They priced it at what we paid in 2007 despite £50,000-worth of improvements

We applied for a secured home improvements loan, which was accepted in principle by Nemo Loans. However, its surveyor then valued our home at £270,000, which means we get a worse interest rate. We paid £275,000 for the house in 2007 and have since spent £50,000 on improvements. You couldn't buy a four-bed house in this area for that price. TWW, Bournemouth

Nemo says it reviews valuations on a case-by-case basis and that its surveyor stands by his figure. It won't, therefore, consider an appeal or a third-party valuation. According to Peter Bolton King, global residential director of the Royal Institute of Chartered Surveyors, home improvements don't necessarily add value to a property, and since prices peaked in 2007 the value of yours may well have fallen. "Valuers and lenders are being more careful in the current market," he says. True, Zoopla values your house at £284,639, but be wary of websites which base their estimates on comparable market evidence, not on the individual worth of a property.

If you need help email Anna Tims at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number.

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