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Overvalued or a ridiculously low valuation?

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Im a 1st time buyer, with a 10% deposit. Had an offer accepted by the vendor.
This property is sold at a 50% discount scheme (affordable housing scheme)
Basically the leasehold property must always be sold at 50% of its market value, but you own 100% of the property.
The property was valued at 160k in November 09, therefore to be sold at asking price of 80k. I’ve had an offer of 79k accepted. Just had the place valued by the Halifax and their valuation is only 125k, therefore to be sold at 62.5k!! The property is only 6 years old and was first sold for 65k. (market value in 2004 at 130k) And the current owner got their mortgage for this property 3 years ago, also from the Halifax and they valued it then at 150k, and they got their mortgage for 75k from the Halifax no problem. The estate agent and the Housing Association (who have the lease) both agree that this valuation is ridiculous, and I’ve paid £280 for this. Because of this particular scheme, the Halifax is the only place that I know of that are providing mortgages on these type of properties. Does anyone have any advice of how to appeal or is it worth the hassle and just right-off my £280 and forget my chance of buying my first place??
Thanks xx
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Comments

  • Eric1
    Eric1 Posts: 490 Forumite
    b0bcat wrote: »
    The estate agent and the Housing Association (who have the lease) both agree that this valuation is ridiculous
    They would, wouldn't they? :)
    Why not give them a chance to drop the price? or do they have cash buyers lined up?
  • Milliewilly
    Milliewilly Posts: 1,081 Forumite
    You are at the maximum LTV at 90% and buying onto an affordable housing scheme. The Halifax will try any excuse not to lend and bank your valuation fee thanks very much.
  • bitsandpieces
    bitsandpieces Posts: 1,736 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Have prices gone up significantly since 2004? Seems worth asking if the vendor can reduce the price (if Halifax is the only place doing mortgages on this type of scheme, v likely that future potential buyers will face a similar issue to you anyway). Also, it may be helpful to get a sense of what the valuation was based on.

    If the vendor don't drop the price - or don't drop by enough that you can afford to buy - it may be worth pointing your surveyor to the previous valuation and querying why theirs is so much lower. Remember, though, that the best outcome for you is that you buy the place for the lowest possible price :D
  • Eric1
    Eric1 Posts: 490 Forumite
    Have prices gone up significantly since 2004? Seems worth asking if the vendor can reduce the price (if Halifax is the only place doing mortgages on this type of scheme, v likely that future potential buyers will face a similar issue to you anyway).
    Exactly.
    I've seen similar "discount" properties with overly inflated price tags.
    Would a similar property sell in open market anywhere close to 2 x 79,000 next year? Halifax apparently thinks not a chance, as opposed to three years ago.
  • poppy10_2
    poppy10_2 Posts: 6,588 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    b0bcat wrote: »
    Does anyone have any advice of how to appeal
    This is ridiculous. The surveyor has told you the property is worth £125k so you should only pay £62.5k maximum, rather than the £80k they are asking for it. Why would you want to appeal for the right to pay more?

    You want to go to the courts and say "it's not fair, I want to pay an extra seventeen and a half thousand pounds!"???
    poppy10
  • brit1234
    brit1234 Posts: 5,385 Forumite
    Ask for a reduction, they will backdown or never sell. Whats the worst that can happen, you lose £280? Rather that than overpaying for a property by £1000s of pounds and paying extra interest on that overpayment for decades.

    Plus when it comes to sell, the new buyer will get a survey saying your property is worth less put you into negative equity.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Makes me laugh how so many people want to pay more for a property than what it's worth (especially after having paid a professional for an opinion)
  • teabelly
    teabelly Posts: 1,229 Forumite
    Part of the Furniture
    Drop your offer to 62.5k and just tell the vendor that anyone else trying to buy will have the same problem. They may or may not sell to you. They may not be able to sell at that price if they have only been there for 3 years and paid 75k for it. Have a look around the local area and see what comparable full ownership flats are selling for. If you sell for 'half' the value but get 'full ownership' then this shared ownership scheme is a con anyway. If normal ownership flats are struggling at 125k then the one you want to buy is more than fairly valued.

    If you really want the place then be prepared to find a few extra thousand but unless there is something exceptional about this particular flat then I just wouldn't bother and find somewhere else.
  • Milliewilly
    Milliewilly Posts: 1,081 Forumite
    _Andy_ wrote: »
    Makes me laugh how so many people want to pay more for a property than what it's worth (especially after having paid a professional for an opinion)


    But not a unbiased opinion which is what you expect.
  • zappahey
    zappahey Posts: 2,252 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    But not a unbiased opinion which is what you expect.

    Where is the evidence of a biased opinion?
    What goes around - comes around
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