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@NurseHolliday
How are house prices even worked out?
In my situation, mine and my gf's flat had no comparable sales in the last 4 years in the immediate vicinity. In fact the last recorded similar property was when my gf bought the flat 4 years previous.
So what happened was a bunch of estate agents came round and valued the flat at around 400k (double what she paid 4 years ago), we took that to the bank who were happy with the valuation.
Where did they come up with that figure though? It feels like in this situation they literally could have come up with any number, and as long as the bank agreed then it's set in stone. If they'd valued it at 500k, what would the bank have checked to say whether it was too high?
I did my own spread sheet where I got the % difference between ex-council and new builds and ex-council and converted houses in a different, but similar areas, in my case H&I and Canonbury, and then applied the same % difference to new builds and converted houses in Dalston and Stoke Newington.
I also looked at how much ex-council sold for in H&I estates, then found recent sales in H&I and Dalston of comparable properties, looked at the % difference in comparable properties and then applied that % to the ex-councils sold in H&I to see what figures I got.
Using the two different methods I actually got a value of around 425k, so if what I did is even mildly applicable, we got a little bit of a bargain, but who is to say what I did is even sensible, or what Estate Agencies do??