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    • cocomoo
    • By cocomoo 10th Jul 17, 1:15 PM
    • 1Posts
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    cocomoo
    House valuation - margin of error?
    • #1
    • 10th Jul 17, 1:15 PM
    House valuation - margin of error? 10th Jul 17 at 1:15 PM
    Hi all,
    I have a question regarding property valuations as a buyer.
    We have instructed our solicitor to do a valuation on a new build property we are hoping to buy. They are in the process of doing this, but the FTB nerves are kicking in and I would really like some peace of mind! I was wondering if there is any leeway / margin of error in terms of the valuation figure we will receive back? For example, would a lender be happy to lend if our offer is 5% over the valuation figure? Or would they only be able to lend us up to the valuation price?

    Thanks for reading :-)
Page 1
    • Surrey_EA
    • By Surrey_EA 10th Jul 17, 1:32 PM
    • 1,056 Posts
    • 1,249 Thanks
    Surrey_EA
    • #2
    • 10th Jul 17, 1:32 PM
    • #2
    • 10th Jul 17, 1:32 PM
    Does this concern a property located in Scotland?

    Edit: Asking as I'm otherwise not sure why you'd ask a solicitor to carry out a valuation.
    Last edited by Surrey_EA; 10-07-2017 at 1:39 PM.
    • AnotherJoe
    • By AnotherJoe 10th Jul 17, 1:36 PM
    • 7,221 Posts
    • 7,723 Thanks
    AnotherJoe
    • #3
    • 10th Jul 17, 1:36 PM
    • #3
    • 10th Jul 17, 1:36 PM
    Lenders will only lend according to the lower of their valuation or the purchase price.

    They wont stop you spending more, but if for example they valued a house at £200k and the mortgage was 90% and thats the max % they will lend you, they will only lend £180k.

    Or if you got it at £180k they will only lend you £162k.

    P.s this is for England. Scotland, maybe not
    • davidmcn
    • By davidmcn 10th Jul 17, 1:40 PM
    • 5,770 Posts
    • 5,527 Thanks
    davidmcn
    • #4
    • 10th Jul 17, 1:40 PM
    • #4
    • 10th Jul 17, 1:40 PM
    Does this concern a property located in Scotland?

    Edit: Asking as I'm otherwise not sure why you'd ask a solicitor to carry out a valuation.
    Originally posted by Surrey_EA
    It probably is, but it doesn't make a difference to the answer to the question.
    • Surrey_EA
    • By Surrey_EA 10th Jul 17, 1:50 PM
    • 1,056 Posts
    • 1,249 Thanks
    Surrey_EA
    • #5
    • 10th Jul 17, 1:50 PM
    • #5
    • 10th Jul 17, 1:50 PM
    It probably is, but it doesn't make a difference to the answer to the question.
    Originally posted by davidmcn
    That it is indeed true!
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