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    • Wanttoknow2017
    • By Wanttoknow2017 19th Mar 17, 12:08 PM
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    Wanttoknow2017
    Under valuation on mortgage
    • #1
    • 19th Mar 17, 12:08 PM
    Under valuation on mortgage 19th Mar 17 at 12:08 PM
    We had offer accepted a while back. The mortgage surveyor went round and valued it 7k under what we had offered, saying that it needs a full damp and timber report, electrical report and a couple of other things doing before they would lend us what we want. Does anyone know where the surveyor would of got the value of 7k from, ie would it just be a random stab in the dark?
    Also, would the free report survey of gone into detail of testing for damp, or would it just be he's seen signs of possible damp? What would make them ask for an electrical report?

    Tia
Page 1
    • ciderboy2009
    • By ciderboy2009 19th Mar 17, 1:52 PM
    • 296 Posts
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    ciderboy2009
    • #2
    • 19th Mar 17, 1:52 PM
    • #2
    • 19th Mar 17, 1:52 PM
    What does the surveyor's report say?
    • Chanes
    • By Chanes 19th Mar 17, 1:59 PM
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    Chanes
    • #3
    • 19th Mar 17, 1:59 PM
    • #3
    • 19th Mar 17, 1:59 PM
    We had a similar situation years ago, the surveyor valued it at 4k less than we offered. They dropped the price of the house to match the valuation because the mortgage company look to the surveyor not the estate agent for the value and lending of money.
    • Davesnave
    • By Davesnave 19th Mar 17, 2:06 PM
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    Davesnave
    • #4
    • 19th Mar 17, 2:06 PM
    • #4
    • 19th Mar 17, 2:06 PM
    If it was just a valuation, the surveyor may have drawn on several sources.

    For example, without leaving the office, surveyors will know what comparable houses in the area are fetching. They may also have years of knowledge about that particular type and age of house, and it's likely weaknesses.

    A valuation survey is usually very cursory, but it doesn't take long to spot old wiring and distribution units, or signs of damp. I was in a HA property earlier this week and I could see evidence of damp, even though I wasn't visiting to discuss the house. If I'd been a surveyor, which I'm not, I would have wanted the cause investigated further, as it's not typical of those properties.
    'A society grows great when old men plant trees whose shade they'll never sit in.'
    • Wanttoknow2017
    • By Wanttoknow2017 19th Mar 17, 4:20 PM
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    Wanttoknow2017
    • #5
    • 19th Mar 17, 4:20 PM
    • #5
    • 19th Mar 17, 4:20 PM
    Ciderboy2009 I have not yet seen the report
    Chanel, I don't believe the vendor is in the the position to drop the price by that amount
    DaveSnave, so would they of just seen signs of damp etc? As I have been told old houses can suffer with condensation which would also give similar signs as damp? Regarding the electrics, I was advised that the property has had a new trip switch fuse box installed, so would it of just been dodgy wiring which make the surveyor request this report? As far as I'm aware from the research I have done, house's of a similar age and style and also size have been going for the same if not more than the offer we had accepted.

    Are we well within our rights to request the survey from the mortgage lenders?
    • eddddy
    • By eddddy 19th Mar 17, 4:39 PM
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    eddddy
    • #6
    • 19th Mar 17, 4:39 PM
    • #6
    • 19th Mar 17, 4:39 PM
    Are we well within our rights to request the survey from the mortgage lenders?
    Originally posted by Wanttoknow2017
    If it was just a valuation survey, it was done by the mortgage lenders for their own benefit. Typically they won't give you a copy.

    If you want your own survey report, you need to instruct your own surveyor.
    • Wanttoknow2017
    • By Wanttoknow2017 19th Mar 17, 4:46 PM
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    Wanttoknow2017
    • #7
    • 19th Mar 17, 4:46 PM
    • #7
    • 19th Mar 17, 4:46 PM
    OK thanks eddddy.
    • Davesnave
    • By Davesnave 19th Mar 17, 8:09 PM
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    Davesnave
    • #8
    • 19th Mar 17, 8:09 PM
    • #8
    • 19th Mar 17, 8:09 PM
    The vendor will be aware that if one valuation has come in £7k under, then others may well do so too too. Therefore, they ought to be open to some renegotiation. Meeting half way is often what happens.

