i put in 27500 but bought it for 155,000 would i get a mortgage at 75% ltv? ie the difference between 170k and 155k gives 15000 of "equity" + 27500 deposit to equal 42500 which is 25% of the 170k?

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if i looked at a property on at 170k down from 190 peak and offered 155k and it was accepted is the loan to value based on the "value ie 170k" or the sale price of 155k?

as such if it was taken at 170,000 and i put in 27500 but bought it for 155,000 would i get a mortgage at 75% ltv? ie the difference between 170k and 155k gives 15000 of "equity" + 27500 deposit to equal 42500 which is 25% of the 170k?

The value is what someone is prepared to pay for it. If its value is £170,000, you won't be able to buy it for £155,000.

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The value is what someone is prepared to pay for it. If its value is £170,000, you won't be able to buy it for £155,000.

my passat i just sold is valued at £700 yet i just sold it at £450. that seemed a very unbearish response :blink:

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It's not valued at £700 any more!

Let me put it this way.

Suppose you want to by my house for £100,000.

Is the bank really going to give you a cheap mortgage on account of low LTV just because I agree to get the EA to value it at £500,000 and put it on the market for that?

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my passat i just sold is valued at £700 yet i just sold it at £450. that seemed a very unbearish response :blink:

Either of

  1. You sold it for £450 and its value is £450

  2. You sold it for £450 and you are a fool for selling it too cheap

Now when it comes to that house, the lender will look at the deal and say it is either of

  1. Seller sold it for £155,000 and its value is £155,000

  2. Seller sold it for £155,000 and he is a fool for selling it too cheap

Now the difference is £15,000 - half a year's pay at least. So the bank will say no one is so stupid as to let half a year's pay slip through their fingers - it is actually worth £155,000

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Presumably it's done on the mortgage company's valuation - which is usually about what you paid for it

But if you were remortgaging, the LTV would be based on a valuation.

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The 100% value is £155k, not £170k.

Therefore you need to put £38.75k to get a 75% LTV.

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