Any mortgage/Valuation experts?

johnmc

Well-Known Member
Joined
20 Jun 2007
Messages
26,269
Location
Manchester. Always will be.
I have a bit of an issue.

Looking to buy a new build house and at the stage where the lenders have carried out the valuation survey. They have valued it at £160k which is £20k below the £180k asking price. So your first thought would obviously be to lower your offer as you would not pay anymore than the £160k it was valued at.

However, this is on a development where there are around 200 homes of about 6 different varieties. Therefore there are around 30 or so houses exactly the same layout as the one I am looking at, however mine has one of the largest gardens on the site. So, whilst my house has yet to be finished, several others have been bought and are lived in. And these sold for £180k. Incentives are offered such as carpets, kitchens, etc but these would not affect the valuation.

So, the lenders valuers have valued it at £160k so they will not lend anymore than this. Therefore I could change lenders to see if their valuation is any different but this would cost me in fees. I could walk away but given that several properties of the exact same layout have sold at £180k I do not want to do this as I have paid a non-refundable reservation fee, have paid for extras and I do actually want the house.

Apparently the valuer went around the site without the sales rep who would usually provide comparable of the properties that have sold at £180k. Given the house prices are on the up I dont understand how its been valued below those that have sold for £180k (its in the middle of the development, not on the outskirts that neighbout the main road and as stated has a biffer than average garden) and others continue to sell for £180k as they are being finished.
 
Ask the sales office on the site for comparable properties that have been sold for £180,000 within the last 6 months on that site (you can also look for this info online on Zoopla sold prices and Rightmove sold prices) and appeal the decision. It's not guaranteed to work but that's what a mortgage lender will ask for. They will then give this information back to the valuer for him/her to hopefully change their mind.
 
As far as I know any lender would ask for usually four comaparables in the area and this would have to justify the supposed low value. Usually when I have been involved with self-build/ new build properties they have always considered post work valuations and any percentage discounts offered by property developers to potential buyers, you can always query the valuation.
 
Scrabster Six said:
As far as I know any lender would ask for usually four comaparables in the area and this would have to justify the supposed low value. Usually when I have been involved with self-build/ new build properties they have always considered post work valuations and any percentage discounts offered by property developers to potential buyers, you can always query the valuation.

The IFA has said in his experience valuers rarely amend their initial reports.

The lenders are Natwest, and apparently they use 4 different companies. According to the IFA, he had a new building semi on a new development where natwest were the lenders for both properties however when it came to the valuation two different companies were used resulting in two different figures and the bank would not alter either as they trust in their appointed valuers and who is to say who is wrong. How true that is I dont know.

However Natwest offered the best rates so if I ask another lender I will not get the same rates and have to pay the fees again
 
Ifwecouldjust....... said:
Go here

<a class="postlink" href="http://www.mouseprice.com" onclick="window.open(this.href);return false;">http://www.mouseprice.com</a>

Nothing on there for a deveopment of new builds that must have 100 houses bought in the last 18 months?
 
It sounds like the valuer has got it wrong or they failed to supply him with the proper comps when he went round.
The frustrating thing is, he will know now he has got it wrong. However I've never know one change their report in 12 yrs, no matter how much evidence you supply 'post vaulation'

Surveyors are an annoying breed.

Annoying as it may be your best bet is probably to change lender and personally ensure that the next surveyor has as many recent comps as possible to support your purchase price before they go around.

In an ideal world the builder would say 'ok we'll drop it to 160k'. This also will not happen

Good luck pal
 
Tragic meat van guy said:
It sounds like the valuer has got it wrong or they failed to supply him with the proper comps when he went round.
The frustrating thing is, he will know now he has got it wrong. However I've never know one change their report in 12 yrs, no matter how much evidence you supply 'post vaulation'

Surveyors are an annoying breed.

Annoying as it may be your best bet is probably to change lender and personally ensure that the next surveyor has as many recent comps as possible to support your purchase price before they go around.

In an ideal world the builder would say 'ok we'll drop it to 160k'. This also will not happen

Good luck pal

Yes, this is what I fear will be the outcome. More fees and a less atractive mortgage . FOr no fault of my own.

Happy new year
 
johnmc said:
Scrabster Six said:
As far as I know any lender would ask for usually four comaparables in the area and this would have to justify the supposed low value. Usually when I have been involved with self-build/ new build properties they have always considered post work valuations and any percentage discounts offered by property developers to potential buyers, you can always query the valuation.

The IFA has said in his experience valuers rarely amend their initial reports.

The lenders are Natwest, and apparently they use 4 different companies. According to the IFA, he had a new building semi on a new development where natwest were the lenders for both properties however when it came to the valuation two different companies were used resulting in two different figures and the bank would not alter either as they trust in their appointed valuers and who is to say who is wrong. How true that is I dont know.

However Natwest offered the best rates so if I ask another lender I will not get the same rates and have to pay the fees again

So many factors come into play, the key one of which is that the surveyor is advising on risk, not presumed worth/value. If advised by four independant surveyors that their maximum recommended exposure on the property is £160k, any typically risk adverse lender will err on the side of caution, even if (as happens) the surveyor is ultra-cautious and perhaps has even only gone as far as carrying-out a desktop survey (ie check the database for comparables). None of which helps you though sadly. Have you considered a 2nd unsecured loan to make-up the difference?
 
you mention the house is not finished yet and has no kitchen

They will definitely down value it if it is unfinished especially missing kitchens or bathrooms

Ask if he will reassess upon completion the bank may put a retention on the property until completion.
 

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