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Santander survey - significantly lower that expected property value
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# 1
FTBcroydon
Old 05-10-2013, 11:19 PM
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Default Santander survey - significantly lower that expected property value

Hi,
I was hoping to get some advice on the following situation. I am sorry it is a bit of a long post.

My partner and I are trying to buy our first home in East Croydon. We have a budget of 250k and a 15% deposit.

We recently found a two bed apartment on the market advertised at 250k. The flat is part of a newish (2009) complex of 40 flats. It is a bit unusual in that the developer decided to rent out the flats from 2009 until this year. As tenancies expired, the developer brought the flats to market and they have been selling very quickly.

We put in an offer on the flat at 240k. Everything was running fairly smoothly until this week. Santander sent a surveyor over to do an valuation on Monday. The result of this was that they valued the flat at 205k. We were frankly shocked.

Now we are really worried that we will have to pull out of the purchase. There is no way the developer would accept anywhere close to 205k. He sold the flat next door to ours for 240k earlier this month (the flat is almost identical).

Our broker has sent off an appeal to Santander and asked them to review the case on Monday. He has put a file together showing the sold prices of 2 beds sold this year in the property. All the values were between 230 and 300k. We are confident having seen numerous properties at an around the 250k mark that we are not paying over the market rate.

Has anyone had any experience of this kind of situation? Has anyone had a bank change there mind on a decision? Our broker seems confident that it is a mistake and he will make them see that with the evidence he has provided.

Thanks in advance for your help.
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# 2
BobQ
Old 05-10-2013, 11:36 PM
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Quote:
Originally Posted by FTBcroydon View Post
Hi,
I was hoping to get some advice on the following situation. I am sorry it is a bit of a long post.

My partner and I are trying to buy our first home in East Croydon. We have a budget of 250k and a 15% deposit.

We recently found a two bed apartment on the market advertised at 250k. The flat is part of a newish (2009) complex of 40 flats. It is a bit unusual in that the developer decided to rent out the flats from 2009 until this year. As tenancies expired, the developer brought the flats to market and they have been selling very quickly.

We put in an offer on the flat at 240k. Everything was running fairly smoothly until this week. Santander sent a surveyor over to do an valuation on Monday. The result of this was that they valued the flat at 205k. We were frankly shocked.

Now we are really worried that we will have to pull out of the purchase. There is no way the developer would accept anywhere close to 205k. He sold the flat next door to ours for 240k earlier this month (the flat is almost identical).

Our broker has sent off an appeal to Santander and asked them to review the case on Monday. He has put a file together showing the sold prices of 2 beds sold this year in the property. All the values were between 230 and 300k. We are confident having seen numerous properties at an around the 250k mark that we are not paying over the market rate.

Has anyone had any experience of this kind of situation? Has anyone had a bank change there mind on a decision? Our broker seems confident that it is a mistake and he will make them see that with the evidence he has provided.

Thanks in advance for your help.

No experience of it but have you thought of asking another mortgage provider? Clearly another survey fee but if you are right it will solve the problem, if the Santander surveyor is right you may be wasting money buying at that price.
Although it is not true that all conservatives are stupid people, it is true that most stupid people are conservative. John Stuart Mill
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Thrugelmir
Old 06-10-2013, 12:30 AM
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Why the wide spread of prices for 2 bed properties in the same development ?

Does the mortgage broker have a connection to the developer?
"Bull-markets are born on pessimism, grow on scepticism, mature on optimism and die on euphoria."
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# 4
opinions4u
Old 06-10-2013, 7:42 AM
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I have never understood the "I want the valuer to say I should pay more for this property" approach to home buying.

Make a low offer and if it doesn't come off buy somewhere else. Don't set yourself up for a future dose of negative equity.
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