Case Study –Using A Full Valuation To Reflect Property Improvements

The Client

A homeowner approached Henry Dannell ahead of their mortgage expiry and was initially considering a product transfer with their existing lender.

During the review, it became clear that substantial improvement works had been completed on the property over the previous two years.

This changed the nature of the advice. The key consideration was no longer simply whether a product transfer was available, but whether that route would properly reflect the property’s current value.

The Solution

A product transfer would have relied on an indexed valuation, which may not have captured the improvements made to the property. We therefore recommended a full remortgage, allowing a new physical valuation to take place. This gave the client the opportunity to access products based on the property’s updated loan-to-value position. The client proceeded with a two-year tracker mortgage, providing flexibility to review the position again in the future. The product was secured at the earliest point permitted by the lender, while pricing was monitored through to completion so that any available reductions could be captured where possible.

The Henry Dannell Difference

The value in this case came from looking beyond the immediate product choice. A product transfer may have appeared to be the simpler route, but it would not necessarily have reflected the property’s improved position. By considering how the valuation methodology affected the client’s options, we were able to structure the remortgage around the property as it stood today, rather than relying on an indexed figure that may have been out of date. For clients who have carried out significant works, the way a property is valued can materially influence the mortgage options available. Your home may be repossessed if you do not keep up repayments on your mortgage.