    As to what the surveyor did, I really have no idea; I'm just giving examples of how a quick 5 minute look will tell someone familiar with property enough to make a few general judgements.

    There might be nothing wrong with the electrics. A surveyor isn't an electrician and isn't qualified to make a judgement, so they'll often recommend an electrical inspection just to cover themselves.

    Unless you have your own survey done, you probably won't learn a lot more, but as you might guess, I'm not a great fan of surveys. I prefer to look at houses with an experienced builder....it's cheaper!
    'A society grows great when old men plant trees whose shade they'll never sit in.'
    • Chanes
    • By Chanes 19th Mar 17, 10:48 PM
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    Chanes
    • #9
    • 19th Mar 17, 10:48 PM
    • #9
    • 19th Mar 17, 10:48 PM
    I don't believe the vendor is in the the position to drop the price by that amount
    Originally posted by Wanttoknow2017
    Then you have to find the money to meet the price. The mortgage provider won't let you have more than the house has been valued at I guess.
    • juniordoc
    • By juniordoc 20th Mar 17, 12:26 AM
    • 224 Posts
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    juniordoc
    What do you mean the vendor is "not in a position" to drop the price?
    His/her house is not worth as much as you both thought it was, it is the vendor who needs to re-evaluate their expectations of the price they can ask for their house!
    • JP08
    • By JP08 20th Mar 17, 8:13 AM
    • 827 Posts
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    JP08
    What do you mean the vendor is "not in a position" to drop the price?
    His/her house is not worth as much as you both thought it was, it is the vendor who needs to re-evaluate their expectations of the price they can ask for their house!
    Originally posted by juniordoc
    It's entirely possible. Eg if things go to plan we will be putting the house on the market soon. If it doesn't achieve a certain value we will not be able to afford what we want to do. There is simply a point, close to but a little below what we think the place is worth, beyond which the reason to move ceases to exist. And the plan B is then to stay put.
    • Wanttoknow2017
    • By Wanttoknow2017 20th Mar 17, 5:33 PM
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    Wanttoknow2017
    Thanks for the response DaveSnave. Think I was kinda trying to get the answer that you've just given. That is the surveyor likely to of just requested the 2 surveys just to be sure or whether they would of had to of seen something.
    Well fingers crossed all will be OK, and both reports will come back that there are no issues.
    Once all this has been done and proof given to the lender, do they have to come back out again to remove the retention or can they just be supplied the documents to prove it's been done?
    • Wanttoknow2017
    • By Wanttoknow2017 21st Mar 17, 8:00 PM
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    Wanttoknow2017
    Turns out that the rendering needs repairing/replacing and the soil vent pipe and waste pipes replacing as they are asbestos cement. What are people's thoughts? Is there a high potential of it having further issues with it?
    • Davesnave
    • By Davesnave 21st Mar 17, 8:49 PM
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    Davesnave
    Turns out that the rendering needs repairing/replacing
    Originally posted by Wanttoknow2017
    That's where the damp originated then, possibly made worse by cracked or damaged asbestos gutter/downpipe. Asbestos is OK if it's sound, but once some of it has deteriorated, it's time to replace it.

    None of us here can tell you what other issues the house might hold in store, but the ones you know about are those the lender's surveyor thinks important enough to need remedying now.

    There are few older houses that have no issues, but some can be lived with till the money is there to fix them.
    'A society grows great when old men plant trees whose shade they'll never sit in.'
    • kingstreet
    • By kingstreet 22nd Mar 17, 8:35 AM
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    kingstreet
    £7,000 is the chartered surveyor's estimate of the cost of repairs when he doesn't actually know what work is required.

    When the surveyor gets the requested reports and estimates, the valuation will then be set according to the actual cost of essential repairs needed.

    Therefore the valuation at this stage is provisional at best. For this reason, you normally find the valuation in current condition and the valuation after essential repairs are the same amount different, ie it'll be worth £7,000 more. Again, after the surveyor sees the reports, this will be subject to change.

    Once again, the word 'survey' should not be used anywhere near the lender's mortgage report & valuation.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • cashbackproblems
    • By cashbackproblems 22nd Mar 17, 10:52 AM
    • 1,705 Posts
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    cashbackproblems
    Usually the surveyor will just match it at what you offered so for them to value lower is either an anomaly or it genuinely is not worth what you offered.


    I would reduce the offer by 7k or walk away, especially in this market.
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