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Don't think that's right. Middle class is much more of a vibe - not sure most Drs, lawyers etc have a portion of income from inherited wealth.
I think most people judge it based on a combination of spoken accent, job, cultural factors (including where you went to school). Shop at Waitrose, listen to r4, academic? You could be middle class but not that well off (you don't fit into most people's perceptions of working class)
Edit: I'm obviously on dangerous ground saying what I think "most people" would say since there are clearly different views though
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Yes it will do.
Lender will probably do a desktop valuation rather than a full one but if values have gone up, mortgage can get cheaper as a result of better LTV.